By OGJ editors
HOUSTON, Sept. 1 -- Valero Energy Corp. closed its acquisition of Premcor Refining Group Inc. on Sept. 1, making Valero the largest refining company in North America with 18 refineries.
Bill Greehey, chairman and chief executive officer, said Valero bought Premcor's four refineries for $8 billion, significantly less than their replacement cost (OGJ Online, Apr. 26, 2005).
"We have improved our leverage to product margins and further enhanced our sour crude processing capabilities," Greehey said. "We are in a new era for refining where I believe you will continue to see higher highs and higher lows for both product margins and sour crude discounts."
Valero's crude capacity now totals 2.7 million b/cd, according to Oil & Gas Journal's latest Worldwide Refining Survey (OGJ, Dec. 20, 2004, p. 46).