Corpus Christi’s refineries and port-linked energy businesses are preparing for a possible municipal water crunch as the city warns drought conditions could culminate in a water emergency within weeks, not years. The industry’s concern is that refinery operations and fuel and chemical production depend heavily on reliable water deliveries, so any curtailments from water limits could affect output and prices across Texas and beyond.
City officials said earlier this week they could enter a water emergency in as soon as two months, at which point they expect roughly six months before water supply can no longer meet demand. The warning arrives while two of the city’s main reservoirs have dropped below 10% capacity, according to the report, and as the region’s industrial demand continues to pressure the system.
Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, said water limits could require industrial facilities to change operations. He warned that if water limitations force changes, refineries might have to slow production, take units offline, or run at lower rates—outcomes he said would affect local jobs, reduce economic activity, and cut into revenue flowing through the Port of Corpus Christi, one of the country’s leading crude oil export points.
Longanecker added that disruptions at the refining and export sites could tighten supplies of gasoline, jet fuel, diesel and other refined products across Texas, affecting fuel prices. Ray Perryman, an economist and founder of the Perryman Group, said the presence of refineries in the Corpus Christi area could shift what would otherwise be a local water shortage into an issue with broader economic ramifications for Texas and the nation.
The city’s industrial load has grown over time, in part because of efforts by city leaders to attract more industry to Corpus Christi Bay—efforts that increased water demand during an extended drought. Local officials said industrial consumers account for about 50% to 60% of the city’s water use, and the city had planned to rely on desalination, but the City Council killed the project last year due to concerns about its escalating cost and fears it would harm the bay’s ecosystem. City leaders are now trying to revive desalination, a process they said would take years before coming online.
In the meantime, the city is pursuing a mix of measures. Officials are increasing how much water is pumped through a main pipeline drawing from Lake Texana and the Colorado River, pursuing wells to tap local groundwater, and implementing conservation restrictions that include bans on lawn watering and requirements for residents to wash cars and boats with a 5-gallon bucket or face a fine. The report also described it as unclear whether those steps will arrive quickly enough to avert the crisis.
State officials have stepped in as the clock moves faster. Gov. Greg Abbott ordered agencies last week to suspend normal procedures in an effort to speed some water projects and buy the city more time, saying the options available diminish with each passing day. Bob Paulison, director of the Coastal Bend Industries Association, which works with 21 companies that could be affected by shortages, said companies learned from the last major drought about the need to act quickly.
Among the companies facing the challenge, the report said ExxonMobil and Flint Hills Resources are both seeking alternative sources of water. Flint Hills Resources operates two refineries in Corpus Christi that can process up to 350,000 barrels per day of crude oil into fuels distributed to markets across Texas, including San Antonio, Austin, Waco and Dallas-Fort Worth. A company spokesperson said Flint Hills has begun working with local officials on plans to draw wastewater from the city’s Allison Wastewater Treatment Plant, with temporary filtration equipment expected to allow the company to draw and use 1.5 million gallons a day, though the report said it was unclear when the plans would come online.
The City Council approved the wastewater approach in late January, and the report said Flint Hills is so far the only refinery with an agreement using that route. ExxonMobil, together with Saudi Arabia-based Saudi Basic Industries Corporation, jointly operates a plastics manufacturing facility in nearby San Patricio County, and the companies said they are exploring alternative water sources that are not currently used for public consumption. The report said the three facilities owned by those companies are among the largest municipal water users in the region.
Industry leaders said the stakes extend beyond Corpus Christi. The refining capacity in the Coastal Bend region is close to 1 million barrels of refined products per day, including 450,000 barrels of gasoline—about 5% of the nation’s supply of refined products, according to the report. Todd Staples, president of the Texas Oil & Gas Association, said the industry supports about 115,000 jobs in the Coastal Bend, calling those jobs and broader economic activity at risk.
Staples said industry experts would continue to work with city officials to ensure the region thrives, and he described time as an urgent factor because a prolonged water shortage could affect production capacity. Paulison said the association’s companies launched water-reduction measures long ago, saying Corpus Christi has grappled with drought for nearly five years, and he cited actions such as washing vehicles and equipment less frequently and using saltwater where possible, along with leak detection and repair. He also said companies are fast-tracking projects to use treated wastewater to lessen their reliance on the city’s municipal supply, describing the goal as continuing to operate even in a Level 1 water emergency.