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Amid Texas freeze, oil producers still shut; governor bans natural gas exports
Alvin Williams, 66, look at his mobile phone while taking a shelter at Gallery Furnishings shop which opened its door and changed into a warming station after winter season weather condition triggered electrical power blackouts in Houston, Texas, U.S. February 17, 2021. REUTERS/Go Nakamura
February 18, 2021
By Devika Krishna Kumar, Gary McWilliams and Jennifer Hiller
HOUSTON (Reuters) – Texas oil producers and refiners stayed shut for a 5th day on Wednesday after numerous days of blistering cold, and the governor purchased a restriction on natural gas exports from the state to attempt to speed the remediation of power.
The cold wave, which has actually eliminated a minimum of 21 individuals and knocked out power to more than 4 million individuals in Texas, is not anticipated to let up till this weekend.
Governor Greg Abbott directed Texas natural gas companies not to deliver outside the state up until Sunday and asked the state energy regulator to implement his export restriction.
“That will also increase the power that’s going to be produced and sent to homes here in Texas,” Abbott stated at a press conference Wednesday.
The restriction triggered a reaction from authorities in Mexico, which depends on imports by means of pipeline from Texas. More than 40% of U.S. natural gas exports originated from Texas.
Texas produces more natural gas and oil than any other U.S. state, and its operators, unlike those in North Dakota or Alaska, are not utilized to handling freezing temperature levels.
The state represents approximately one-quarter of U.S. natural gas production, about 27.8 billion cubic feet daily, however it takes in just part of that, delivering the rest to other states or by means of pipeline to Mexico, according to the U.S. Energy Info Administration.
Texas’ energy sector has actually been struck hard by the cold, with about 4 million barrels daily (bpd) of day-to-day refining capability shuttered and a minimum of 1 million bpd of oil production out too.
Natural gas output likewise plunged. At this time a week earlier, Texas was producing about 7.9 billion cubic feet daily, however that was up to 1.9 billion on Wednesday, according to initial information from Refinitiv Eikon. Natural gas represent half of Texas’ power generation.
Christi Craddick, chair of the Texas Railway Commission, the state’s oil and gas regulator, stated late Wednesday the firm had actually gotten the governor’s demand and was evaluating it.
The demand established a video game of political football, according to an individual knowledgeable about the matter, in between groups that do not have the authority to hinder interstate commerce.
U.S. gas pipeline exports to Mexico dropped to 3.8 billion cubic feet (bcf) daily on Wednesday, below an average over the previous one month of 5.7 bcf, according to information from Refinitiv, about three-quarters of which originates from Texas.
Mexico’s economy minister, Tatiana Clouthier, stated Wednesday she had actually called the U.S. federal government’s agent in Mexico, looking for to ensure materials of natural gas for Mexico throughout the cold wave.
“By not acting together, the results could be more complicated,” she stated on Twitter.
One freight of melted natural gas (LNG) filled at Freeport LNG in Texas on Wednesday had actually been slated to cruise to Mexico, according to Refinitiv Eikon information. The tanker stayed off the coast of Texas. A Freeport LNG spokesperson decreased to comment.
Operations at Cheniere Energy’s Corpus Christi plant, the state’s biggest LNG manufacturer, were stopped by weather condition interruptions today. A representative decreased to discuss the governor’s order.
In general, day-to-day U.S. natural gas production is down by approximately 19% from completion of recently to 71.9 bcf daily on Wednesday, according to initial Eikon information.
With more snow anticipated in essential oil-and-gas production locations like the Permian and northern Louisiana, production is anticipated to remain offline through Friday, stated Anna Lenzmeier, energy expert at BTU Analytics.
“The second half of this week is shaping up to be just as tumultuous as the long weekend, and natural gas prices could continue to top triple digits before the weekend,” she stated.
A Number Of Texas ports, consisting of Houston, Galveston and essential LNG exporting websites at Freeport and Sabine Pass were closed due to weather, according to U.S. Coast Guard Petty Officer Jonathan Lally.
One bcf of gas can provide about 5 million U.S. houses daily.
Producers in the Permian Basin, the biggest U.S. oilfield, stated electrical interruptions were the primary problem, which up until power was brought back, rebooting any frozen devices would be tough.
Approximately 1 million bpd of unrefined production has actually been stopped, according to Wood Mackenzie experts, and it might be weeks prior to it is completely brought back.
The supply interruptions drove more boosts in oil costs, which ended the session up more than 1.5%. U.S. natural gas reached a more than three-month high after increasing more than 10% on Tuesday.
The freeze has actually likewise sent out Canadian natural gas exports to the United States skyrocketing to levels last seen in 2010, stated IHS Markit expert Ian Archer.
Net Canadian exports have actually leapt above 7.5 bcf a day for the last number of days and Archer approximated they were close to 8 bcf daily on Wednesday.
“We are seeing just absolutely huge withdrawals and exports to the U.S.,” Archer stated.
