US approves Texas offshore oil port despite environmental outcry

THE US has given the greenlight for Enterprise Products Partners to begin construction on a deepwater offshore oil export terminal near the Texas coast, despite fierce opposition from environmentalists and locals.

Sea Port Oil Terminal (SPOT) will be located 30 miles off the coast of Brazoria County and is expected to load 2m bbl/d of crude oil. The US’ largest and only operational deepwater port, the Louisianna Offshore Oil Port, currently processes 2.9m bbl/d.

Enterprise applied for licensing of the facility in 2019, and after five years of federal reviews, the Department of Transportation’s Maritime Administration concluded the project met environmental requirements.

However, green groups like Better Brazoria and Earthworks have slammed the decision citing SPOT’s threat to public health and potential impact on the climate.

Another Deepwater Horizon

Residents in Brazoria County have described SPOT as an oil spill waiting to happen, with the US$1.8bn facility potentially lowering property values and killing marine life.

Gary Witt, a resident of Surfside in the county, said: “This decision has put hundreds of beach communities along the Texas coast at risk of an oil blowout from the two huge high-pressure pipelines carrying two million barrels of crude a day offshore.”

He added: “The Deepwater Horizon disaster is on everyone's mind. We all wonder, ‘Are we next?’”

SPOT has been designed to handle very large crude carriers and boasts large and extensive pipelines connecting the facility to Enterprise’s existing crude oil terminal in Houston, and new inland crude port in Brazoria county.

Enterprise expects its network and the facilities capacity to help avoid reverse lightering, a process where multiple small boats are needed to offload crude oil.

AJ “Jim” Teague, co-CEO of Enterprise, said: “Compared with the current industry practice of reverse lightering, SPOT is expected to reduce crude vapour emissions by 95%, and lower total greenhouse gases by 65%.”

He added: “At full capacity, SPOT would eliminate more than 900 ship-to-ship transfers in federal waters annually.”

US bolstering crude oil exports and energy security

The Russian invasion of Ukraine saw an immediate surge of crude oil prices as they rose from US$8 a barrel to US$105.

Now at around US$80, the US has been rapidly increasing its crude oil exports, hitting a record of 4.1m bbl/d in 2023.

Enterprise said the new terminal will give access to more than 40 distinct grades of crude oil, including Midland WTI.

The Department of Transportation and US Coast Guard review stated: “The Port will provide a reliable source of crude oil to US allies in the event of market disruption and have a minimal impact on the availability and cost of crude oil in the US domestic market.”

Enterprise expects SPOT to be operational by 2026/27.