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): March 30, 2004


VALERO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)

Delaware	1-3175	74-1828067
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

One Valero Place
San Antonio, Texas	78212
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (210) 370-2000

Item 7.   Financial Statements and Exhibits.

(c)	Exhibits.
99.1	Slide presentation given by executives of Valero Energy Corporation on March 30, 2004.

Item 9.   Regulation FD Disclosure.

        On March 30, 2004, executives of Valero Energy Corporation (the “Company”) presented to certain investors at the Howard Weil Energy Conference the information about the Company described in the slides attached to this report as Exhibit 99.1. Exhibit 99.1 and the slides thereof are incorporated by reference herein. These slides will be available on the Company’s website at www.valero.com at the time of the presentation on March 30, 2004. The information in Item 9 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 9 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.

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SIGNATURE

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

	VALERO ENERGY CORPORATION
Date:  March 30, 2004	By:	/s/ Jay D. Browning
		Jay D. Browning
		Vice President and Secretary

3

EXHIBIT INDEX

Number	Exhibit
99.1	Slide presentation given by executives of Valero Energy Corporation
	on March 30, 2004.

4

EX-99.1

1

Howard Weil

Energy Conference

Greg King, President

March 30, 2004

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.  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.

Safe Harbor Statement

2

2003 Accomplishments

Record net income -- $622 million

  $390 million of operating income from Canadian   operations

Reduced debt-to-cap ratio from 50% to 40%

  53.4% at time of UDS acquisition

Acquired St. Charles refinery in July

Commissioned coker at Texas City in October

Great year for retail and wholesale businesses

3

Acquisition of Aruba Refinery

Completed acquisition on March 5 for $465 million plus
162 million for working capital

Financed with $406 million equity and $221 million    cash and debt

315,000 BPD heavy sour crude oil refinery

Replacement cost of $2.4 billion

  $640 million invested since 1998

  Produces distillates and intermediate feedstocks

Profitable related businesses

Aruba Marine and Bunkering

  Marketing assets

Improving reliability and profitability

Proven track record at St. Charles refinery

4

-1.00

1.00

3.00

5.00

7.00

9.00

11.00

13.00

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

New Era for Refining

Over $5.00/bbl
2% of time

Over
$5.00/bbl
30% of time

Gulf Coast 3-2-1 Refining Margin (1992-2004)

  Times have changed since the ’90s

Structural changes in refining industry

Source: Simmons & Company/Valero Research

5

U.S. Gasoline Demand
vs. Production

Gap must be
met by imports

Production

Demand

Gasoline Demand Outpacing Domestic Supply

Demand growing

Supply impacted by

Tier II sulfur specs

MTBE Phase-outs

Gap between U.S.
demand and
production continues
to widen

Higher margins needed to attract additional supplies to meet U.S. demand

7400

7600

7800

8000

8200

8400

8600

8800

9000

1995

1997

1999

2001

2003

6

U.S./Global Demand Growth

  U.S. economy growing

  Increasing number of SUVs
on the road

  More miles driven

  Gasoline demand growing
1-2% per year (up 1.7% YTD)

  Nearly all key global regions experiencing strong
economic growth

  China economy booming

  Economy grew by 9% in ’03; expect 8.2% growth in ’04

  China automobile ownership jumped 60% in ’03

7

Refined Product Fundamentals

U.S. Gasoline Days of Supply

U.S. Distillate Days of Supply

Record low

Fairly balanced

2003

2004

5 yr avg

U.S.G.C. gasoline margins
$7.75 per bbl QTD

  Currently $11.00 per bbl

  Full year forward curve
around $7.50 per bbl

40% of 2004 distillate
production hedged at  
$4.20 per bbl NYMEX

  Full year forward curve
around $3.75 per bbl
NYMEX

20

21

22

23

24

25

26

27

28

29

30

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

8

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Positive Sour Crude Outlook

WTI vs Sour Crude Basket,  $/bbl

(50% Arab Medium and 50% Arab Light)

WTI vs GC Maya (FOB), $/bbl

  Sour crude discounts
at attractive levels

  Expected to continue

Low-sulfur specs
increasing demand for
sweet crude

  Residual fuel oils at
depressed price levels

  Growing production of
low-quality crude oils

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2003

2004

5 yr avg

9

Product margins

Expected to be around
$1.25 perbbl higher than 2003

Sour crude discounts

Expected to widen
$1.00per bbl vs. 2003

Throughput volumes

Projected to be 350
MBPD higher than 2003

Off to a great start

Comfortable with 1Q04
First Call Consensus

Full year 2004 First Call  
Consensus too low

2004 Looking Better Than 2003

New Texas City Coker

10

$1,640

(Dollars in Millions)

$1,110

$1,620

$1,320

$910

Investing for the Future

  Tier II investments expected to be $1.5 billion

  Strategic projects to increase leverage to sour crudes and clean fuels

  Significant increase in free cash flow in 2006

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Well Positioned for the Future

  For refiners who have invested, future has
never looked better

  Strong margins and wider sour crude discounts a powerful combination for Valero

  Valero already in strong financial position

  Solid financial ratios

  Conservative capital structure

  Valero has all the advantages

   Most refining capacity

   Highest complexity

   Highest leverage to sour crude oil

   Best geographic diversity

   Best employees in the industry

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