exv99w1

Exhibit 99.1

Lehman Brothers Energy/Power Conference September 5, 2007

Bill Klesse

Chairman and CEO

Refining Fundamentals Strong as Demand Keeps Growing

U.S. Demand Global Petroleum Demand

MMBPD MMBPD MMBPD 9.4 4.3 88 Gasoline 9.2 85

4.1 9.0 83

Distillate

8.8 80 3.9

8.6 78 8.4 3.7 75

2001 2002 2003 2004 2005 2006 2007E 2001 2002 2003 2004 2005 2006 2007E

Source: U.S. Department of Energy and Valero forecast Source: Industry reports and Valero forecast

Demand growth continues despite higher prices

· 2007 U.S. gasoline up 1.3%, distillate up 3.3% YTD

· Consumers resilient — U.S. gasoline spending approximately 3% of disposable income

Higher, but half the level experienced in 1979/1980

Global petroleum demand forecasted 1.9% higher, or 1.6 million barrels per day in 2007 Good economic growth in U.S, stronger economic growth worldwide

· Consensus estimates indicate above-average growth

· Asian demand continues growing, lead by China

Asian Petroleum Demand Increasing

MBPD Asian Crude Runs

23,000

2007

22,500
22,000

2006

21,500

2005

21,000 20,500 20,000 Jan Feb Mar Apr May Jun Jul ; Aug Sep Oct Nov Dec

Source: Industry reports

New Era of Refining Filled with Challenges

Operating costs higher More stringent More refining and increasingfuel units, more specifications complicated and operations regulations Construction Growth in costs higher variety of fuels and durations and longer blendstocks

Turnarounds

Alternative taking longer, fuels costing more

U.S. more

Logistics reliant on bottlenecks imports Recurring Mixed unplanned messages refinery from outages legislatures worldwide

Refining system less flexible, supply constrained Supports margins

Spare Global Refining Capacity Expected to Remain Tight

MMBPD

3.0

Petroleum Demand Growth CDU Capacity Growth 2.5

Conversion Capacity Growth

2 2.0 (FCC, HCU) 1.5 1.0 0.5 0.0 2004 2005 2006 2007E 2008E 2009E

Source: Industry reports and Valero forecast
¹Includes capacity creep; ²Conversion units (FCC, HCU) are primarily oriented to the production of light products

Refining conversion capacity not keeping up with demand growth

Refinery Downtime – Actual Exceeded Expectations

Total U.S. Fluidized Catalytic Cracker Outages Fall 2006 Fall 2007

MBPD Expected Actual Expected Actual (as of August 21, 2006) (as of August 23, 2007)

800
600

400 200 0 Sep-06 Oct-06 Nov-06 Sep-06 Oct-06 Nov-06 Sep-07 Oct-07 Nov-07 Sep-07 Oct-07 Nov-07 Planned + Unplanned Outages Planned Outages Source: Industry reports and Valero forecast 6

Strong Fundamentals Driving Refining Margins

Per Barrel 3/2/1 Crack Spreads

$25 Gulf Coast (WTI) East Coast (WTI) Mid-Cont (WTI)

$20

West Coast (ANS)

$15 $10 $5

$0 2001 2002 2003 2004 2005 2006 2007E

Sources: Historical data Platt’s; 2007 estimate based on historical data and Valero forecast Expect margins to remain high

· Capacity additions slow and costing much more

· New capital investment has expectations of high margins

Feedstock Discounts Favorable for Heavy Sour Refiners

Per Barrel Feedstock Discounts Estimated Quality of Reserves (2006)

$18

Maya vs. WTI $15

Mars vs. WTI $12 vs. LLS Light Sweet

20%

$9 High Acid

Sour 13% 66% $3 Heavy Sour $0 01 7 ²⁰ 2002 2003 2004 2005 2006 ⁰/₀

2007YTD 8/3

Sources: Platt’s Source: Oil & Gas Journal, Company Information

Expect low-quality crude oils and Reserves mainly sour and acidic crude feedstocks to continuing pricing at wide oils for long run discounts • Substantial medium sour reserves Strong demand for light, sweet crude oil • Canadian reserves primarily heavy and sour

