8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 6, 2007

VALERO ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation) 1-13175
(Commission File Number) 74-1828067
(IRS Employer
Identification No.)

One Valero Way
San Antonio, Texas
(Address of principal executive offices) 78249
(Zip Code)

Registrant’s telephone number, including area code: (210) 345-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Slides From Presentation

Item 7.01 Regulation FD Disclosure.

Senior management of Valero Energy Corporation (the “Company”) will be meeting with investors on July 9, 2007, at which time the slides attached to this report will be presented. The slides are included in Exhibit 99.1 to this report and are incorporated herein by reference. The slides will be available on the Company’s website at www.valero.com.

The information in this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Items 7.01 and 9.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company or any of its affiliates.

Safe Harbor Statement

Statements contained in the exhibit to this report that state the Company’s or its management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include those mentioned in the documents that the Company has filed with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits.

     99.1 Slides from presentation to be used on July 9, 2007.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	VALERO ENERGY CORPORATION
Date: July 6, 2007	By:	/s/ Jay D. Browning
		Jay D. Browning
		Senior Vice President and Secretary

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EXHIBIT INDEX

Number	Exhibit
99.1	Slides from presentation to be used on July 9, 2007.

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EX-99.1

Exhibit 99.1

Basics of Refining Desulfurization Hydrocracking Valero Refining System Benicia Refinery Operations CARB Gasoline with 10% Ethanol Plant Tour

Rich Marcogliese Executive Vice President Refining Operations

Crudes are classified and priced by density and sulfur content Crude density is commonly measured by API gravity •API gravity provides a relative measure of crude oil density •The higher the API number, the lighter the crude Light crudes are easier to process Heavy crudes are more difficult to process Crude sulfur content is measured as a percentage •Less than 0.7% sulfur content = sweet •Greater than 0.7% sulfur content = sour •High sulfur crudes require additional processing to meet regulatory specs Acid content is measured by Total Acid Number (TAN) •Acidic crudes highly corrosive to refinery equipment •High acid crudes are those with TAN greater than 0.7

Source: Industry reports NOTE: Red line represents the average crude quality by decade (actual and projected) Majority of global reserves are light/medium sour Most quoted benchmark prices are light sweet crudes •WTI (West Texas Intermediate), Western Hemisphere •Brent (North Sea Crude), Europe Historical trend shows global crude supply becoming heavier and more sour

Crude TypesCharacteristicsYields 2005 U.S. 3% 34 API GravityProduction Light Sweet Crude30% 0.7 % Sulfur (e.g. WTI, Brent, Saharan Refinery 34%7% Blend)35% DemandGases Most Expensive33% Gasoline RFG 50% Conventional 3%CARB 24 — 34 API Gravity Medium Sour Crude21%Premium 0.7 % Sulfur (e.g. Mars, Arab Light,26% Arab Medium, Urals)50% Demand 33% Distillate 50% Less ExpensiveJet Fuel Diesel Heating Oil 24 API Gravity 1% 14%Heavy 0.7 % Sulfur22%10%Fuel Oil & Heavy Sour CrudeOther (e.g. Maya, Cerro Negro, Cold 15% Demand Lake, Western Canadian Select)63%Source: EIA Refiner Production Least Expensive

Refineries upgrade crude oil to higher value products

IntermediatesFinal Products 90°FPropane, Butane • Refinery fuel gas and lighter• Propane • NGLs 90-220°FStraight Run More Gasoline (low • Gasoline (high octane) octane)processing Crude oil 220-315°FMore• Gasoline (high octane) Naphtha Distillationprocessing• Jet fuel Tower (Crude• Kerosene Unit)315-450°FMore• Jet fuel Kerosene processing• Diesel •Fuel oil More• Gasoline (high octane) 450-650°FLight Gas Oil Furnace• Diesel processing •Fuel oil More• Gasoline (high octane) 650-800°FHeavy Gas Oil• Diesel Vacuumprocessing• Fuel oil Unit • Gasoline (high octane) 800+°FResidual Fuel More• Diesel Oil/Asphalt• Fuel oil processing •Lube stocks

