LUBBOCK, TEXAS (RFD NEWS) — South Texas drought is becoming more than a farm and ranch water issue as Corpus Christi refineries and chemical plants face possible water surcharges. According to OPIS, the city is preparing for a projected Level 1 Water Emergency tied to a prolonged five-year drought.
The region includes Valero, Flint Hills Resources, and Citgo refineries, with a combined crude distillation capacity of 900,000 barrels per day. That equals about 5 percent of U.S. refining capacity.
Most analysts do not expect major refinery production impacts on refinery production for now. Companies have been recycling, reclaiming, and reusing water, and some may absorb added costs rather than cut operations.
Still, drought near a major refining and petrochemical hub poses a risk to agriculture. If shortages worsen, producers could eventually feel pressure through diesel, freight, irrigation fuel, chemicals, plastics, and fertilizer-related costs.
The concern grows if drought overlaps with hurricanes, outages, strong summer demand, or tight inventories.
Farm-Level Takeaway: Corpus Christi’s water shortage may not disrupt fuel supplies now, but it adds another cost risk for diesel, freight and farm inputs.
Tony St. James, RFD News Markets Specialist
The Echols family of Downsville is racing against the weather during hay season, harvesting ryegrass silage before incoming rain moves into the area.
Mike Schulte with the Oklahoma Wheat Commission joins us to discuss drought stress in the Great Plains and the current outlook for Oklahoma’s winter wheat crop.
USDA Chief Economist Justin Benavidez says the cattle industry may be nearing a turning point that could gradually reshape supply, prices, and profitability in the years ahead.
The behind-the-scenes role helps guide jump crews as they protect rural communities.
HTS Commodities broker Lewis Williamson joins us to break down the latest USDA Crop Progress Report and how weather and global supply chain issues could influence planting conditions moving forward.
Nebraska cattle rancher Joe Van Newkirk joins us to discuss wildfire recovery in Nebraska’s Sandhills athe challenges ranchers face restoring basic infrastructure after the fire.
