UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
   King, Gregory C.
   One Valero Place
   San Antonio, TX  78212
   USA
2. Issuer Name and Ticker or Trading Symbol
   Valero Energy Corporation
   VLO
3. IRS or Social Security Number of Reporting Person (Voluntary)

4. Statement for Month/Year
   01/22/03
5. If Amendment, Date of Original (Month/Year)

6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
   ( ) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
   (specify below)
   Executive Vice President and General Counsel
7. Individual or Joint/Group Filing (Check Applicable Line)
   (X) Form filed by One Reporting Person
   ( ) Form filed by More than One Reporting Person


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 Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned                                                 |
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1. Title of Security       |2.    |3.    |4.Securities Acquired (A)         |5.Amount of        |6.Dir |7.Nature of Indirect       |
                           | Transaction |  or Disposed of (D)              |  Securities       |ect   |  Beneficial Ownership     |
                           |      |      |                                  |  Beneficially     |(D)or |                           |
                           |      |    | |                  | A/|           |  Owned at         |Indir |                           |
                           | Date |Code|V|    Amount        | D |    Price  |  End of Month     |ect(I)|                           |
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Common Stock, $.01 par valu|01/23/|A   | |1,318             |A  |           |                   |      |                           |
e (bonus shares)           |03    |    | |                  |   |           |                   |      |                           |
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Common Stock, $.01 par valu|01/23/|F   | |527               |D  |$36.065    |                   |      |                           |
e (tax withholding from bon|03    |    | |                  |   |           |                   |      |                           |
us shares)                 |      |    | |                  |   |           |                   |      |                           |
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Common Stock, $.01 par valu|01/22/|M   | |5,000             |A  |           |                   |      |                           |
e (settlement of '00 perfor|03    |    | |                  |   |           |                   |      |                           |
mance shares)              |      |    | |                  |   |           |                   |      |                           |
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Common Stock, $.01 par valu|01/22/|M   | |4,001             |A  |           |                   |      |                           |
e (settlement of '01 perfor|03    |    | |                  |   |           |                   |      |                           |
mance shares)              |      |    | |                  |   |           |                   |      |                           |
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Common Stock $.01 par value|01/22/|M   | |5,501             |A  |           |                   |      |                           |
 (settlement of '02 perform|03    |    | |                  |   |           |                   |      |                           |
ance shares)               |      |    | |                  |   |           |                   |      |                           |
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Common Stock, $.01 par valu|01/23/|F   | |5,807             |D  |$36.065    |52,186             |D     |                           |
e (tax withholding for perf|03    |    | |                  |   |           |                   |      |                           |
.. share settlement)        |      |    | |                  |   |           |                   |      |                           |
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                           |      |    | |                  |   |           |2,266.9876         |I     |plans                      |
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___________________________________________________________________________________________________________________________________
 Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned                                                   |
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1.Title of Derivative |2.Con-  |3.   |4.    |5.Number of De |6.Date Exer|7.Title and Amount  |8.Price|9.Number    |10.|11.Nature of|
  Security            |version |Transaction | rivative Secu |cisable and|  of Underlying     |of Deri|of Deriva   |Dir|Indirect    |
                      |or Exer |     |      | rities Acqui  |Expiration |  Securities        |vative |tive        |ect|Beneficial  |
                      |cise    |     |      | red(A) or Dis |Date(Month/|                    |Secu   |Securities  |(D)|Ownership   |
                      |Price of|     |      | posed of(D)   |Day/Year)  |                    |rity   |Benefi      |or |            |
                      |Deriva- |     |      |               |Date |Expir|                    |       |ficially    |Ind|            |
                      |tive    |     |      |           | A/|Exer-|ation|   Title and Number |       |Owned at    |ire|            |
                      |Secu-   |     |    | |           | D |cisa-|Date |   of Shares        |       |End of      |ct |            |
                      |rity    |Date |Code|V|  Amount   |   |ble  |     |                    |       |Month       |(I)|            |
___________________________________________________________________________________________________________________________________|
                                                                            
Performance shares (aw|(1)     |01/22|A   | |15,000     |A  |(1)  |01/20|Common Stock|(1)    |       |15,000      |D  |            |
ard)                  |        |/03  |    | |           |   |     |06   |            |       |       |            |   |            |
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Performance Shares (se|(2)     |01/22|M   | |3,333      |D  |01/22|01/20|Common Stock|5,000 (|       |0           |D  |            |
ttlement of '00 award)|        |/03  |    | |           |   |/03  |03   |            |2)     |       |            |   |            |
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Performance Shares (se|(2)     |01/22|M   | |2,667      |D  |01/22|01/20|Common Stock|4,001 (|       |2,666       |D  |            |
ttlement of '01 award)|        |/03  |    | |           |   |/03  |04   |            |2)     |       |            |   |            |
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Performance Shares (se|(2)     |01/22|M   | |3,667      |D  |01/22|01/20|Common Stock|5,501 (|       |7,333       |D  |            |
ttlement of '02 award)|        |/03  |    | |           |   |/03  |05   |            |2)     |       |            |   |            |
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                      |        |     |    | |           |   |     |     |            |       |       |            |   |            |
___________________________________________________________________________________________________________________________________|

Explanation of Responses:
(1) Award of performance shares under the Valero Energy Corporation 2001
Executive Stock Incentive Plan.  The
performance shares vest incrementally over a three year period and are payable
in common stock in amounts
ranging from zero to 200 percent of the performance
shares.
(2) Settlement of performance shares at 150% of base
shares.
SIGNATURE OF REPORTING PERSON
J. Stephen Gilbert as Attorney-in-Fact for Gregory C. King
DATE
01/24/03