Valero 1Q profits triple, record RD throughputs

Market: Crude oil, Oil products
27/04/23

US independent refiner Valero more than tripled profits in the first quarter of 2023, growing throughputs and refining margins despite seasonal maintenance.

The company's refining margin rose by 83pc to $23.27/bl compared to the same quarter a year earlier, according to an earnings release today. Per barrel operating expense rose by 1pc to $4.78/bl.

Valero ran its refineries at 93pc utilization rates during the quarter despite planned maintenance at several facilities. Throughputs were up by 4.6pc to 2.93mn b/d from the same quarter in 2022.

First quarter capital expenditure totaled $524mn for Valero, comprising $341mn of sustaining capital, which includes the cost for turnarounds and catalyst changes.

Valero's refining segment reported operating income of $4.1bn in the quarter, nearly triple the $1.5bn the segment reported in the first quarter of 2022.

Overall profit at the refiner more than tripled to $3.1bn in the first quarter from $905mn in the year prior.

The refiner completed a coker project at its 626,000 b/d Port Arthur, Texas, refinery in March and began operations at the upgraded facility in April.

Valero will process more sour crude grades and residual feedstocks following the upgrade, a strategy also being pursued by Marathon Petroleum's nearby 593,000 b/d Galveston Bay refinery, which is adding an additional 17,000 b/d of residual fuel oil upgrading capacity.

Record renewable throughputs

Valero's renewable diesel joint venture with Diamond Green Diesel (DGD) achieved record quarterly throughputs, although margins declined from previous quarters.

Valero's renewable diesel (RD) segment grew operating income by 38pc to $205mn in the first quarter as throughputs more than doubled to 71,000 b/d following the fourth quarter startup of DGD's Port Arthur plant, beating the company's record RD sales volume of 58,000 b/d in the fourth quarter of 2022.

RD refining margins declined by 10pc in the quarter to $1.30/USG compared to the same quarter in 2022.

Valero announced in January that DGD would begin a project to upgrade approximately 50pc of its current 31,000 b/d RD production to SAF. The project is slated for completion in 2025 at an estimated cost of $315mn.

By Nathan Risser

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

18/12/25

Ithaca first to try new UK North Sea regime

London, 18 December (Argus) — UK-listed upstream producer Ithaca Energy has begun the approval process for a development in the North Sea, the first since the government softened its approach to the region. Ithaca has submitted a development summary and environmental statement for the Fotla field to the offshore regulator Opred. It outlines a two-well tie-back to the Britannia platform, which processes liquids from the Greater Britannia Area, including Ithaca's Alder field. Ithaca indicates that if the process is successful, drilling will begin in the first half of 2027, with first oil in the final quarter of that year. This is the first submission of an offshore proposal since the UK government published its 'North Sea Future Plan' alongside its budget in late November. That enables "limited oil and gas production in areas that are already part of an existing field, or in areas adjacent to already licensed fields, linked via a tieback, to help ensure they remain economically viable". Developers are not permitted to explore for oil and gas at these sites, and a ban remains on new oil and gas licensing. London's stance on North Sea development has delayed the Rosebank project, in which Ithaca holds a 20pc stake, and the company's west of Shetland Cambo project. Ithaca expects its production to average 119,000-125,000 b/d of oil equivalent (boe/d) this year. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

18/12/25

News

18/12/25

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

Tokyo, 18 December (Argus) — Japan's gasoline consumption will continue falling because of its decarbonisation drive, but the country's gasoline consumption is unlikely to reach zero as gasoline-powered cars and hybrid gasoline-electric vehicles (HEVs) account for a vast majority of newly registered passenger cars. Japan's gasoline sales declined at least over 2016-24, with the exception of a slight year-on-year increase of 0.03pc in 2022, data from the Petroleum Association of Japan (PAJ) show. The country's gasoline sales totalled 330mn bl (904,100 b/d) in 2016, falling to below 280mn bl (767,100 b/d) in 2024. The country's transport sector accounted for 19.2pc of total CO2 emissions in the April 2023-March 2024 fiscal year, according to Japan's environment ministry. Half of the transport sector's CO2 emissions came from gasoline in the 2023-24 fiscal year. Tokyo renewed its global warming countermeasures plan in February 2025, which reiterated its target of having all new car sales be "electrified vehicles" by 2035 and to achieve net-zero CO2 emissions through the vehicle lifecycle by 2050, in efforts to abate emissions. But these "electrified vehicles" do not only refer to fully electric-powered EVs nor fuel cell vehicles (FCVs) but also include gasoline-consuming HEVs and plug-in hybrid electric vehicles (PHEVs). This means that Japanese passenger car owners will likely remain dependent on gasoline, even as gasoline consumption declines, given that Japan's preference for hybrids is likely to sustain its momentum for the foreseeable future. The country's gasoline requirement will fall by 2.4pc to 260mn bl (712,300 b/d) in the April 2026-March 2027 fiscal year, compared with the 2025-26 level, based on Japan's trade and industry ministry Meti's outlook. This downtrend is expected to continue by declines of 2.1-2.5 pc/yr at least until 2029-30, largely because of higher fuel efficiency and wider use of HEVs, Meti said. The number of newly registered passenger cars, including imported cars, totalled slightly below 2.4mn units over January-November 2025, data from the Japan Automobile Dealers Association (JADA) show. Out of this total, gasoline-consuming HEVs accounted for 60pc, and gasoline cars hold a 32pc share. Gasoline-powered cars and HEVs have jointly accounted for around 90pc at least since 2020. The share of HEVs in newly registered cars has also grown consistently every year, from 37.1pc in 2020 to 61.1pc in 2024, mostly replacing the share of gasoline cars, while the share of EVs has stalled at 0.6-1.7pc of the total of registered units every year over the same period, data from the JADA show. "The hybrid trend is likely to remain strong going forward. Compared with the time when it seemed the global shift to EVs would happen decisively and rapidly, the momentum now appears to have slowed somewhat," Japan's trade and industry minister Ryosei Akazawa said at an interview with reporters, including Argus , in October. The shift towards EVs has not been as strong as expected, which could have benefited gasoline car makers. But US tariffs on Japanese automobiles likely eroded the profitability of Japanese automakers, with 15pc of their domestic car output exported to the US in 2024, according to Meti. The US tariff rate was lowered to 15pc from 27.5pc in September, but is still far higher than 2.5pc, the rate before US president Donald Trump's additional 25pc automobile tariff took effect in April. To support Japanese automakers given the challenging tariff environment, Tokyo could freeze its environmental performance tax — a levy of 0-3pc — imposed on car owners at the point of acquisition depending on automobile features, such as fuel efficiency. This move could pave the way for gasoline-powered vehicles to regain momentum or pose obstacles to the expansion of EV cars' market share in the coming years. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

