Tropical Storm Beryl is currently moving through the Gulf of Mexico, with projections indicating it could become a hurricane before making landfall at Port Lavaca by Monday morning. The US Coast Guard has issued warnings of possible port closures from Corpus Christi to Houston and started restricting vessel traffic in anticipation of the storm’s impact. This could temporarily disrupt shipments of crude oil to refineries and motor fuels from those plants.
In response to the approaching storm, several companies in the oil industry are taking precautionary measures. Citgo Petroleum Corp is reducing production at its Corpus Christi refinery, planning to operate at minimum capacity as Beryl approaches the Texas coast. Oil producer Shell Plc has evacuated workers from its Perdido production platform in the Gulf of Mexico and shut down production in preparation for the storm. Gibson Energy, which operates an oil terminal in Corpus Christi, stated that operations were ongoing but would take additional steps based on the weather forecast.
The National Hurricane Center has reported that Tropical Storm Beryl is currently moving with maximum sustained winds near 60 mph. Although the latest forecasts suggest Corpus Christi may experience minimal impacts from the storm, the Coast Guard is still taking precautions by restricting traffic and potentially closing the port due to the possibility of gale-force winds. The majority of the offshore oil and gas production in the northern Gulf is located east of Beryl’s projected path, but any disruption in supplies could result in an increase in oil prices.
The U.S. Energy Information Administration points out that Gulf of Mexico offshore production contributes about 14% of total U.S. crude output, roughly 1.8 million barrels per day. Oil major Chevron Corp has stated that production from its operated assets remains normal, but nonessential personnel have been evacuated from some facilities. Conversely, Murphy Oil Corp has not shut down production or evacuated personnel, opting to monitor the storm’s progress. It is crucial for companies in the oil industry to take appropriate measures to ensure the safety of their workers and protect their assets during severe weather events like Tropical Storm Beryl.
