Question · Q3 2025
Paul Chang asked about the decline in octane value compared to Q2, seeking insights into the cause and whether the trend is expected to continue. He also inquired about the role of robotic technology and AI, asking if these advancements represent an evolution or a transformative shift in how Valero conducts business across refining, back office, and trading, drawing a comparison to cost reduction efforts in the upstream sector.
Answer
Gary Simmons, Executive Vice President and COO, explained that octane value tends to trade inversely to Naptha. He noted that Naptha strengthened in Q3 due to reduced Russian supply, US Gulf Coast Naptha flowing to Venezuela, and increased Asian petrochemical demand, which lessened the incentive to blend Naptha into gasoline. Greg Bram, Vice President, stated that Valero has been using and expanding robotic automation and AI techniques for efficiency and inspection (e.g., tank cleaning, drone inspections) for some time, viewing it as a continuous evolution that will bring further improvements, especially given Valero's strong operational data.