Search our blog for articles and insights right here, just type your interest and dive into a world of knowledge.
Popular articles
Texas Oil and Gas Sector Starts Recovery Post-Hurricane Beryl
In the aftermath of Hurricane Beryl, which struck Texas with 80-mph winds and left millions without power, oil and gas companies are gradually resuming operations. The hurricane, making landfall near Matagorda early Monday, prompted some energy firms to halt activities and led to the closure of major ports and navigation channels. Despite the severe weather, the impact on oil and gas production is expected to be minimal. By Tuesday, ports were reopening, and producers were beginning to ramp up output after preventive cuts in processing, although efforts were hampered by slow power restoration.
Power Outages Persist
Approximately 2.8 million customers in Texas were without power late Monday, according to PowerOutage.us. CenterPoint Energy, the state's largest provider, reported that around 2 million of its customers were affected and warned that power interruptions could last several days due to the storm's severity. The outages far outstripped those seen in May when strong winds caused disruptions in Houston, some of which persisted for over a week.
Significance of Texas
Texas is a key player in the U.S. oil and gas industry, contributing about 40% of the nation's oil and 20% of its gas output. The state also serves as a critical hub for shipping and refining. Any weather-related disruptions can significantly impact production levels, imports, and exports. However, Beryl's 11-inch rainfall in regions south of Houston is rapidly receding, lessening the flooding impact.
Industry Responses
Houston and Texas City refineries are generally equipped to handle heavy rainfall, but prolonged power outages can cause operational issues. Phillips 66 confirmed that its refineries in Lake Charles, Louisiana, and Sweeny, Texas, were operational. However, Citgo Petroleum had to temporarily reduce production at its Corpus Christi plant. Formosa Plastics also temporarily shut down operations at its Point Comfort plant.
Port Operations
The Port of Corpus Christi reopened for ship navigation on Monday afternoon, but the Port of Houston's terminals remained closed on Tuesday for facility assessments. Freeport LNG, the third-largest liquefied natural gas facility in the U.S., had not updated its operational status since announcing a production scale-back on Sunday.
Storm Forecast
The U.S. National Hurricane Center stated that Beryl is expected to weaken into a tropical depression. The storm is predicted to move north-northeastward, accelerating across the lower Mississippi Valley into the Ohio Valley in the coming days.
