Texas economy

Impact of COVID-19 on our South Texas Economy

3News spoke to economics experts about how Coastal Bend’s economy will evolve in the coming months.

CORPUS CHRISTI, Texas — 3News spoke with economic experts about how Coastal Bend’s economy will fare in the coming months. Even speaking with the CEO of Moda Midstream LLC about the company’s ongoing expansion efforts in Ingleside.

“There are a lot of uncertainties, but I think our economy will get back on its feet,” said Dr. Jim Lee, professor of economics at TAMUCC.

Dr. Lee is our leading expert in all things economics. He told us that it seems that only 1 in 10 small businesses receive financial assistance from the government. While this is not good news for our local small business owners, he believes we could see a recovery by December.

“Hopefully our economy will rebound nationally so that we are back to our baseline by the end of the year,” Dr. Lee said. “I’m looking for nothing more than to get back to the baseline for South Texas by the end of the year.”

Dr. Lee also believes that our energy businesses here will also be part of this recovery. One such company is Moda Midstream LLC. It is a Houston-based company that operates a huge oil storage terminal in the former naval station of Ingleside. The company has just announced that it has now completed construction of its storage facility and now has a capacity of 12 million barrels of oil. We asked CEO Bo McCall how he sees the future of his company.

“It’s a short-term problem versus a long-term problem, I think given that you have between 25,000,000 and 30,000,000 barrels a day, you have to destroy the world market,” said McCall.

“Everybody that’s producing is going to have to shut down or find places to put the oil, that’s why storage fills up in the short term. If you have a reservoir, it’s going to form. In the long term, again, we’re well placed to add more storage.”

McCall told 3News this time next year that the Ingleside facility would have expanded again to hold 15 million barrels of oil.

For the latest updates on coronavirus in Coastal Bend, click here.

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