BP appoints Woodside’s O’Neill as next CEO

17/12/25

News

17/12/25

BP appoints Woodside’s O’Neill as next CEO

New York, 17 December (Argus) — BP appointed Woodside Energy chief executive officer Meg O'Neill as its next chief executive effective from next April. O'Neill will replace Murray Auchincloss, who has decided to step down on 18 December after more than three decades with the London-based oil major. O'Neill transformed Woodside into the biggest energy company listed on the Australian Securities Exchange after taking over as chief executive in 2021, according to BP. While at Woodside, she also oversaw the acquisition of BHP Petroleum International. O'Neill also spent more than two decades at ExxonMobil earlier in her career. "Her proven track record of driving transformation, growth, and disciplined capital allocation makes her the right leader for BP," said Albert Manifold, chairman of the company's board of directors. Carol Howle, executive vice president, supply, trading & shipping of BP, will serve as interim chief executive until O'Neill takes over. Auchincloss will also serve in an advisory role until December 2026 to ensure a smooth transition. BP scaled back ambitious low-carbon goals earlier this year with Auchincloss conceding that the company had been "optimistic for a fast [energy] transition but that optimism was misplaced." The company raised its 2030 target for oil and gas production as part of a "fundamental reset" of strategy that also entailed a cut in renewable energy investments. O'Neill's appointment follows a search process overseen by the board, with the help of an independent recruitment firm, as part of the company's long-term succession planning. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump doubles down on Venezuela oil threat

17/12/25

News

17/12/25

Trump doubles down on Venezuela oil threat

Washington, 17 December (Argus) — President Donald Trump on Wednesday doubled down on his threat to blockade Venezuelan oil shipments unless Caracas offers compensation for oil assets expropriated years ago. Democratic lawmakers on the same day forced the House of Representatives to schedule a vote on resolutions that would prohibit Trump from using military force against Venezuela without explicit authorization from Congress. "They took all of our oil from not that long ago, and we want it back," Trump told reporters on Thursday. "They illegally took it." Trump's domestic policy adviser Stephen Miller on Wednesday said that "American sweat, ingenuity and toil created the oil industry in Venezuela". Venezuela nationalized its oil industry in 1976, only to partially reverse course in the 1990s by inviting US and other foreign oil companies to participate in joint ventures with state-owned PdV. Former Venezuelan president Hugo Chavez in 2007 ordered PdV to change the business terms of operations in joint ventures. Chevron and some European companies accepted these terms. ExxonMobil and ConocoPhillips did not, eventually winning awards in international tribunals and US courts for the expropriation of their assets in Venezuela. ConocoPhillips holds the largest claim for expropriated assets, at $12bn. That claim is about to be partially satisfied as a US court has ordered the auction of PdV-owned US refining company Citgo. It was not clear what prompted the change in the stated rationale of the US campaign of pressure against Venezuelan president Nicolas Maduro. Trump and US officials until this week described the campaign in terms of curbing the seaborne flow of drugs and putting an end to migration from Venezuela, even though Trump previously mentioned possibly pushing for regime change in Caracas. Trump in a social media post on Tuesday night declared a blockade of most Venezuelan seaborne oil shipments. "We're not gonna let anybody going through that shouldn't be going through," Trump said on Wednesday. The Maduro government denounced Trump's threat and appealed to the UN. It is not clear if Caracas can counteract the blockade. Venezuelan oil flows to Cuba already have stopped and cargoes to other destinations were grinding to a halt, following the 10 December seizure of a Cuba-bound Venezuelan oil tanker by the US Coast Guard. US House debate The House of Representatives later on Wednesday will vote on two separate resolutions to prohibit the use of US military force against Venezuela without congressional approval. Debate on the House floor Tuesday afternoon showed a division largely along partisan lines, indicating the resolutions are unlikely to pass. Republican lawmakers pushed back against the resolution, casting the US operation as an extension of the administration's domestic counter-narcotics efforts — a line the White House had advanced until Wednesday. "Congressional authorization is not required to carry out precise, limited strikes," House Foreign Affairs Committee chairman Brian Mast (R-FLorida) said. "My colleagues did not object when prior presidents conducted military operations in Yemen, in Libya, and Syria," Mast said. The US military operation near Venezuela "isn't about drugs — it's about regime change, and it's about oil," said congressman Gregory Meeks (D-New York), who sponsored one of the resolutions. "Trump is provoking a new war right in our backyard and threatening to destabilize an entire region", Meeks said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Libyan oil firms bypass government to sell crude