Crude Unit Propane/Butane4% Propane/ Butane Gasoline Low Octane Gasoline Reformer High Octane GasolineRFG Towerand Naphtha30% Conventional CARB HydrogenPremium LightDistillation HS Kerosene/Jet FuelDistillate LS Kerosene/Jet Fuel SweetDesulfurizer34% Distillate CrudeJet Fuel Diesel HS Diesel/Heating OilLS Diesel/Heating Oil Heating Oil Vacuum Gas OilHeavy 32% Fuel Oil & UnitOther Heavy Fuel Oil 100% Total Yield Simple, low upgrading capability refineries run sweet crude

Crude Atmospheric TowerVacuum TowerReformer

Crude UnitPropane/ Propane/Butane8%Butane Gasoline ReformerRFG Low Octane Gasoline High Octane Gasoline45% Conventional and NaphthaCARB Tower Premium Hydrogen Distillate LightDistillationHS Kerosene/Jet FuelLS Kerosene/Jet Fuel Desulfurizer27% Distillate SourJet Fuel HS Diesel/Heating OilLS Diesel/Heating OilDiesel CrudeHeating Oil Light Cycle Oil (LCO) Alkylation UnitAlkylate Fluid Catalytic Vacuum Gas Oil Cracker Unit(FCC)FCC Gasoline Heavy 24% Fuel Oil & Other Heavy Fuel Oil 104% Total Yield Moderate upgrading capability refineries tend to run more sour crudes while achieving increased higher value product yields and volume gain

Crude Hydrogen Plant Gas Unit Propane/ Propane/Butane7%Butane Gasoline RFG TowerLow Octane Gasoline ReformerHigh Octane Gasoline58% Conventional and NaphthaCARB Premium Medium/ DistillationHydrogen Heavy Distillate28% Distillate HS Kerosene/Jet FuelLS Kerosene/Jet Fuel Sour DesulfurizerJet Fuel Diesel CrudeHS Diesel/Heating OilLS Diesel/Heating OilHeating Oil HydrocrackerHydrocrackate Gasoline Light Gas Oil Ultra Low Sulfur Jet/Diesel LCOAlkylation UnitAlky Gasoline Fluid Catalytic Medium Gas Oil Cracker (FCC) Vacuum FCC Gasoline Unit Heavy 15% Fuel Oil & DelayedOther Heavy Fuel OilCoke Coker 108% Total Yield Complex refineries can run heavier and more sour crudes while achieving the highest light product yields and volume gain

Fluidized Catalytic Cracker

Hydrocracker Reactors

Delayed Coker Superstructure holds the drill and drill stem Fluid Coker — Benicia while the coke is forming in the drum

Need conversion capacity to capitalize on sour crude discounts •Hydroskim — Breakeven or moderate margins; High resid yield When margins are positive — increase crude runs When margins are negative — decrease crude runs •Cracking — Better margins; Lower resid yield •Coking — Best margins; Lowest resid yield Maximize heavy crudes

Objective Remove sulfur from light products (gasoline or diesel) to meet air quality requirements for clean burning fuels

Objective Value added upgrading of high sulfur distillates to low sulfur gasoline and ultra low sulfur jet/diesel to meet air quality requirements for clean burning fuels

Throughput capacities in thousand barrels per day; Excludes 165,000 bpd Lima, Source: Company reports; VLO figures exclude Lima, OH refinery OH refinery 3.1 million barrels per day of High-complexity system and throughput capacityleader in conversion capacity •Scale helps mitigate effect of specific • Enables us to convert more low-outagesquality, discounted feedstocks into Geographically diverse high-quality products •Valero participates in four key regions Refining system designed for feedstock flexibility Optimization among regional refining systems• Increased variety of heavy sour and resid feedstocks from 27 in 2002 to 40 in 2006

Continued commitment to OSHA’s Voluntary Protection Program (VPP) •VPP is a recognized OSHA program for excellence in safety •Valero has 11 of only 23 VPP Star Sites in the U.S. New Process Safety Management (PSM) initiative underway •Created VP position in Operations to focus efforts on safety •Achieve best-in-class PSM at all our facilities

