Texas Oil Firms Resume Operations After Hurricane Beryl By Investing.com

Texas Oil Firms Resume Operations After Hurricane Beryl By Investing.com
Texas Oil Firms Resume Operations After Hurricane Beryl By Investing.com

After Hurricane Beryl made landfall in Texas, oil and gas companies began to resume operations. The hurricane, which struck near Matagorda with winds reaching 80 miles per hour, shut down energy operations and closed the state’s largest ports and shipping channels. Despite the harsh weather conditions, the impact on oil and gas production is expected to be minimal.

Ports are expected to reopen today, and several generators and facilities are increasing production after proactively reducing operations. Power restoration, however, is progressing slowly, affecting homes, businesses and industrial customers.

As of the end of the day Monday, about 2.8 million customers were without power in Texas, including about 2 million from CenterPoint Energy, the state’s main utility. CenterPoint Energy said the hurricane caused “widespread power outages” and that restoring service could take several days due to the intensity of the storm.

Texas, the largest oil and gas producing state in the United States, plays a vital role in the country’s energy sector, contributing 40% of oil production and 20% of gas production. It is also a key hub for shipping and refining. As a result, weather-related disruptions can potentially affect crude and fuel production levels, as well as imports and exports.

Flooding in urban areas is expected to ease as waters recede from the hurricane’s heavy rains, which exceeded 11 inches in some areas south of Houston. Most refineries in Houston and Texas City are equipped to continue operations in the event of heavy rain, but prolonged power outages could cause operational difficulties.

Phillips 66 (NYSE:) confirmed Monday that its refineries in Lake Charles, Louisiana, and Sweeny, Texas, were powered and operational. Citgo Petroleum temporarily cut production over the weekend at its Corpus Christi plant, which has a capacity of 165,000 barrels per day. Formosa Plastics also reported temporarily shutting down its Point Comfort plant Monday.

The Port of Corpus Christi resumed shipping Monday afternoon. However, the Port of Houston announced that its terminals would remain closed today after an initial assessment of its facilities and systems.

Freeport LNG, the third-largest liquefied natural gas facility in the United States, has not issued an update on its status since announcing a production cut on Sunday.

The U.S. National Hurricane Center said Monday that Beryl is expected to gradually weaken and become a tropical depression. The storm is expected to move north-northeast, crossing the Mississippi Valley and the Ohio Valley in the coming days.

Reuters contributed to this article.

This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&C.

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