Texas oil companies resume operations after Hurricane Beryl – 07/09/2024 at 14:07

Texas oil companies resume operations after Hurricane Beryl – 07/09/2024 at 14:07
Texas oil companies resume operations after Hurricane Beryl – 07/09/2024 at 14:07

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

(Texas Power Outage Update, Operations Details at Various Power Facilities, Beryl Weakening) by Marianna Parraga, Arathy Somasekhar, and Erwin Seba

Texas oil and gas companies resumed operations Tuesday after Hurricane Beryl swept through the state with 80 mph winds, damaging property and knocking out power to millions.

Beryl made landfall early Monday near the coastal city of Matagorda. Some energy companies shut down operations ahead of its arrival, and Texas’ largest ports and shipping channels were closed. However, its impact on oil and gas production is expected to be minor.

On Tuesday, ports were set to reopen and some generators and facilities were ramping up production after reducing processing as a precaution. Some have been constrained by the slow restoration of power to homes, businesses and industrial customers.

About 2.2 million customers were still without power in Texas as of early Tuesday, including 1.8 million served by the state’s main electricity provider, CenterPoint Energy CNP.N, according to PowerOutage.us.

That figure is more than double the number of customers who lost power in May, when a severe weather event with high winds hit Houston. It took more than a week for those outages to be resolved in some parts of the city.

CenterPoint, which said the hurricane caused “widespread power outages,” warned customers that power outages could last for several days due to the severity of the storm.

FLOODS WILL EASE

Texas is the largest oil and gas producing state in the United States, with approximately 40% of oil production and 20% of gas production, and is also a major hub for shipping and refining. Any weather-related disruptions could impact crude and fuel production levels, as well as imports and exports ( ).

However, flooding in urban areas is expected to ease as water has begun to recede rapidly following Beryl’s heavy rainfall, which exceeded 11 inches in some areas south of Houston.

Most refineries in Houston and Texas City are designed to continue operating even during heavy rains, but experts say some of those facilities, ports and other energy infrastructure could experience problems during prolonged power outages.

Citgo Petroleum temporarily cut production at its 165,000 bpd Corpus Christi plant over the weekend.

Marathon Petroleum Corp MPC.N began preparing on Monday to restart several units at its 631,000-bpd Galveston Bay oil refinery in Texas City, while Phillips 66

PSX.N said units at its 265,000 bpd Sweeny refinery were operating normally after some disruptions caused by Beryl.

Formosa Plastics said Monday it has temporarily shut down operations at its Point Comfort plant.

Shell SHEL.L and Chevron CVX.N have begun redeploying personnel evacuated from their platforms in the Gulf of Mexico.

The Port of Corpus Christi reopened to shipping Monday afternoon, but the Port of Houston said its terminals would remain closed Tuesday after conducting a preliminary assessment of facilities and systems.

Freeport LNG, the third-largest liquefied natural gas facility in the United States, has not provided an operational update since it said it had cut production on Sunday.

Beryl weakened to a tropical depression late Tuesday, the U.S. National Hurricane Center said. The storm will bring heavy rainfall and possible flash flooding from the lower and middle Mississippi Rivers to the Great Lakes Tuesday and Wednesday.

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