• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 8 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 2 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 9 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours An Indian Opinion on What is Going on in China
  • 1 day Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 13 hours Can Technology Keep Coal Plants Alive and Well?
  • 2 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 3 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 6 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 11 hours Storage of gas cylinders
  • 4 days Nord Stream - US/German consultations
OPEC Cuts 2021 Oil Demand Forecast

OPEC Cuts 2021 Oil Demand Forecast

In this month’s report, OPEC…

Texas Governor Bans Natural Gas Exports

Texas Governor Greg Abbott has banned the exports of natural gas until normal power supply is restored, Reuters reports, citing a statement by the governor.

The export ban is in effect until Sunday, with Abbott noting, “That will also increase the power that’s going to be produced and sent to homes here in Texas.”

What social media users are calling the Texas freeze wreaked havoc on the Texas grid and its energy industry as wellheads and production pads have not been insulated against freezing temperatures. As a result, natural gas production has slumped, which led to price spikes topping the ceiling of $9,000 per MWh imposed by the energy regulator of the state.

The Lone Star state produces around 25 percent of the U.S. total. In December, the state’s share was between 22 and 27.8 billion cu ft daily. Now, this has fallen to between 8 and 10 billion cu ft, according to different estimates.

According to industry insiders cited by Natural Gas Intelligence, at least 7 billion cu ft of production capacity had been shut-off by the frigid weather, which caused wellhead freezing, gas processing plant shut-ins, and pipeline outages.

According to Refinitiv data from Reuters, the production rate this week fell from 7.9 billion cu ft before the freeze to 1.9 billion cu ft now.

Texas exports a lot of its natural gas output to other states and Mexico: as much as 40 percent of Mexico’s U.S. gas imports come from Texas. These exports fell, too, this week, from 5.7 billion cu ft to 3.8 billion cu ft.

Because of its reliance on U.S. imports, Mexico, in its northern part, was also hit by the Texas gas production outage this week. Media reports said that on Monday, as many as 4.77 million people in northern Mexico were without power due to the events in Texas.

By Charles Kennedy 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