Doug Comeau Vice President and General Manager Benicia Refinery

Built by Exxon in 1969 on the site of the former Benicia Army Arsenal Significant modifications and upgrades have made the refinery one of the most complex and profitable refineries in the United States Valero acquired the refinery in 2000 and has made additional improvements since that time Valero acquired Huntway Refining Company in 2001

Recognized as an OSHA VPP Star Site September 2006 Total throughput of 170,000 bpd Primary products include “CARBOB” gasoline, diesel, jet fuel, LPG, fuel oil and asphalt High conversion operation 70%+ gasoline yield Located on 425 acres with 475 acre buffer zone Staffed by 480 full-time employees 200 continuing service contractors

Crude slate includes Alaska North Slope (ANS), San Joaquin Valley (SJV) and a wide variety of other crudes •80% received by ship across Refinery docks •20% received by pipeline Shifting crude slate •When acquired in 2000, 80% of Benicia’s crude was ANS •Today, less than 40% ANS Versatile, high-conversion facility with ability to process heavy, sour crudes •35% heavy sour, 47% medium/light sour, 2% acidic sweet, 16% other Capable of processing imported intermediate feedstocks Primary utilities used include natural gas, electric power and fresh water

California gasoline — “CARBOB” •80% CARBOB distributed through pipeline system •20% finished gasoline blended at Refinery terminal Major supplier of Military jet fuel in northern California (pipeline) Refinery also produces EPA diesel fuel (pipeline) •Ultra Low Sulfur Diesel (ULSD) Unit nearing completion Flexible light-ends system allows for a variety of propane and butane dispositions and minimizes external natural gas purchases (LPG’s shipped by rail and truck) Benicia Asphalt Plant supplies 25% of northern California asphalt market (shipped by truck)

$484 MM invested in capital improvements and $233 MM for turnaround maintenance at Benicia since Valero acquisition Ultra Low Sulfur Diesel Unit (ULSD) — $105 MM Constructing New Crude Tanks (2 — 650 MB) — $60 MM Major plant-wide turnaround completed in 4Q2004 Alky expansion project commissioned in the 1Q2004 -eliminated need to export pentanes or import high octane, low vapor pressure blendstocks — $25 MM MTBE phase-out 2003 — $25 MM 51 MW cogeneration facility completed in 2002 — $60 MM

Valero Improvement Project (VIP) development under way for 2010 turnaround and beyond •Crude “Sour-up” to reduce dependence on ANS New desalter Sulfur removal and sulfur recovery capacity improvements •Flue gas scrubber for Coker and FCC •New hydrogen manufacturing unit Improved energy efficiency Greenhouse Gas (GHG) reduction

Depending on refinery configuration, CARBDepending on refinery configuration, CARB gasoline pool could be reduced by 2% to 4%gasoline pool could be reduced by 2% to 4% net of ethanol net of ethanol Model changes drive increase in ethanol content from 5.7% to 10% by volume Sulfur content must be reduced to accommodate NOx increases from ethanol Sulfur reductions require additional hydrotreating of FCC gasoline Aromatics change reduces reformate blending and FCC gasoline cut points, which increases need for alkylate and raffinate

Appendix

Definition •Separating crude oil into different hydrocarbon groups •The most common means is through distillation Process •Desalting — Prior to distillation, crude oil is often desalted to remove corrosive salts as well as metals and other suspended solids. •Atmospheric Distillation — Used to separate the desalted crude into specific hydrocarbon groups (straight run gasoline, naphtha, light gas oil, etc.) or fractions. •Vacuum Distillation — Heavy crude residue (“bottoms”) from the atmospheric column is further separated using a lower-pressure distillation process. Means to lower the boiling points of the fractions and permit separation at lower temperatures, without decomposition and excessive coke formation.

Definition •“Cracking” or breaking down large, heavy hydrocarbon molecules into smaller hydrocarbon molecules thru application of heat (thermal) or through the use of catalysts Process •Coking — Thermal non-catalytic cracking process that converts low value oils to higher value gasoline, gas oils and marketable coke. Residual fuel oil from vacuum distillation column is typical feedstock. •Visbreaking — Thermal non-catalytic process used to convert large hydrocarbon molecules in heavy feedstocks to lighter products such as fuel gas, gasoline, naphtha and gas oil. Produces sufficient middle distillates to reduce the viscosity of the heavy feed. •Catalytic Cracking — A central process in refining where heavy gas oil range feeds are subjected to heat in the presence of catalyst and large molecules crack into smaller molecules in the gasoline and surrounding ranges. •Catalytic Hydrocracking — Like cracking, used to produce blending stocks for gasoline and other fuels from heavy feedstocks. Introduction of hydrogen in addition to a catalyst allows the cracking reaction to proceed at lower temperatures than in catalytic cracking, although pressures are much higher.

