big oil

Houston company's $1.8B project off Texas coast gets Biden administration amid environmental protests

The Sea Port Oil Terminal being developed off Freeport, Texas, will be able to load two supertankers at once, with an export capacity of 2 million barrels of crude oil per day. Photo via Getty Images

In a move that environmentalists called a betrayal, the Biden administration has approved the construction of a deepwater oil export terminal off the Texas coast that would be the largest of its kind in the United States.

The Sea Port Oil Terminal being developed off Freeport, Texas, will be able to load two supertankers at once, with an export capacity of 2 million barrels of crude oil per day. The $1.8 billion project by Houston-based Enterprise Products Partners received a deepwater port license from the Department of Transportation's Maritime Administration this week, the final step in a five-year federal review.

Environmentalists denounced the license approval, saying it contradicted President Joe Biden's climate agenda and would lead to “disastrous” planet-warming greenhouse gas emissions, equivalent to nearly 90 coal-fired power plants. The action could jeopardize Biden's support from environmental allies and young voters already disenchanted by the Democratic administration's approval last year of the massive Willow oil project in Alaska.

“Nothing about this project is in alignment with President Biden’s climate and environmental justice goals,'' said Kelsey Crane, senior policy advocate at Earthworks, an environmental group that has long opposed the export terminal.

“The communities that will be impacted by (the oil terminal) have once again been ignored and will be forced to live with the threat of more oil spills, explosions and pollution,'' Crane said. "The best way to protect the public and the climate from the harms of oil is to keep it in the ground.”

In a statement after the license was approved, the Maritime Administration said the project meets a number of congressionally mandated requirements, including extensive environmental reviews and a federal determination that the port's operation is in the national interest.

“While the Biden-Harris administration is accelerating America’s transition to a clean energy future, action is also being taken to manage the transition in the near term,'' said the agency, which is nicknamed MARAD.

The administration's multiyear review included consultation with at least 20 federal, state and local agencies, MARAD said. The agency ultimately determined that the project would have no significant effect on the production or consumption of U.S. crude oil.

“Although the (greenhouse gas) emissions associated with the upstream production and downstream end use of the crude oil to be exported from the project may represent a significant amount of GHG emissions, these emissions largely already occur as part of the U.S. crude oil supply chain,'' the agency said in an email to The Associated Press. “Therefore, the project itself is likely to have minimal effect on the current GHG emissions associated with the overall U.S. crude oil supply chain.''

Environmental groups scoffed at that claim.

“The Biden administration must stop flip-flopping on fossil fuels,'' said Cassidy DiPaola of Fossil Free Media, a nonprofit group that opposes the use of fossil fuels such as oil, coal and natural gas.

“Approving the Sea Port Oil Terminal after pausing LNG exports is not just bad news for our climate, it’s incoherent politics,'' DiPaola said. Biden “can’t claim to be a climate leader one day and then turn around and grant a massive handout to the oil industry the next. It’s time for President Biden to listen to the overwhelming majority of voters who want to see a shift away from fossil fuels, not a doubling down on dirty and deadly energy projects.''

DiPaola was referring to the administration's January announcement that it is delaying consideration of new natural gas export terminals in the United States, even as gas shipments to Europe and Asia have soared since Russia invaded Ukraine.

The decision, announced at the start of the 2024 presidential election year, aligned the Democratic president with environmentalists who fear the huge increase in exports of liquefied natural gas, or LNG, is locking in potentially catastrophic planet-warming emissions even as Biden has pledged to cut climate pollution in half by 2030.

Industry groups and Republicans have condemned the pause, saying LNG exports stabilize global energy markets, support thousands of American jobs and reduce global greenhouse emissions by transitioning countries away from coal, a far dirtier fossil fuel.

Enterprise CEO Jim Teague hailed the oil project's approval. The terminal will provide “a more environmentally friendly, safe, efficient and cost-effective way to deliver crude oil to global markets,'' he said in a statement.

The project will include two pipelines to carry crude from shore to the deepwater port, reducing the need for ship-to-ship transfers of oil. The terminal is expected to begin operations by 2027.

Since the project was first submitted for federal review in 2019, “Enterprise has worked diligently with various federal, state and local authorities, and participated in multiple public meetings that have allowed individuals and stakeholder groups to learn about the project and provide their comments,'' including some studies that have been translated into Spanish and Vietnamese, the company said in a statement. More than half of Freeport's 10,600 residents are Hispanic, according to the U.S. Census Bureau.

Sen. Ted Cruz, R-Texas, hailed the license approval as “a major victory for Texas’s energy industry" and said the Biden administration had delayed the Sea Port terminal and other projects for years.

