By BEN LEFEBVRE
Valero Energy is taking steps to increase the amount of
light, sweet crude its refineries can process, the company's
chief executive officer said Tuesday.
Valero and other US refiners have profited by the increase
in US oil production. Recent drilling innovations, including
hydraulic fracturing, or fracking, have helped ExxonMobil and
its competitors develop oil fields once thought unprofitable,
leading to higher oil supplies and falling prices.
Valero said it was spending about $500 million for new
equipment at its refineries in Houston and Corpus Christi,
Texas, to increase their light, sweet crude refining capacity by a combined
The company was also planning to ship more crude oil from Texas
to its refinery in Quebec City, expecting
the refinery to cease importing oil from
outside North America by the end of 2013.
Even with the added cost of transporting the oil to Canada,
Valero profited by the higher quality fuels it produced, Valero
CEO Bill Klesse said during a call with investors.
"When they ran the oil into the plant it cracked very well
and had better yields," Mr. Klesse said.
Dow Jones Newswires