Permian Basin Oil and Gas Output Faces Disruption Due to Freezing Temperatures
Tyler Durden

Texas' top electricity regulator issued a "Weather Watch" from Monday morning through Thursday, citing "extreme cold weather" and the potential for snow, which could send electrical demand soaring across the state. 

According to the National Weather Service, snow is forecasted to begin in Houston on Monday evening and accumulate to upwards of 4 inches by Tuesday. After the snow, frigid temperatures are expected to sweep in, bringing dangerously cold conditions that could jeopardize the power grid and energy infrastructure. 

"Weather Watch goes into effect today through January 23 due to forecasted extreme cold weather across the ERCOT region, higher electrical demand, and the potential for lower reserves," the Electric Reliability Council of Texas wrote on X, adding, "Winter precipitation is also expected across parts of the state. Grid conditions are expected to be normal."

Tony Fracasso, a senior branch forecaster at the US Weather Prediction Center, said, "It's a significant storm for so far south." 

"It looks like almost the entirety of Texas has some chance of wintery precipitation,"Fracasso noted. 

The early alert issued by ERCOT implies that extreme cold could pressure the power grid. ERCOT stated that peak electricity demand is expected to rise over the next two days, reaching about 77.2 gigawatts. Even though ERCOT predicts high demand, it anticipates having sufficient supply to meet demand. 

"As freezing temps blanket Texas, the power grid is performing better than ever," Governor Greg Abbott wrote on X Sunday evening, adding, "There is ample supply of power available to meet your needs."

Besides potential grid strains, frigid temperatures could curtail natural gas supplies due to the freezing of oil and gas wells and pipes, known as "freeze-offs" by energy analysts. 

On Tuesday, West Texas temperatures will average around 29F. Through Saturday, average temperatures in the oil-rich Permian basin will remain below the 30-year average of 47F for this time of year. This cold could disrupt oil and gas output by freezing water in wells and pipelines. 

Ahead of the snow, Houston Airports announced that flights at George Bush Intercontinental Airport, William P. Hobby Airport, and Ellington Airport will be suspended on Tuesday morning. 

The storm is expected to blanket snow across the  Gulf Coast and Deep South coastal areas. 

Meteorologist Tony Pann questioned if this wintery weather for the Gulf Coast was a "once-in-a-lifetime event"...

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