The stock closed down 1.46% with the S&P down 2.79%.
First up Reuters:
Valero weighs options for Californian refineries
* Valero CEO mum on details about California options * Gasoline prices expected to rise due to state policies
Valero Energy Corp's chief executive said on Tuesday the independent refiner was weighing options for its two California refineries due to the state's economic policies. "We think their policies turn their back on the negative economic impacts," Valero CEO Bill Klesse said in a conference call with Wall Street analysts when asked about a carbon cap-and-trade plan recently adopted by California. "As for us, we're looking at our options," Klesse said. He declined to provide further detail on what options Valero may be considering. Policies adopted by the California Air Resources Board to implement the state's anti-greenhouse gas law, including the cap-and-trade plan, could add up to 33 cents to the price of a gallon of gasoline in California in the coming years, according to an industry analyst. "There's no question the CARB rules are going to dramatically increase the cost of energy in California," said David Hackett, president of Stillwater Associates of Irvine, California. "Klesse's the only guy talking about it."...MORE
From the AP:
On the Call: Valero CEO on Calif. cap and trade
On the Call: Valero CEO Klesse says Calif. cap-and-trade system will ruin economyLast month, California adopted a cap-and-trade system that promises to reduce emissions of greenhouse gases.
The program targets oil refineries and other large companies that emit carbon dioxide and other pollutants as part of their manufacturing process. The new system will require them to buy permits to release those gases, and it will cut the amount allowed over time in hopes of motivating them to run a cleaner operation.
The system, which was adopted by the California Air Resources Board, has been widely criticized by the business community. Businesses say the program will make it too expensive to operate in California and will force many to leave. Valero Energy Corp., America's largest oil refiner, said Tuesday it is studying the new system. The company hasn't ruled out moving operations to another state.
On a conference call Friday, CEO Bill Klesse was asked how California's cap-and-trade system would affect the economy.
QUESTION: How will California's new cap-and-trade regulations affect you?Finally the AP with the earnings:
ANSWER: "They adversely affect jobs. They adversely affect consumer ... We are hopeful that the voters, which are consumers, will eventually realize these policies are economically ruining the state.... The people of California are going to pay."
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