In this update we provide information on storm status, flooding/storm surge, and infrastructure issues across Houston resulting from Hurricane Beryl.

Summary

• Beryl made landfall near Matagorda Bay as a strong category 1 hurricane. Wind gusts of up to 90 mph were felt across portions of the greater Houston area. Localized rainfall exceeded 15 inches in some places. Roughly 1.7 million Houston residents were without power as of 2:30 PM CST.
• Storm surge of at least 4 ft along the coastline also contributed to flooding issues. According to NOAA, observed water levels at Manchester, Texas, located far up the ship channel, were well above major flood stage even as of 2 PM CST on 8 July. Water levels at Morgans Point, which sits at the entrance to the ship channel, near Exxon Baytown, was also in major flood stage, but levels here had fallen dramatically from earlier this morning.
• While hard to ascertain operating conditions on the ground, Kpler data as of 2:30 PM CST on 8 July currently shows no vessel movement activity in or out of the Houston ship channel. A statement from the Port of Houston indicated that terminal operations would not restart until Tuesday afternoon.
• The City of Texas City at 5:44 AM CST also tweeted a statement clarifying that the Marathon 630 kbd Galveston Bay Refinery was flaring due to a brief power disruption, albeit further information on the operational status of the facility remains unknown.

Hurricane Beryl Visible Radar as of 8:15 AM CST on 8 July 2024

Source: RadarScope

This morning Hurricane Beryl made landfall as a strong category 1 hurricane near Matagorda Bay, bringing wind gusts of up to 90 mph across certain portions of the Houston area. The track set up in a way that brought the powerful eastern eyewall right over the inner 610 loop, which is the densest part of the city. The shift northward in the expected track of Beryl over the past week was a notable change, and while only a category 1 storm, Beryl packed a serious punch, not only to Houston, but across the broader collection of suburbs surrounding the city as well. Beryl has now moved out of Houston and will rapidly pull northward towards Arkansas.

According to Centerpoint Energy, roughly 1.7 million Houston residents were without electricity as of 2:30 PM CST on 8 July. It will likely take days if not weeks to return the city power grid to normal operating conditions. Rainfall was also an issue, with north of 8 inches falling across large swathes of Houston proper and outlying suburbs. In localized areas, more than 15 inches fell in a span of less than 10 hours.

Observed Water Levels at Morgans Point and Manchester, Texas

Source: NOAA

Storm surge of at least 4 ft along the coastline also contributed to flooding issues as the key Bayous that drain the city of Houston were backed up. According to NOAA, observed water levels at Manchester, Texas, located far up the ship channel, were well above major flood stage even as of 2 PM CST on 8 July. For comparison, during Hurricane Harvey, another major flooding event for Houston, max flood stage levels at Manchester were roughly 12 ft, up from a maximum of around 9 ft seen this time around. Water levels at Morgans Point, which sits at the entrance to the ship channel, near Exxon Baytown, was also in major flood stage, but levels here had fallen dramatically from earlier this morning.

While hard to ascertain operating conditions on the ground, Kpler data as of 2:30 PM CST on 8 July currently shows no vessel movement activity in or out of the Houston ship channel. A statement from the Port of Houston indicated that terminal operations would not restart until Tuesday afternoon. Elsewhere, the situation is improving. The Port of Corpus Christi, which closed yesterday, has since reopened to vessel traffic after the storm largely remained to the east. Kpler data currently counts three vessels, the Turquoise, the Humble Warrior, and the Da Wei Shan are all moving through the channel with the intent to load.

Current Vessel Activity Houston Ship Channel

Source: Kpler

Operational closures across the Houston energy complex are also difficult to ascertain. According to data from Reuters, Freeport LNG reduced production over the weekend and stated full operations would restart “after the storm had passed.” The City of Texas City at 5:44 AM CST also tweeted a statement clarifying that the Marathon 630 kbd Galveston Bay Refinery was flaring due to a brief power disruption, albeit further information on the operational status of the facility remains unknown.

Spot WTI traded lower through Monday in response to the storm. Refineries along the ship channel will likely be forced to grapple with short term issues around power availability and flooding, depressing runs a bit. Offshore oil production also remained largely intact, albeit Shell’s 60 kbd (oil only) Perdido platform was evacuated on 7 July as a precautionary measure.

Daily Spot WTI ($/bbl)

Source: NYMEX

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