“After tireless work by my office and many others to secure this deepwater port license, I’m thrilled that we’re helping bring more jobs to Texas and greater energy security to America and our allies,'' Cruz said in a statement. “That this victory was delayed by years of needless bureaucratic dithering shows why we need broader permitting reform in this country.''

The oil export facility, one of several license applications under federal review, is located 30 miles offshore of Brazoria County, Texas, in the Gulf of Mexico.

The license approval followed a ruling by the Fifth Circuit Court of Appeals last week dismissing claims by environmental groups that federal agencies had failed to uphold federal environmental laws in their review of the project.

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A View From HETI

The repair crews working on getting the lights back on are facing unhappy residents. Photo via Getty Images

Drawn guns. Thrown rocks. Threatening messages. Houston’s prolonged outages following Hurricane Beryl has some fed-up and frustrated residents taking out their anger on repair workers who are trying to restore power across the city.

The threats and confrontations have prompted police escorts, charges in at least two cases, and pleas from authorities and local officials to leave the linemen alone so they can work.

Beryl knocked out power to nearly 3 million people in Texas — with most of those in the Houston area — after making landfall July 8. The Category 1 storm unleashed heavy rain and winds that uprooted trees and damaged homes and businesses along the Texas Coast and parts of Southeast Texas. State authorities have reported 18 deaths from Beryl. In the Houston area, some have been due to heat exposure following the loss of power, according to the medical examiner’s office in Harris County.

As of Tuesday, crews were still working to restore power to some residents.

“Linemen are our friends and are doing their job. Do not threaten them. I understand you’re angry and mad and frustrated, but let’s get through this together,” Mayor John Whitmire said during a news conference on Monday.

Houston police have investigated at least five cases involving threats made to workers and other employees, whether in person or online.

In one of these cases, police arrested Anthony Leonard, 38, charging him with aggravated assault with a deadly weapon. Authorities allege Leonard on Saturday threw rocks and pointed a gun at a group of CenterPoint Energy workers who were at a staging area.

Leonard remained jailed Tuesday. His attorney did not immediately return a call seeking comment.

CenterPoint CEO Jason Wells said over 100 line workers had to be evacuated from the staging area on Saturday. He said such threats are counterproductive as crews have to be moved to safer areas, delaying their work.

“So many of our fellow Houstonians have addressed this situation with patience and grace. And I want to thank them. But unfortunately, there have been instances where either acts of violence have been threatened or actually committed against our crews that are working this vital restoration. This is unacceptable. The safety of our crews is paramount,” Wells said.

KPRC reported that a charge of making a terroristic threat has been filed against a woman from the Houston suburb of Baytown. The Texas Department of Public Safety alleges the woman made multiple online threats of murder, assault and deadly conduct against employees, including Wells, at CenterPoint’s headquarters in downtown Houston. The woman has not been arrested.

Chief Deputy Mike Lee with the Harris County Sheriff’s Office said his agency has investigated a break-in of a CenterPoint vehicle and three cases where residents refused to let linemen enter their properties.

Ed Allen, business manager for the International Brotherhood of Electrical Workers Local Union No. 66, which represents workers at CenterPoint, said in 42 years in this industry, he’s never seen a response like this where workers are being threatened.

Allen said he spoke to one crew that said while they were working in a suburban Houston neighborhood, several men stood across the street from them and held an assault type rifle in a menacing way.

“It is very disheartening to see the community that I’ve worked in and that I’ve dedicated my life to provide electricity to act the way they have during this event,” Allen said.

Crews on Tuesday told Allen they haven’t received any new threats.

“I hope it’s gotten better out there. Part of that I think has a lot to do with the fact that regardless of what anybody thinks, the restoration effort has gone really well,” Allen said.

As of late Tuesday afternoon, CenterPoint reported that less than 82,000 customers remained without power.

On Tuesday, Gov. Greg Abbott sent a letter to CenterPoint demanding information from the company, including what actions it will take to reduce or eliminate power outages during future storms and how it will improve communication with its customers before, during and after a weather event.

“Texans must be able to rely on their energy providers to keep the power flowing, even during hurricane season. It is your responsibility to properly prepare for these foreseen incidents and work tirelessly to restore power as quickly as possible when it is lost. Anything less is unacceptable,” Abbott wrote.

In a statement, CenterPoint said it's addressing Abbott's request and that its work with officials and community leaders to increase the resiliency of the electric grid is essential in "creating and sustaining an environment in Texas where people want to live and build their businesses.”

Harris County Commissioner Adrian Garcia said the threats to CenterPoint workers and out-of-town crews only makes “it harder and longer to get your lights back on.”

“These folks are just here trying to help. Let them do their work and help us and tomorrow will be a better day,” Garcia said.

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