Definition •Linking two or more hydrocarbon molecules together to form a large molecule (e.g. converting gases to liquids) or rearranging to improve the quality of the molecule Process •Alkylation — Important process to upgrade light olefins to high-value gasoline components. Used to combine small molecules into large molecules to produce a higher octane product for blending with gasoline. •Catalytic Reforming — The process whereby naphthas are changed chemically to increase their octane numbers. Octane numbers are measures of whether a gasoline will knock in an engine. The higher the octane number, the more resistance to pre or self-ignition. •Polymerization — Process that combines smaller molecules to produce high octane blending stock. •Isomerization — Process used to produce compounds with high octane for blending into the gasoline pool. Also used to produce isobutene, an important feedstock for alkylation.

Definition •Processing of petroleum products to remove some of the sulfur, nitrogen, heavy metals, and other impurities Process •Catalytic Hydrotreating, Hydroprocessing, sulfur/metals removal — Used to remove impurities (e.g. sulfur, nitrogen, oxygen and halides) from petroleum fractions. Hydrotreating further “upgrades” heavy feeds by converting olefins and diolefins to parafins, which reduces gum formation in fuels. Hydroprocessing also cracks heavier products to lighter, more saleable products.

AGO — Atmospheric Gas Oil kVA — Kilovolt Amp ATB — Atmospheric Tower Bottoms LCO — Light Cycle Oil B-B — Butane-Butylene Fraction LGO — Light Gas Oil BBLS — Barrels LPG — Liquefied Petroleum Gas BPD — Barrels Per Day LSD — Low Sulfur Diesel BTX — Benzene, Toluene, Xylene LSR — Light Straight Run (Gasoline) CARB — California Air Resource Board MON — Motor Octane Number CCR — Continuous Catalytic Regenerator MTBE — Methyl Tertiary-Butyl Ether DAO — De-Asphalted Oil MW — Megawatt DCS — Distributed Control Systems NGL — Natural Gas Liquids DHT — Diesel Hydrotreater NOX — Nitrogen Oxides DSU — Desulfurization Unit P-P — Propane-Propylene EPA — Environmental Protection Agency PSI — Pounds per Square Inch ESP — Electrostatic Precipitator RBOB — Reformulated Blendstock for Oxygen Blending FCC — Fluid Catalytic Cracker RDS — Resid Desulfurization GDU — Gasoline Desulfurization Unit RFG — Reformulated Gasoline GHT — Gasoline Hydrotreater RON — Research Octane Number GOHT — Gas Oil Hydrotreater RVP — Reid Vapor Pressure GPM — Gallon Per Minute SMR — Steam Methane Reformer (Hydrogen Plant) HAGO — Heavy Atmospheric Gas Oil SOX — Sulfur Oxides HC U — Hydrocracker Unit SRU — Sulfur Recovery Unit HDS — Hydrodesulfurization TAME — Tertiary Amyl Methyl Ether HDT — Hydrotreating TAN — Total Acid Number HGO — Heavy Gas Oil ULSD — Ultra-low Sulfur Diesel HOC — Heavy Oil Cracker (FCC) VGO — Vacuum Gas Oil H2 — Hydrogen VOC — Volatile Organic Compound H2S — Hydrogen Sulfide VPP — Voluntary Protection Program HF — Hydroflouric (adic) VTB — Vacuum Tower Bottoms HVGO — Heavy Vacuum Gas Oil WTI — West Texas Intermediate kV — Kilovolt WWTP — Waste Water Treatment Plant

Statements contained in this presentation that state the Company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” and other similar expressions identify forward-looking statements. It is impor tant to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission, and available on Valero’s website at www.valero.com.