• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 13 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 14 mins Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 19 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 27 mins NordStream2
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 6 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 4 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production

Grid Operator Unwittingly Shut Down Natural Gas During Texas Freeze

The Electric Reliability Council of Texas (ERCOT) tried to prevent blackouts during the winter storm by paying large industrial users to cut power consumption, but the program to save electricity actually ended up further eroding natural gas supply because some of those large users they shut down were natural gas infrastructure firms, an analysis by The Wall Street Journal has found.

During the Texas Freeze in the middle of February, ERCOT activated its program to pay big industrial consumers to reduce the electricity they use in an attempt to alleviate the enormous strain on the state’s grid due to record winter demand while many wind and natural gas facilities were down.

However, the Texas grid operator didn’t know which companies exactly were part of the scheme to cut power consumption. It turns out, the Journal’s analysis of grid records shows, that this move further reduced natural gas supply in the state.  

Officials at ERCOT said that the grid operator was unaware that the program to save power actually ended up cutting off some of the much-needed natural gas supply at the time by shutting down critical natural gas infrastructure.

Back in February, ERCOT called for rotating outages across the state as extreme winter weather forced wind power generating units offline, while electricity demand set a new winter peak record. During the winter storms, natural gas production in Texas collapsed by 45 percent, primarily due to freeze-offs.

“We do know [a facility] has qualified and performed to the requirement because we test them, but we don’t know what it is they do,” Kenan Ögelman, ERCOT’s vice president of commercial operations, told the Journal.

The grid operator in Texas also said it would need to re-evaluate whether critically important natural gas infrastructure should be allowed to qualify for the payments-for-reduced consumption program in the future. 

The biggest winners of the Texas Freeze were companies that produce, distribute, and trade natural gas, according to interviews and quarterly earnings reports reviewed by Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News