Valero energy corporation case study

Abstract

Aim: The study’s aim is to deeply investigate Valero Energy Corporation’s operations. Established in 1980, Valero Energy Corporation (Valero) is currently one of the biggest petroleum refiners in the oil and gas industry both in the United States and internationally. Headquartered in San Antonio, Texas, Valero owns 15 petroleum refineries and 14 ethanol plants.Method: Valero Energy Corporation’s operations were closely examined using a case-analysis technique.Findings: The current study results depict that Valero Energy Corporation faces challenges in the industry’s midstream and downstream sector and emphasizes external factors such as weather and geopolitical influences. The prices of crude oil are stabilizing but uncertainty in the market and the slowdown of economic growth internationally will remain a challenge for Valero Energy Corporation in the short-term future. Companies in the oil and gas sector will continue to enforce capital discipline as a long-term strategy to prepare them for the economic uncertainty ahead and unsteady industry conditions. Valero’s strategic acquisitions and divestitures have helped the company through tough times in the past, but is Valero’s mix of assets appropriate today?Implications/Novel Contribution: Valero Energy Corporation Case Study is suitable for undergraduate and graduates business students to apply critical thinking, qualitative and quantitative analyses, and decision making. The case study features Valero Energy Corporation its quest for relevance and above-average returns.