Corpus Christi Water Crisis: Severe Drought Threatens US Gasoline Supply

Corpus Christi, Texas, a critical energy hub producing 5% of the U.S. Gasoline supply, is facing a severe water crisis that threatens to disrupt refineries, petrochemical plants, and international oil exports. A prolonged drought spanning most of the last seven years has depleted water reserves to their lowest points on record, leaving city officials scrambling to avoid a total supply failure.

The shortage poses a significant risk to the Port of Corpus Christi, the top U.S. Port for crude oil exports. According to Sean Strawbridge, the former CEO of the Port of Corpus Christi Authority, the depletion of water supplies could cut off the flow of jet fuel to Texas airports and impact energy markets internationally.

Infrastructure Failures and Industrial Growth

City Manager Peter Zanoni, who has held the position since 2019, stated that the city failed to maintain water supply and infrastructure adequately over several decades. This lack of preparation coincided with a period where the city increased water sales to large industrial customers, including a steel mill and a petrochemical plant.

A primary point of contention is a proposed seawater desalination plant. Recommended in 2016 as a drought-proof solution, the project stalled due to environmental concerns and estimated costs as high as $1.3 billion. Zanoni noted that had the city council followed through on the project, the plant would likely be operational by 2026.

While a pipeline extension to the Colorado River finally reached its full capacity in 2025, the city’s reservoirs never fully recharged following a previous drought in the early 2010s, leaving the system vulnerable to the current conditions.

Economic Risks and Water Allocation

The city is currently operating under Stage 3 of its drought plan, which mandates pauses on many outdoor water uses. This has led to friction between residents and the industrial sector. Big industry consumes as much as 60% of the city’s water supply.

Under the current system, industrial users can pay a permanent surcharge to avoid larger fees typically added during drought periods. Isabel Araiza, co-founder of a grassroots water group, argues this removes the incentive for industry to conserve water. Conversely, Bob Paulison, executive director of the Coastal Bend Industry Association, states that companies have recycled water for cooling and stopped landscaping to assist conservation efforts.

The financial burden of recovery may fall on the public. Zanoni indicated that water rates could eventually double as the city invests approximately $1 billion in new infrastructure.

The Path Toward a Water Emergency

A formal water emergency is declared when the city is within 180 days of the water supply being unable to meet demand. City officials have warned that such an emergency could be declared as early as May 2026 or as late as October 2026.

To avert this, the city is pursuing the Evangeline Groundwater Project. This initiative involves a pipeline and approximately two dozen wells that could provide enough water to prevent an emergency. The project is currently awaiting state approval, with hopes that water will flow by November 2026.

If a water emergency is declared, the city would implement mandatory reductions in water use across both residential and industrial sectors. Industry experts warn that such cuts could be catastrophic for the region’s economic stability.

When you cut the cooling water off to most of these industries, they just have to shut down. There’s no other way around it.

Don Roach, former assistant general manager of the San Patricio Municipal Water District

The potential for forced industrial shutdowns has raised alarms regarding mass layoffs and the need for billions of dollars in emergency spending to prevent a wider economic crisis in the region.