Corpus Christi’s crucial refineries look for alternate water supplies
amid looming water crisis
[March 21, 2026] By
PAUL COBLER and CARLOS NOGUERAS RAMOS/The Texas Tribune
Companies that own refineries in Corpus Christi say they are working to
secure alternative water sources to maintain operations and prevent a
shortage of gasoline and jet fuel in Texas and beyond as the city
scrambles to delay or avoid a rapidly-escalating water crisis.
The city earlier this week said it could enter a water emergency in as
soon as two months; at that point the city would have roughly six months
before supply could no longer meet demand.
With gasoline prices rising amid the U.S.-Israel war with Iran, water
limitations in the Coastal Bend — a growing fuel and chemical hub —
could further drive up prices, industry officials said.
“If water limits force changes, facilities might have to slow
production, take units offline or run at lower rates,” said Ed
Longanecker, president of the Texas Independent Producers and Royalty
Owners Association, an oil and natural gas industry trade group. “That
would hit local jobs, reduce economic activity and cut into revenue that
flows through the Port of Corpus Christi, which is one of the country’s
leading crude oil export points.”
On a statewide level, Longanecker added, “any disruption at these
refining and export sites could tighten supplies of gasoline, jet fuel,
diesel and other refined products across Texas,” which would affect fuel
prices.
The outsized impact of the industries using Corpus Christi water
threatens to create ripple effects far beyond the Gulf Coast, said Ray
Perryman, an economist and founder of the Perryman Group, which conducts
economic analyses across several Texas industries.
“The presence of refineries in the Corpus Christi area are shifting the
severe water shortage from a local problem to an issue with significant
potential economic ramifications for the state and nation,” Perryman
said.
An extended drought has coincided with a years-long effort by city
leaders to attract more industry to Corpus Christi Bay — which in turn
has driven up demand for water.
Industrial consumers account for about 50% to 60% of the city’s water
use, local officials said.
The city was counting on a desalination plant to help it keep ahead of
that demand, but the City Council killed the project last year because
of concerns over its escalating price tag and fears that it would harm
the bay’s ecosystem. City leaders are now scrambling to revive the
project, which would take years to come online.
With two of its main reservoirs dropping below 10% of capacity, the city
is pushing forward with an array of potential solutions, from increasing
how much it pumps through its main pipeline that draws from Lake Texana
and the Colorado River to drilling wells to tap local groundwater.
The city has also turned to water conservation, asking residents to
reduce water use by banning lawn watering and requiring them to wash
cars and boats with a 5-gallon bucket or face a fine.
It’s unclear whether those fixes will deliver enough water quickly
enough to avert the crisis.
Gov. Greg Abbott — who sharply criticized Corpus Christi leaders for
their handling of their water supply — ordered agencies last week to
suspend normal procedures in an effort to speed some water projects and
buy the city more time.
“With each passing day, the options that we have available to us
diminish,” said Bob Paulison, director of the Coastal Bend Industries
Association, which works with 21 companies that could be impacted by the
shortages, plus the Port of Corpus Christi. “I thought we learned that
lesson 15 years ago (during the last major drought) … and we’re learning
it again the hard way.”
Companies reached by The Texas Tribune said they remain confident that
they can remain operational during a water shortage. However, ExxonMobil
and Flint Hills Resources are both seeking alternative sources of water,
according to the companies.
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 Flint Hills Resources operates two
refineries in Corpus Christi that turn up to 350,000 barrels per day
of crude oil into fuels that it distributes to different markets,
including San Antonio, Austin, Waco and Dallas-Fort Worth.
A company spokesperson said Flint Hills Resources has begun working
with local officials on plans to draw wastewater from the city’s
Allison Wastewater Treatment Plant. The company hopes to install
temporary filtration equipment it expects will allow it to draw and
use 1.5 million gallons a day. It’s unclear when those plans would
come online.
“We are optimistic we will be able to manage the potential
curtailment scenarios without significantly disrupting our
operations,” the spokesperson said.
Flint Hills is so far the only refinery with an agreement to draw
water from the wastewater plant, approved by the Corpus Christi City
Council in late January.
ExxonMobil, along with Saudi Arabia-based Saudi Basic Industries
Corporation, jointly operates a plastics manufacturing facility in
nearby San Patricio County. The companies say they are exploring
alternative water sources that are not currently used for public
consumption.
The three facilities owned by the two companies are among the
largest volume users of Corpus Christi’s municipal water supply.
The region’s refining capacity is close to 1 million barrels of
refined products per day, including 450,000 barrels of gasoline, or
about 5% of the nation’s supply of refined products, said Todd
Staples, president of the Texas Oil & Gas Association.
The oil and natural gas industry also supports about 115,000 jobs in
the Coastal Bend region, crucial pieces of the regional and state
economies that are now at risk, Staples said.
“Industry subject matter experts will continue to work
collaboratively with city officials to ensure the Coast Bend region
thrives and contributes to delivering the power that fuels our
modern way of life,” Staples said. “Time is of the essence, because
a prolonged water shortage will have yet-to-be determined
consequences on the production capacity of facilities that are
served by the city.”
Paulison, the industrial association director, said the companies he
represents launched water reduction measures long ago. He said
Corpus Christi has grappled with drought for nearly five years.
The association’s companies produce a mix of diesel, jet fuel,
refrigerants and bulk ibuprofen for markets both local and across
the country.
Paulison said the companies have taken steps to reduce water usage,
such as washing vehicles and equipment less frequently and using
saltwater where possible. Companies have also bolstered leak
detection and repair, he said, adding that they are also
fast-tracking projects to use treated wastewater and lessen their
reliance on the city’s water supply.
The companies’ goal “is to continue to operate, even in a Level 1
(water) emergency,” Paulison said. “What we’re focusing on is
operating and continuing to supply customers with product.”
Industry leaders called on state and local officials to find
solutions to the water problem quickly. They said Texas’
nation-leading oil and gas producers depend on the city’s refining
capacity
“The local economy and the country’s energy picture rely heavily on
Corpus Christi’s role as a key processing, transport and export
point for oil and gas coming from the Eagle Ford, Permian and other
(oil-producing) basins,” Longanecker, the trade group president,
said. “Thousands of jobs depend on it. Reliable water supplies are
essential to keep everything running smoothly during this shortage.”
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Alejandra Martinez contributed to this report.
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