DOT Approves License For Deepwater Oil Port Offshore Texas
A license for Texas Offshore Port Inc. to construct and operate a deepwater port for oil supertankers in the Gulf of Mexico has been approved by the federal Department of Transportation. The port, to be located 12 miles south of Freeport, Texas, will be able to handle 500,000 barrels of oil a day and will cost an estimated $191 million.
Texas Offshore Port Inc., a consortium of potential users — oil and chemical companies—applied for the license which guarantees that the facility be operated as a common carrier.
The DOT said that according to conditions recommended by the Justice Department and the Federal Trade Commission, the port will be subject to antitrust laws. Transportation Secretary Drew Lewis, in a statement released recently, said the new port will lower the cost of transporting crude oil and significantly reduce the risk of oil spills.