US Coast Guard says hurricane may shut oil ports

HOUSTON - The US Coast Guard warned of possible Texas port closures from Corpus Christi to Houston and began restricting vessel traffic because of

Tropical Storm Beryl,

which is expected to become a hurricane before making landfall by the morning of July 8 at Port Lavaca.

Port closures could bring to a temporary halt shipments of crude oil to refineries and motor fuels from those plants.

Port condition “Yankee” was set by the Coast Guard captain of the port of Corpus Christi in the afternoon on July 6, restricting vessel movement in ports from Matagorda Bay, 163km southwest of Houston, to the US-Mexico border.

Citgo Petroleum Corp was cutting production at its 165,000 barrel-per-day Corpus Christi, Texas, refinery on July 6 ahead of the approach of Beryl to the Texas coast.

Citgo plans to keep the Corpus Christi refinery running at minimum production as the storm moves up the coast toward a projected landfall at Port Lavaca, a pipeline hub.

Oil producer Shell Plc completed the evacuation of workers from its Perdido production platform in the US-regulated Gulf of Mexico ahead of the approach of the storm, the company said on the night of July 5.

Production on Perdido was shut prior to the evacuations. Shell said it also evacuated workers from the Whale platform, which is due to start production later in 2024.

Gibson Energy, which operates a large oil terminal in Corpus Christi, said operations were continuing, but it would take further steps depending on the forecast.

The storm was moving on July 6 with maximum sustained winds near 95kmh, the National Hurricane Center said.

The latest forecasts would put Corpus Christi on the dry side of the storm where the lowest winds and least rain could be expected. But Beryl could bring gale-force winds to the port, which is why the Coast Guard restricts traffic or shuts the port.

Most of the northern Gulf’s offshore oil and gas production is east of Beryl’s forecast track.

US Gulf of Mexico offshore production of about 1.8 million barrels per day accounts for about 14 per cent of total US crude output, according to the US Energy Information Administration. Any impact on supplies could push up prices of US oil and offshore crude grades.

Oil major Chevron Corp, among the biggest US offshore producers, said on July 5 that production from its operated assets remained normal. But it evacuated non-essential personnel from some of its Gulf of Mexico facilities.

Murphy Oil Corp said it has not shut in production or evacuated personnel, and continues to monitor the storm. REUTERS