Web Desk February 17, 2021

Severe frosts in the United States disrupted the operation of the power system in Texas, causing power outages, which led to the suspension of a number of large oil refineries, a reduction in oil and gas production, and also created force majeure for pipelines.


Energy Aspects Ltd estimates that the total suspended refinery capacity is about 4 million barrels per day (b/d). In general, refineries located on the Gulf Coast account for almost half of the petroleum products produced in the United States. It also became known about the suspension of the work of the Texas oil refineries Marathon Petroleum Corp., Total SE and Exxon Mobil Corp.


Before the cold weather, the US oil refining industry was already working at only 80% of its total capacity of 18 million barrels per day.


According to Bloomberg, due to severe frosts, oil production in the region fell to 2 million b/d, and gas production – by 238 million cubic meters.


In the central and southern states of the United States, they were not ready for the Arctic frosts that covered the country, and wholesale prices for electricity and gas rose thousands of times.


“After seeing North American WTI oil prices drop to -$ 37 I thought that nothing could amaze me anymore. But current prices for physical gas supplies in the US regional market are beyond comprehension. Gas prices in Oklahoma (OGT) jumped to $ 500 per mBtu ($ 17.7 thousand per 1,000 cubic meters) and settled at $ 377 ($ 13.3 thousand). An increase of 10,795 times,” Bloomberg’s leading energy correspondent Javier Blas tweeted.


He noted that at the Waha regional hub in West Texas, prices rose to $ 164 per mBtu ($ 5.8 thousand per 1,000 cubic meters)


Source: Turan News Agency

Leave a comment.