The U.S. Coast Guard is issuing warnings about potential port closures along the Texas coast due to the looming threat of Tropical Storm Beryl, which is expected to become a hurricane before making landfall. The storm is predicted to hit south of Port Lavaca by Monday morning, prompting concerns about disruptions to oil shipments to refineries and fuel distribution from those plants.
Port condition “yankee” has been declared by the captain of the port of Corpus Christi, leading to restrictions on vessel movement and cargo operations from the Colorado Locks to the U.S.-Mexico border. Oil producer Shell Plc has evacuated workers from its Perdido production platform in the Gulf of Mexico as a precautionary measure. Production at the platform has been halted, and workers from the Whale platform have also been evacuated.
Gibson Energy, which operates a major oil terminal in Corpus Christi, has stated that operations are ongoing, but further actions may be taken based on the storm’s trajectory. The center of Tropical Storm Beryl is anticipated to reach the Texas coast on Sunday and make landfall on Monday with sustained winds of around 60 mph.
Although Corpus Christi may experience the least severe impact of the storm, the Coast Guard is taking precautions to restrict traffic and potentially close the port due to the possibility of gale-force winds. While most of the Gulf’s offshore oil and gas production is situated east of the storm’s projected path, the Port Lavaca area plays a vital role in industrial and petrochemical activities, including onshore drilling sites and oil wells.
The U.S. Gulf of Mexico contributes approximately 1.8 million barrels per day to the country’s total oil output, making up about 14% of the production. Any disturbances in the region could lead to increased prices for U.S. oil and offshore crude grades. Chevron Corp, one of the prominent offshore producers, has stated that production remains unaffected at its operated assets, but nonessential personnel have been evacuated from certain facilities in the Gulf of Mexico as a precautionary measure.
Murphy Oil Corp has indicated that production has not been shut down, and personnel have not been evacuated yet, but the situation is being closely monitored. As the storm approaches, the oil and gas industry is bracing for potential disruptions and taking necessary steps to ensure the safety of personnel and assets while minimizing the impact on operations and supply chains.