Storm Hits Texas Energy Sector
Hurricane Beryl struck the U.S. Gulf Coast, impacting Texas’s crucial energy industry. The storm, with winds of 80 mph, made landfall near Matagorda, Texas, on Monday morning. Initially a Category 1 hurricane, Beryl was downgraded to a tropical storm by mid-morning. It is expected to move across eastern Texas and into the Lower Mississippi Valley and Ohio Valley later this week, according to the U.S. National Hurricane Center.
Effect on Oil and Gas Production
Texas, the largest U.S. oil and gas producer, saw significant disruptions. U.S. crude futures dropped 83 cents to $82.33 a barrel on Monday due to eased global supply concerns from a potential ceasefire in Gaza. Fuel futures also declined as major Gulf Coast refineries reported minimal storm impacts. Despite the storm’s path through production hubs, regional supply disruptions appear minimal. Phillips 66’s Sweeny, Texas, refinery and other facilities reported continued operations.
Widespread Power Outages
Over 2.7 million homes and businesses in Texas lost power by Monday afternoon, according to PowerOutage.us. CenterPoint Energy, serving southern and eastern Texas, reported 2.2 million customers without electricity, warning outages could last several days. Houston faced heavy winds, flooding streets and waterways, with at least two fatalities reported due to falling trees.
Port and Terminal Operations
The ship channel leading to the Port of Corpus Christi, a major crude oil export hub, reopened Monday afternoon without significant storm damage. The port had closed on Sunday, but vessel traffic resumed by Monday. Gibson Energy and Enbridge reported their Corpus Christi export terminals were operational. The Port of Houston remained closed for assessment and repairs, impacting some vessels stranded off Galveston.
Offshore Production and Refinery Status
Shell and Chevron shut production and evacuated personnel from Gulf of Mexico platforms, which produce 1.8 million barrels per day of oil, around 14% of U.S. output. The exact production impact remains unclear. Freeport LNG ramped down operations over the weekend and will resume post-storm. Formosa Plastics temporarily shut down operations at its Point Comfort facility. Citgo Petroleum reduced production at its Corpus Christi plant, while Marathon Petroleum, Chevron, and LyondellBasell did not comment on their refinery statuses.
Texas’s energy sector faces significant challenges following Hurricane Beryl. While initial reports suggest minimal long-term damage, widespread power outages and operational disruptions underscore the need for robust energy infrastructure and disaster preparedness.
Source：hindustantimes.com
