CORPUS CHRISTI, Texas — As Corpus Christi faces its most severe drought in decades, local industries that fuel the region’s economy are under pressure to conserve water while keeping operations running.
Bob Paulison, Executive Director of the Coastal Bend Industry Association (CBIA), represents 21 major companies that do business in and around the Port of Corpus Christi — including refineries, chemical manufacturers, crude and liquefied natural gas terminals.
In a sit-down interview, he broke down how much water local industries use, why they use it, and what the looming “Stage 4” drought restrictions could mean for jobs, production, and the economy.
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WATCH THE EXTENDED INTERVIEW HERE:
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These are our top 10 takeaways from the conversation.
1. CBIA REPRESENTS THE REGION’S BIGGEST EMPLOYERS
Paulison leads a group of 21 companies tied to the Port of Corpus Christi — from refineries to chemical and midstream operators. Together, they drive much of the region’s economy and tax base.
2. YES, INDUSTRY KNOWS IT USES MOST OF THE WATER
About 500,000 people rely on Corpus Christi’s water supply but refineries and chemical plants are the heaviest users. As of 2024, industrial use accounts for approximately 55% of water consumption in Nueces and San Patricio counties (up from typical 50%), totaling about 60.5 million gallons daily out of 110 million gallons total.
3. WHY DO THEY NEED SO MUCH WATER?
Refineries and chemical plants use massive amounts of water - here are the main reasons:
Cooling: Cooling alone accounts for much of the water consumption. Cooling towers act like giant air conditioners, constantly cycling water to keep machinery from overheating.
Cleaning: In oil refineries for example, water is used to remove dirt and contaminants from raw petroleum aka crude oil. That cleaning process results in cleaner-burning gasoline and diesel.
Power/Processing: Water turned into steam, which powers equipment, cleans pipes and drives chemical reactions.
Safety: In plants handling flammable materials, water is critical. It’s used in emergency sprinklers, fire suppression and to control pressure
4. PLANTS WILL SHUT DOWN IF WE REACH STAGE 4 DROUGHT
The city’s drought contingency plan includes four main stages. Stage 4 — the most critical — triggers mandatory water cutbacks (or “curtailments”) once the region’s water supply falls to 180 days. Everyone, including industry, would be allotted a set percentage of normal usage.
Paulison warned that some plants cannot simply “dial back” water use by 25%. For many facilities, a 25% cut would trigger immediate shutdowns of entire units — or even the whole plant — resulting in layoffs, lower property tax revenue, and reduced port activity and economic decline.
5. PLANTS CAN USE WATER EFFICIENTLY
Paulison says that the plants do not waste water and are already recycling water. Companies are preparing now to avoid shutdowns and industries. These companies are motivated to conserve because water is a cost of doing business and is needed to compete in global markets.
Here are options they are exploring to conserve or produce water:
Recycling wastewater: many plants have their own wastewater treatment plants and are running that water back through their process through cooling towers. However, even with recycling, these 24/7 operations require millions of gallons daily because water is an essential element to every stage of production.
Collecting and storing stormwater: Production plants are looking at collecting storm water and storing it so that they have an alternative to the municipal water system.
Adjusting the chemistry of reused water: steam systems require high quality water and recycled water is not always the cleanest so plants are looking into ways to adjust the water’s chemistry.
Drilling wells for groundwater: industry is looking to see if they have enough land to drill private wells to collect water from to supplement municipal water supply
6. GROUND WATER IS THE WILD WILD WEST
The Gulf Coast aquifer has low recharge rates, raising concerns about subsidence and impacts on neighboring wells. Groundwater alone cannot solve the crisis without consequences.
"Groundwater is is problematic in our area because typically we'll draw from the Gulf Coast aquifer, right. In one way or another. And the Gulf Coast aquifer does not have a super high recharge rate... So, you know, highly likely that we'll see subsidence, highly likely, as you know, you hear from Sinton and San Patricio County and others that there's going to be, you know, there's concern over impact to adjacent wells."
7. THE PUBLIC DOESN’T UNDERSTAND THE DROUGHT EXEMPTION FEES
“One of the most misunderstood programs related to water that there could possibly be (and it's got a bad name) is called the drought surcharge,” said Paulison.
The controversial "drought surcharge exemption fee" is actually a surcharge ($0.31 per thousand gallons) that large users pay daily on all water consumed—on top of regular rates—to fund capital water projects and ensure supply certainty. That surcharge exempts industry from paying a council-imposed surcharge at stages two and three of the drought contingency plan but does not exempt those users if the city were to enter into a water emergency. While the plan allows the City Council to impose a surcharge at stages two or three, the council has never done so.
Paulison acknowledged the public’s frustrations with the fact that industry makes a lot of money but he defended the rate, saying that all users pay for the parts of they system they use and for the water they consume. As for the fee? Just a few cents per thousand gallons — as a negotiated, inflation-adjusted agreement that gives industries predictability while generating capital for the city’s long-term water solutions.
8. PLANT SHUTDOWNS WOULD BE AN ECONOMIC CATASTROPHE
Plant shutdowns would mean job losses, reduced property tax valuations, decreased sales tax revenue, and less product coming in and out of the Port of Corpus Christi, impacting restaurants, suppliers, and countless businesses.
"What that translates into is job losses, property tax. You know, the valuations of the plants go down if they're not able to produce as much, right, they're less valuable. So that impacts property taxes. And that ripples through the economy. And so it's going to be less sales taxes, less less throughput through the port of Corpus Christi."
If plants shut down during curtailments, the critical question becomes whether they'll reopen. Global markets will redirect production elsewhere, potentially making closures permanent.
When a plant shuts down the market place, right, the demand in the marketplace is the same. And so the production will be directed someplace else. And so the real risk to the, to the region is that if a plant shuts down, what what are the chances it's going to open back up or it's going to stay shut down.
9. THE INNER HARBOR DESAL PROJECT WAS CRITICAL
The City Council’s decision to not move forward with design of the Inner Harbor desalination plant eliminated a "drought-proof" diversified water source that was fully permitted and state-financed, leaving groundwater as the primary alternative—which brings significant challenges.
Quote: "One of the unfortunate things about the Inner Harbor project not going forward, is that it eliminates a viable source, fully permitted with financing supported by the state of Texas. That gives us the diversification that we're looking for right now... it gives us a truly drought proof supply of high quality water that's available to everybody that uses the City of Corpus Christi system."
10. DON’T PANIC
When we asked if Corpus Christi could be the next Flint Michigan or Detroit Auto Industry, Paulison said he doesn’t “think that’s in the card for us,” because this area has a natural occurrence of (lucrative) oil and gas that aren’t going away anytime soon.
The water crisis is alarming but Paulison says everyone in the industry are inherently problem solvers who “cannot be driven using the rearview mirror.” CBIA is focused on it’s mission to maintain a stable business climate, promote responsible industrial growth, and ensure members are “good corporate neighbors,” by focusing on issues like air quality, water supply, workforce development, and emergency preparedness.
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