Valero CEO Says Oil Refiners Will Reduce Output (Update1)
By Jordan Burke
Dec. 3, 2008 (Bloomberg) — Valero Energy Corp., the largest U.S.
refiner, said refiners will cut output because of lower demand.
Demand has evaporated, said Bill Klesse, Valeros chief
executive officer, in a presentation to investors at a Merrill
Lynch energy conference in New York. It is always about demand
in our business because supply is out there.
The company may also seek to purchase assets as refinery
values fall, he said.
We think there is going to be an opportunity for
acquisitions, Klesse said. Valero may buy plants that we
view as very strategic, that will make our business better.
Earlier today, Valero said it is no longer selling its
Ardmore, Oklahoma, and Memphis refineries.
Valero rose 21 cents, or 1.2 percent, to $17.59 at 12:42
p.m. in New York Stock Exchange composite trading. The shares
have dropped 75 percent this year.