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    Paul Sankey • Sankey Research

    Paul Sankey's questions to Valero Energy Corp (VLO) leadership

    Paul Sankey's questions to Valero Energy Corp (VLO) leadership • Q2 2025

    Question

    Paul Sankey of Sankey Research asked about the reasons for sustained high U.S. refining throughput despite recent shutdowns and the outlook for the second half of the year. He also inquired about the impact of Nigeria's new refining capacity on Atlantic Basin markets.

    Answer

    VP of Refining Services Greg Bram attributed high throughput to strong post-turnaround operational performance and relatively mild summer weather. EVP & COO Gary Simmons noted that Nigeria's Dangote refinery is still struggling with its resid FCC unit, causing it to run lighter crudes like WTI and remain a net importer of gasoline, thus having a limited impact on Atlantic Basin product balances so far.

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    Paul Sankey's questions to Valero Energy Corp (VLO) leadership • Q2 2025

    Question

    Paul Sankey of Sankey Research questioned why U.S. refining throughput has remained high despite shutdowns and asked about the impact of Nigeria's new refining capacity on Atlantic Basin markets.

    Answer

    VP Greg Bram attributed high U.S. throughput to strong operational performance, mild weather, and fewer outages, with H2 turnarounds looking average. EVP & COO Gary Simmons noted that Nigeria's Dangote refinery is still facing operational issues with its FCC unit, causing it to run light crudes and import gasoline, thus limiting its immediate market impact.

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    Paul Sankey's questions to Valero Energy Corp (VLO) leadership • Q4 2024

    Question

    Paul Sankey requested commentary on trade arbitrages and the outlook for the Atlantic Basin, considering factors like the new Dangote refinery. He also asked for insight into how potential tariffs on crude would be practically implemented.

    Answer

    Gary Simmons, EVP and COO, explained that the Dangote refinery's ramp-up is primarily impacting European markets and is being offset by other shutdowns, keeping trade flows relatively stable for Valero. Regarding tariffs, Lane Riggs, CEO, stated that the impact is speculative but would likely be shared between producers and refiners in captive markets, while the Gulf Coast would price it in against alternatives.

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    Paul Sankey's questions to Chevron Corp (CVX) leadership

    Paul Sankey's questions to Chevron Corp (CVX) leadership • Q4 2024

    Question

    Paul Sankey asked a series of questions regarding the potential to operate at the low end of the CapEx range, whether Chevron is underinvested in refining, the possibility of mega-deals, and how the new power investment fits into capital priorities.

    Answer

    CEO Mike Wirth affirmed that operating at the low end of the CapEx range is possible, emphasizing capital discipline. He stated they are always open to the right downstream opportunity but will not overpay. He declined to speculate on mega-deals and confirmed the power investment must compete for capital within the existing budget.

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