Corpus Christi, a major city in Texas, is experiencing rapid growth in the energy sector, contributing to the national energy boom. However, this expansion is leading to a critical water shortage, as large energy plants are significantly depleting the water supply.

Enterprises like Tesla and ExxonMobil, alongside local refineries, are placing an enormous demand on the city’s dwindling water reserves. Officials caution that if this continues, Corpus Christi might face a severe water crisis by the end of next year, potentially resulting in emergency measures.

After several years of intensifying drought and increasing industrial water consumption, the Corpus Christi City Council decided to halt the $1.2 billion Inner Harbor desalination project. The decision was based on escalating costs and environmental issues associated with the plant.

Energy plant consumes 13% of Corpus Christi’s water supply

With Stage 3 drought restrictions now in effect and reservoir levels dropping, the 500,000 residents are being urged to reduce their water usage.

Exxon and Saudi Basic Industries Corp. run a $7 billion plastics plant in the area, which reportedly consumes around 13 million gallons of water daily, according to a source familiar with the site’s operations, as reported by The Wall Street Journal.

That accounts for about 13% of all of Corpus Christi’s water supply, Drew Molly, former CEO of the city’s water utility, told the outlet. 

The Wall Street Journal notes that the halted desalination project was planned to convert seawater from the Gulf of Mexico into 36 million gallons of drinkable water by 2028. 

The plant was initially meant to alleviate the city’s water issues temporarily, but the surge in industrial facilities and financial roadblocks suggests this might not suffice. 

The city obtained permits for $757 million in low-interest loans from the state of Texas for the plant. Still, the entire plan was halted in September when the estimated cost rose to approximately $1.2 billion. 

Corpus Christi City Council at odds finding a solution

While most community members are in favor of desalination, council members remain divided on how to secure a long-term solution.

“Some of the council doesn’t have confidence in this initiative, but in my opinion, we have the funding. We have all the permits,” said Corpus Christi City Council member Roland Barrera. “I think part of it is the opposition from environmental groups, in addition to the competing projects, that council members feel that they may be able to provide a different solution, even though they’re not permanent.”

“The water situation in South Texas is about as dire as he’s ever seen it. It has all the energy in the world, and it doesn’t have water,” said Mike Howard, the chief executive of Howard Energy Partners.

Officials say the city could be completely tapped out within 19 months if no new plan is implemented.