Valero Energy (VLO) risk factors, FY2024 10-K

Risks Related to Our Business, Industry, and Operations

1. 01Our financial results are affected by volatile margins, which are dependent upon factors beyond our control, including the price of feedstocks and the market price at which we can sell our products
2. 02Industry, market, and other developments could decrease the demand for our products
3. 03We are subject to risks arising from sentiment towards climate-related matters, fossil fuels, GHG emissions, and other sustainability-related matters
4. 04We are subject to risks arising from the cost and availability of natural gas and electricity
5. 05We are subject to risks related to the costs and availability of our feedstocks and other critical supplies
6. 06exposure to political, geographic, regulatory, tax, and economic risks associated with international sourcing of supplies. Any such disruption to DGD’s feedstock supply could adversely impact its and our business, financial condition, results of operations, and liquidity
7. 07We are subject to risks arising from our refining and marketing operations outside of the U.S
8. 08We are subject to risks arising from transportation and logistics disruptions and availability
9. 09Competitors that produce their own supply of feedstocks, own their own retail sites, operate in different regions, or have greater financial resources may have a competitive advantage
10. 10We are subject to risks arising from an interruption in any of our refineries or plants
11. 11Large capital and other strategic projects can take many years to complete, and the legal regulatory, and political environments or other market conditions may change or deteriorate over time
12. 12Our investments in joint ventures and other entities decrease our ability to manage risk
13. 13We may incur losses and additional costs as a result of our hedging transactions

Legal, Government, and Regulatory Risks

1. 14We are subject to risks arising from legal, regulatory, and political developments regarding climate-related matters, GHG emissions, and the environment, or that are adverse to or restrict refining and marketing operations
2. 15and other U.S. states have also announced, adopted, or are considering, restrictions on the sale of new internal combustion engine vehicles, stricter tailpipe emissions standards, and/or limitations on or penalties on the use of certain petroleum-based products and biofuel feedstocks
3. 16We are subject to risks arising from the Renewable and Low-Carbon Fuel Programs, and other regulations, policies, international certifications, and standards impacting low-carbon fuels
4. 17Other applicable environmental, health, and safety laws and regulations expose us to various risks
5. 18We are subject to risks arising from litigation, government action, and mandatory disclosure rules related to climate-related and other sustainability-related matters, or aimed at the fossil fuel industry
6. 19We are subject to risks arising from compliance with and changes in tax laws

Cybersecurity and Privacy Related Risks

1. 20We are subject to risks arising from a significant breach of our information systems
2. 21Increasing legal and regulatory focus on data privacy and security issues could expose us to increased liability and operational changes and costs
3. 22Uncertainty and illiquidity in financial markets, or changes in our credit profile or ratings, can adversely affect our ability to obtain credit and capital, increase our costs, and limit our flexibility
4. 23We are subject to risks arising from severe weather events
5. 24Our business may be negatively affected by work stoppages, slowdowns, or strikes, as well as by new legislation or an inability to attract and retain sufficient labor, and increased costs related thereto
6. 25Our ability to adequately insure losses or liabilities arising from various hazards exposes us to risks