· More stringent fuel specifications • Sweet (but higher TAN) West African crude

· High clean-product margins incrementally oil growth should begin to decline by end of justify sweet crude pricing decade

· Russian lights – higher sulfur

Canadian Heavy Sour Crude Oil Heading to Gulf Coast

MBPD Canadian Heavy Crude Supply

2,500 Canadian heavy sour supply rapidly increasing 2,000 Forecast to grow to 1mmbpd by 2015

1,500 1,000 500

2007 2009 2011 2013 2015

Source: CAPP

Multiple pipeline and

logistics projects in progress

Industry has 1,250 mbpd of coking capacity in Texas and Louisiana

• Valero has 230 mbpd of Gulf Coast coking capacity

Valero’s Strategy

Improve operations

• Achieve $1 billion in annual operating income improvements over next 5 years

Energy, mechanical reliability, and other operating expenses

• Higher performance expectations

Optimize portfolio

· Sold Lima, OH refinery

· Strategic asset review

Use balanced approach to allocate cash flow

• Dividends

· Share repurchase – expect $6 billion in 2007, continuing program

· Invest in value-added, growth projects at competitively advantaged refineries

Expansion with new hydrocrackers at Port Arthur and St. Charles; Gasifier; Bottoms upgrading

• Strategic acquisitions – continue looking for quality assets that meet our strategic criteria

2008 Capital Expenditures Budget Focused on Growth Projects and Improvements

Millions

$4,700 to $5,000

Budgeted $3,500 $1,970 to $2,270 Strategic $3,200

Tier II $990 $60

Sustaining/ Other $350 $1,650

Turnarounds $1,020

$440 Regulatory $480 $580 $360 2007E 2008E 1 ¹ 2008 estimated budget includes some projects not yet approved by Board of Directors 11

Major Growth Projects

IRR/ 2008 Total On- Annual Spend Cost Line EBITDA¹

Plant Project ($mm) ($mm) Date ($mm) Description

Crude throughput expansion – 75 mbpd New coker – 45 mbpd Port Crude/Coker/ >20% New hydrocracker – 50 mbpd $300 $1,750 2010 Arthur Hydrocracker $750 New distillate hydrotreater – 15 mbpd Upgrades high sulfur vacuum gas oil to ULSD

Crude unit expansion

– 50 mbpd Coker expansion – 10 mbpd

St. Crude/Coker/ >20% $305 $1,250 2010 New hydrocracker – 50 mbpd

Charles Hydrocracker $350

Eliminates vacuum gas oil exports Balances refinery New 30 mbpd ROSE unit and 30 mbpd ROSE/ >20% hydrocracker

Quebec $125 $900 2011

Hydrocracker $320 Increases bottoms destruction and feedstock flexibility

¹Based on average of prices for 2004 through 2006 12

Valero Working on Reliability

% Crude Unit Utilization

94 92 90 88

U.S. Average

Valero 84 82 80

Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07

Sources: DOE, Company reports

Excluding the McKee outage, main issues are

Issue Location Addressing

Fluid Cat Crackers St. Charles 2009 Memphis 2009 Coke Drums Port Arthur 2009 St. Charles 2009 Utilities and Water Aruba 2007/2008

Using Balanced Approach to Allocate Cash

Billions Cumulative Allocations 2005-2007E Returning cash to shareholders

$15

Buybacks in 2007

• Purchased 65 milli

on shares with

$10$ 4.5 billion YTD

Net Acquisitions and • Plan to meet $6 billion commitment
Growth Capital in 2007

• Potential share

count reduction of

Buybacks and Dividends 15% versus 2006

$0 • Year-end estimated fully diluted

2005 2006 2007E

sha

re count of 530 million

Millions Wtd. Avg. Diluted Shares Outstanding Dividends

670 650 • Increased twice in 2006 and by 50% 630 in 2007 610 • Goal is to pay dividends in-line with 590 peer group 570 Growth projects and acquisitions 550

Debt

530

6 6 6 7 • Intend to maintain investment grade

⁰ ⁰ ⁰⁰ E 7E Q05 ^1Q ^2Q ^3Q4Q06 1Q07 ^2Q ^{07 0}

⁴ ^{Q 4Q} rating

Valero Energy – The Best Value in Refining

Refining Industry

Strong fundamentals support high margin environment

• Longer than Wall Street expects

Valero Energy

Geographically diversified, high conversion assets Highly liquid stock Improving operations Investing for growth in EPS and cash flow per share Focused on shareholder value Doing what we said we’d do

