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The energy crisis still continues, although some major power outages have been restored in Texas, hit by record cold waves.
Utility tracking websiteAccording to Power Outage.US, about 375,000 homes and businesses are without power in the state as of the 18th. It decreased from more than 3 million on the 17th.
However, the economic impact of the energy crisis is widespread and may be prolonged. Crude oil production in the United States has fallen by almost 40% and hydraulic fracturing (hydraulic fracturing) activity has ceased in the Permian Basin, where shale oil is produced.
US crude oil production declined by 40%, the biggest drop ever recorded: an oil well operation was halted due to a severe cold snap (2)
In the oil industry, several companies have declared force majeure warning customers that they will not be able to meet contractual deadlines The largest exporter of liquefied natural gas (LNG) in the United StatesCheniere Energy has revealed that it is temporarily reducing gas and electricity consumption to support the Texas electrical system.
Texas Cold Wave Crisis on Global Oil Markets: Impacts Beyond Rice (1)
Power outages continue in Texas, which was hit by a record cold snap
Source: Bloomberg
Will it take a few weeks for the oil company to regain operations?
It will take a while for the oil refinery to recover operations. At least four Texas refineries, which were closed due to severe cold and power outages, could take weeks to repair and restore normal operations, according to people familiar with the matter. More than 20 refineries closed in the state, Louisiana and Oklahoma this week.
Texas oil fields gradually resume operations
Texas oil fields are slowly resuming operations.Marathon oil andDevon Energy and others have begun using restored electricity from the regional power grid and generators to resume production of shale oil in the Eagleford region. Officials said on condition of anonymity because the information was private.
Call to prepare for adverse weather conditions
“None of the major infrastructure was designed to survive the freeze,” Paul Sanky, an oil analyst at Sanky Research, said in a report. He said that the issue was hardly recognized in the energy market.
Energy industry think tanks warn that transmission management companies are not well planned for harsh weather conditions, such as the sudden cold weather that hits Texas. With climate change, these phenomena occur frequently and become more serious.
Electric Power Research Institute (EPRI) launched in JanuaryIn one report, the industry “organically downplays” the possibility of such an event. Ashad Mansour, CEO of the think tank, said yesterday that he must change his attitude, which he had previously treated as extreme weather events. It is unusual for EPRI to criticize the energy industry.
Original title:Texas Oil Patch is beginning to resume operations: Energy Update Actualización 抜 粋）
(We will update by adding the oil refinery operations recovery outlook.)
