Question · Q3 2025
Philip Jungwirth asked about the dynamics of the heavy sour crude mix in the Gulf Coast, considering declining Mexican production, Venezuelan uncertainty, Canadian TMX capacity, and the role of fuel imports. He also inquired about coker margins, given high diesel cracks but still tight differentials. Additionally, he asked about the 'point of no return' for the planned Benicia refinery closure, considering the state's desire to keep it open and scheduled turnarounds.
Answer
Gary Simmons, Executive Vice President and COO, noted that declining Mexican production is largely offset by increased Canadian volumes and returning Venezuelan barrels, with additional OPEC+ production (Basra, Kirkuk) leading to a heavier crude diet in Q4. He stated that high sulfur fuel oil has been strong, limiting the incentive to buy it for cokers. Rich Walsh, Executive Vice President and General Counsel, confirmed that discussions with California regarding Benicia have not materialized, and Valero's plans for closure are moving forward as scheduled, with no changes anticipated.