GOAL – Become a better positioned, better performing, and more valuable company for the long-term

Appendix

Valero Operations Map

Quebec, Canada

· 215,000 bpd capacity Benicia, California

· 170,000 bpd capacity

Paulsboro, New Je

rsey

· 195,000 bpd capacity

Delaware City, Delaware Wilmington, California • 210,000 bpd capacity

· 135,000 bpd capacity

McKee, Texas

· 170,000 bpd capacity Memphis, Tennessee

· 195,000 bpd capacity Three Rivers, Texas

· 100,000 bpd capacity

Ardmore, Oklah

oma

· 90,000 bpd capacity

Corpus Christi, Texas

Valero Marketing • 340,000 bpd capacity Krotz Springs, Louisiana

Presence • 85,000 bpd capacity St. Charles, Louisiana

· 250,000 bpd capacity

Houston, Texas

· 130,000 bpd capacity Port Arthur, Texas Texas City, Texas

· 245,000 bpd capacity • 325,000 bpd capacity San Nicholas, Aruba

· 275,000 bpd capacity Capacity shown in terms of crude and feedstock throughput

Margins and Days of Supply

Gulf Coast Gasoline Margin (per bbl) Gulf Coast Diesel Margin (per bbl)

$40$ 20

$35 2007 2007 $30$ 15

2006 $25 2006

$20 $10 $15

$10$ 5 5-Yr Avg 5-Yr Avg $5 $0$ 0 Jan Apr Jul Oct Jan Apr Jul ; Oct

Source: Platts conventional unleaded 87; 2007 data through August 24 Source: Platts; 2007 data through August 24 = ULSD; Prior years data = LSD

26 Gasoline Days of Supply 38 Distillate Days of Supply

2006

25 36

2006

24 34 5-Yr Avg 5-Yr Avg 23 32 22 30

2007

21 28 2007

20 26 Jan Apr Jul Oct Jan Apr Jul ; Oct

Source: DOE; 2007 data through August 24 Source: DOE; 2007 data through August 24

Key Initiatives for Operating Income Improvements Mechanical AvailabilityEnergy EfficiencyNon-Energy OPEX PSM initiative Energy stewardship program Maintenance expense •System wide• System wide (2010)improvement FCCU/MSCC revamps Crude preheat and heater imp.• System wide •Memphis, Port Arthur, St. • Ardmore, Delaware City,• PSM initiative • Improved planning Charles (2009)Houston, Port Arthur, •Improved efficiency Coke drum / coker reliabilitySt. Charles, Texas City, •Wilmington (2009); Refinery staffing Texas City (2008); Port Benicia, Krotz Springs,• System wide Arthur, St. Charles, McKee (2010); Paulsboro• Accounting centralization Wilmington (2009) (2011)• Procurement centralization Boiler feedwater / utilities Boiler replacements / imp. •McKee, Texas City (2008); • Memphis, Three Rivers Houston, Memphis (2009); (2008); Delaware City, Delaware City (2010) Port Arthur (2009) Sulfur plant reliability New hydrogen plants •Quebec (2011) Sour waste stripper reliability• Corpus Christi (2008); Benicia (2010); •Delaware City (2009); Quebec (2011) Paulsboro (2011) 19

13,000 13,500 14,000 14,500 15,000 15,500 16,000 16,500 17,000 17,500 18,000 MBPD Jan-05 Feb-05 Sources: DOE, Valero estimatesMar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Non-crude CDU inputJan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06Crude Runs Sep-06Known CDU outagesU.S. Crude Runs Oct-06 Nov-06 Dec-06Non-utilized operational CDU capacity Jan-07 Feb-07 Mar-07 Apr-07 May-07Lower by End of Year Jun-07 Jul-07 Aug-07 Sep-07 Oct-07U.S. Crude Runs Expected to Be Estimated unplanned turnarounds and outagesNov-07Forecast Dec-07 20

Safe Harbor Statement

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 important 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.