17/12/25

News

17/12/25

Libyan oil firms bypass government to sell crude

London, 17 December (Argus) — Libyan upstream operators have used a special contractual clause to sell some crude directly to international oil firms in recent months, bypassing the central government to directly access oil revenues, sources told Argus . Mellitah Oil & Gas, Akakus Oil, Zueitina Oil and Agoco sold crude worth more than $380mn between March and October, under this "proxy-payment" scheme, to Italy's Eni, Spain's Repsol, Austria's OMV and Libya's Arkenu Oil respectively, according to sources. The mechanism is legal under a clause in production-sharing contracts dating back to the time of former leader Muammar Gaddafi, which allows operators to sell crude directly to cover special funding needs, sources said. But sources and analysts say the mechanism is opaque, lacks checks and balances and could be exploited for personal gain. It also diverts oil revenues away from the central bank, the custodian of Libya's oil wealth. "The proxy payments occur outside the framework of the ministry of finance and the central bank [and] are not recorded as official revenues or expenditures," said an official at the ministry of finance. "It is being used as an unlawful tool for controlling oil revenues." NOC, Eni, Repsol and Arkenu have been contacted for comment. OMV declined to comment. State-owned NOC, which has stakes in the upstream operators, normally sells its equity crude production to international buyers with proceeds flowing to a ministry of finance account at the central bank in Tripoli. International oil firms with stakes in the operators, including Eni, Repsol and OMV, are allocated equity crude and pay royalties and taxes to the Libyan state. The crude being sold under the proxy payment mechanism is from Libya's equity production, and is separate from the equity crude allocated to international oil firms. The operators are usually reliant on the state to fund their operations. But Libya's political division, with rival governments in the east and west, has for years prevented a unified state budget, leaving operators with irregular and insufficient funding from the central government in Tripoli. "The mechanism was never supposed to be used in this way," said a source with knowledge of the matter. "You can't confirm where this money is being spent." "It's been heavily exploited now in the absence of a budget," said another source at a private Libyan oil firm. Libya's fragmented political framework has allowed powerful groups varying levels of control over the economy, including in the upstream sector. Enter Arkenu The most high-profile example of this is services firm Arkenu Oil, which the UN has said is controlled by Saddam Haftar, a son of east-Libya militia leader Khalifa Haftar. Arkenu has a contract with NOC subsidiary Agoco , operator of the Sarir and Mesla oil fields, to boost output in return for payments in crude. Industry figures and analysts question the capacity of Arkenu to carry out such work and have said the company may be part of an illicit revenue generating scheme. Arkenu has received crude valued at $200mn under the proxy payment mechanism, a source said. Libya's Tripoli-based government ordered a review of contracts related to Arkenu earlier this year, although analysts question the sincerity of the move. Sources and analysts say the use of proxy payments mechanism could spiral and further drain state revenues. Libya produces about 1.4mn b/d of crude and makes most of its income from oil exports, which were worth $28.7bn in 2024, according to Opec's latest Annual Statistic Bulletin. The heads of NOC, the central bank, audit bureau and the attorney general met in late November to discuss, among other issues, the proxy payment mechanism "and its implications for the state's general budget." By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more

Valero 1Q profits triple, record RD throughputs

Record renewable throughputs

Related news posts

Ithaca first to try new UK North Sea regime

Ithaca first to try new UK North Sea regime

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

BP appoints Woodside’s O’Neill as next CEO

BP appoints Woodside’s O’Neill as next CEO

Trump doubles down on Venezuela oil threat

Trump doubles down on Venezuela oil threat

Libyan oil firms bypass government to sell crude

Libyan oil firms bypass government to sell crude

Related Products

Argus Specialised Freight

Argus Specialised Freight

Argus Refinery Gate Values: A crucial piece of the crude supply chain puzzle

Argus Refinery Gate Values: A crucial piece of the crude supply chain puzzle

Unlock the True Value of Crude with Argus Refinery Gate Values (RGVs)

Argus Asia Crack Spread Forward Curves

Argus North American Long-Term Natural Gas Forward Curves

Business intelligence reports