Visibility to Growth and Disciplined Capital Management
U.S. Natural Gas Provides Opex and
Feedstock Cost Advantages
Our refining operations consume approximately 921,000 mm Btu/day of natural gas, of which
63% is operating expense and the balance is cost of goods sold
Significant annual pre-tax cost savings compared to refiners in Europe
Prices expected to remain low and disconnected from global oil and gas markets
Natural Gas Cost Sensitivity for Valero's Refineries
$2.54/mmBtu
$0.79/bbl throughput
$0.8 billion
pre-tax
annual cost
advantage
$4.81/mmBtu
$1.50/bbl throughput
U.S.
2019 average natural gas prices through October 31, 2019 for U.S. and Europe.
Europe
Estimated cost is derived using 921,000 mm Btu/day of natural gas consumption and a throughput of 3.0 MMBPD (12-month rolling average).
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