Valero Energy (VLO) 10-Q 2008 Q2 Quarterly report

Exhibit 12.01

VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED
CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(Millions of Dollars)

	Six Months
	Ended			Year Ended December 31,
	June 30,
	2008			2007			2006			2005			2004			2003
Ratio of Earnings to Fixed Charges:
Earnings:
Income from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, distributions on preferred securities of subsidiary trusts, and income from equity investees		$ 1,474			$ 6,743			$ 7,872			$ 5,013			$ 2,726			$ 981
Add:
Fixed charges		324			658			566			474			410			396
Amortization of capitalized interest		9			15			9			8			7			6
Distributions from equity investees		-			-			47			50			42			26
Less:
Interest capitalized		(43	)		(107	)		(165	)		(66	)		(37	)		(26	)
Distributions on preferred securities of subsidiary trusts		-			-			-			-			-			(17	)
Minority interest in net income of
NuStar Energy L.P.		-			-			-			-			-			(2	)
Total earnings		$ 1,764			$ 7,309			$ 8,329			$ 5,479			$ 3,148			$ 1,364
Fixed charges:
Interest expense, net		$ 180			$ 359			$ 212			$ 268			$ 260			$ 261
Interest capitalized		43			107			165			66			37			26
Rental expense interest factor (1)		101			192			189			140			113			92
Distributions on preferred securities of subsidiary trusts		-			-			-			-			-			17
Total fixed charges		$ 324			$ 658			$ 566			$ 474			$ 410			$ 396
Ratio of earnings to fixed charges		5.4	x		11.1	x		14.7	x		11.6	x		7.7	x		3.4	x
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:
Total earnings		$ 1,764			$ 7,309			$ 8,329			$ 5,479			$ 3,148			$ 1,364
Total fixed charges		$ 324			$ 658			$ 566			$ 474			$ 410			$ 396
Preferred stock dividends		-			-			3			20			19			7
Total fixed charges and preferred stock dividends		$ 324			$ 658			$ 569			$ 494			$ 429			$ 403
Ratio of earnings to fixed charges and preferred stock dividends		5.4	x		11.1	x		14.6	x		11.1	x		7.3	x		3.4	x

(1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.