C A P I T A L D I S C I P L I N E , I N N O V A T I O N A N D U N M A T C H E D E X E C U T I O N
IN V E S T O R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N E W A B LE D IE S E L 2026
Agenda
1
Crude Oil Overview
2
Basics of Refining
3
Refinery Optimization and Economics
4
Basics of Renewable Diesel
IN V E S T O R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N E W A B LE D IE S E L 2026 2
Randy Hawkins
Vice President
Crude & Feedstocks - Supply & Trading.
IN V E S T O R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N E W A B LE D IE S E L 2026 3
Crude oil characteristics
Crude oils are blends of hydrocarbon molecules
Classified and priced by density, sulfur content and acidity
-
Density is commonly measured in API gravity (relative density of crude oil to water)
API > 10: lighter, floats on water
API < 10: heavier, sinks in water
-
Sulfur content is measured in weight percent
Less than 0.7% sulfur content = sweet
Greater than 0.7% sulfur content = sour
-
Acidity is measured by Total Acid Number (TAN)
High acid crudes are those with TAN greater than 0.7
Acidic crudes are corrosive to refinery equipment and require greater investment to process significant volumes
IN V E S T O R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N E W A B LE D IE S E L 2026
Heavy, sour, high acid crude oils are more difficult to process, but trade at a discount relative to light, sweet, low acid crudes oils4
Crude oil reserves and quality 1.73 Trillion Barrels of Oil Reserves
Asia Pacific 2.6%
Africa
Sour
4.0
Cold Lake
Crude Oil QualityMaya
WCS
Basrah
Majority of global reserves are sour crude oils
Middle East 48.3%
7.2%
Canada 9.7%
South & Central America 18.7%
U.S. 4.0%
Mexico 0.4%
3.0
Sulfur, wt%
2.0
1.0
Merey
Napo Castilla
Oriente
Mars
Arab Medium Southern Green
Arab Light
WTS
Eagle Ford
ANS
Bakken
WTI
WTI and Brent are the primary light
Europe 0.8%
0.0
Dalia Brent
Midland WTI Light
sweet crude
oil pricing
CIS (Russia & others) 8.4%
Sweet
10 20 30 40 50 60
Heavy Light
benchmarks
IN V E S T O R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N E W A B LE D IE S E L 2026
Source: Valero and industry reports. 5
IN V E S TO R PR E S E N TAT IO N | B A S IC S O F R E F IN IN G A N D R E N EWA B LE D IE S E L 2026