Posted on: 02. 26. 21
Last week freezing temperatures and vicious snowstorms hit Texas hard! While we are typically a quickly rebounding state, the unpredictable force of the cold front left at least 3 million people without power for time frames that ranged between hours and days.
Unfortunately, the fallout from the storm wasn’t just a residential consequence. Many industries, including oil and gas, were also negatively impacted and will require some time to recover.
Here’s a closer look at the impact that the weather had on our industry, how it affects national energy, and how long it could take for operations to resume back to normal.
Were There any Winners during the Storm?
While it may seem unfair to local production facilities, oil and gas production companies that have roots outside of Texas witnessed a surge in demand.
With an energy shortage in place for Texas last week, gas producers like Comstock Resources and EQT Corp benefited from selling gas at premium prices that ranged from $15 to $175 per million cubic feet of gas.
Oilfield Services
Oilfield services like those we provide faced complications as the winter weather took hold of Texas and shut down several active on-shore oil fields. Our sector of the industry provides equipment like portable NGL storage and natural gas coolers to production sites.
However, many businesses in our area of the industry are facing some financial losses since oil production has a weeks-long road ahead for recovery.
Shale Oil Production Took a Major Hit
As Texas essentially shut down during this momentous event, shale oil production lost at least five days of progress.
While shale oil production in Texas is predicted to bounce back after the storm front, our industry still has quite the road ahead of us to get back to the 2 million barrels of crude oil lost during the shutdown. The scariest part about this issue is that some smaller production sites may not even make it through the predicted two weeks to recover.
Was There a National Impact?
Texas may have been the most impacted state, but there were power outages and rolling blackouts across the nation that proved this was indeed a national crisis.
According to a release from Governor Greg Abbott’s office, President Joe Biden has even recognized the impact of the crisis and is working with Governor Greg Abbott on relief efforts. The release states that Biden has approved public assistance for all 254 counties in Texas, and individual assistance for 77 counties affected by the storms.
Stay Up to Date on Industry News With Pro-Gas, LLC
We understand that the aftermath of the winter storm is one that comes with plumbing struggles and other issues that can be frustrating. That’s why we are continuing to make every effort to contribute our equipment to local energy production facilities so that at least Texans can recover in the comfort of the energy our industry provides.
If you are a manager of a facility that needs reliable equipment to get your operations back on track the team at Pro-Gas, LLC is ready to help.
Contact us today to learn more about our available products and services.