(Graphic: U.S. natural gas production drops, https://fingfx.thomsonreuters.com/gfx/ce/gjnvwzalmpw/Pasted%20image%201613575433245.png)
(Reporting by Devika Krishna Kumar in New York City and Gary McWilliams in Houston; Extra reporting by Stephanie Kelly, Laila Kearney and Scott DiSavino in New York City, Nia Williams in Calgary and Arpan Varghese and Diptendu Lahiri in Bengaluru; Modifying by Matthew Lewis, Leslie Adler and Kim Coghill)
Alvin Williams, 66, look at his mobile phone while taking a shelter at Gallery Furnishings shop which opened its door and changed into a warming station after winter season weather condition triggered electrical power blackouts in Houston, Texas, U.S. February 17, 2021. REUTERS/Go Nakamura
February 18, 2021
By Devika Krishna Kumar, Gary McWilliams and Jennifer Hiller
HOUSTON (Reuters) – Texas oil producers and refiners stayed shut for a 5th day on Wednesday after numerous days of blistering cold, and the governor purchased a restriction on natural gas exports from the state to attempt to speed the remediation of power.
The cold wave, which has actually eliminated a minimum of 21 individuals and knocked out power to more than 4 million individuals in Texas, is not anticipated to let up till this weekend.
Governor Greg Abbott directed Texas natural gas companies not to deliver outside the state up until Sunday and asked the state energy regulator to implement his export restriction.
“That will also increase the power that’s going to be produced and sent to homes here in Texas,” Abbott stated at a press conference Wednesday.
The restriction triggered a reaction from authorities in Mexico, which depends on imports by means of pipeline from Texas. More than 40% of U.S. natural gas exports originated from Texas.
Texas produces more natural gas and oil than any other U.S. state, and its operators, unlike those in North Dakota or Alaska, are not utilized to handling freezing temperature levels.
The state represents approximately one-quarter of U.S. natural gas production, about 27.8 billion cubic feet daily, however it takes in just part of that, delivering the rest to other states or by means of pipeline to Mexico, according to the U.S. Energy Info Administration.
Texas’ energy sector has actually been struck hard by the cold, with about 4 million barrels daily (bpd) of day-to-day refining capability shuttered and a minimum of 1 million bpd of oil production out too.
Natural gas output likewise plunged. At this time a week earlier, Texas was producing about 7.9 billion cubic feet daily, however that was up to 1.9 billion on Wednesday, according to initial information from Refinitiv Eikon. Natural gas represent half of Texas’ power generation.
Christi Craddick, chair of the Texas Railway Commission, the state’s oil and gas regulator, stated late Wednesday the firm had actually gotten the governor’s demand and was evaluating it.
The demand established a video game of political football, according to an individual knowledgeable about the matter, in between groups that do not have the authority to hinder interstate commerce.
U.S. gas pipeline exports to Mexico dropped to 3.8 billion cubic feet (bcf) daily on Wednesday, below an average over the previous one month of 5.7 bcf, according to information from Refinitiv, about three-quarters of which originates from Texas.
Mexico’s economy minister, Tatiana Clouthier, stated Wednesday she had actually called the U.S. federal government’s agent in Mexico, looking for to ensure materials of natural gas for Mexico throughout the cold wave.
“By not acting together, the results could be more complicated,” she stated on Twitter.
One freight of melted natural gas (LNG) filled at Freeport LNG in Texas on Wednesday had actually been slated to cruise to Mexico, according to Refinitiv Eikon information. The tanker stayed off the coast of Texas. A Freeport LNG spokesperson decreased to comment.
Operations at Cheniere Energy’s Corpus Christi plant, the state’s biggest LNG manufacturer, were stopped by weather condition interruptions today. A representative decreased to discuss the governor’s order.
In general, day-to-day U.S. natural gas production is down by approximately 19% from completion of recently to 71.9 bcf daily on Wednesday, according to initial Eikon information.
With more snow anticipated in essential oil-and-gas production locations like the Permian and northern Louisiana, production is anticipated to remain offline through Friday, stated Anna Lenzmeier, energy expert at BTU Analytics.
“The second half of this week is shaping up to be just as tumultuous as the long weekend, and natural gas prices could continue to top triple digits before the weekend,” she stated.
A Number Of Texas ports, consisting of Houston, Galveston and essential LNG exporting websites at Freeport and Sabine Pass were closed due to weather, according to U.S. Coast Guard Petty Officer Jonathan Lally.
One bcf of gas can provide about 5 million U.S. houses daily.
Producers in the Permian Basin, the biggest U.S. oilfield, stated electrical interruptions were the primary problem, which up until power was brought back, rebooting any frozen devices would be tough.
Approximately 1 million bpd of unrefined production has actually been stopped, according to Wood Mackenzie experts, and it might be weeks prior to it is completely brought back.
The supply interruptions drove more boosts in oil costs, which ended the session up more than 1.5%. U.S. natural gas reached a more than three-month high after increasing more than 10% on Tuesday.
The freeze has actually likewise sent out Canadian natural gas exports to the United States skyrocketing to levels last seen in 2010, stated IHS Markit expert Ian Archer.
Net Canadian exports have actually leapt above 7.5 bcf a day for the last number of days and Archer approximated they were close to 8 bcf daily on Wednesday.
“We are seeing just absolutely huge withdrawals and exports to the U.S.,” Archer stated.
(Graphic: U.S. natural gas production drops, https://fingfx.thomsonreuters.com/gfx/ce/gjnvwzalmpw/Pasted%20image%201613575433245.png)
(Reporting by Devika Krishna Kumar in New York City and Gary McWilliams in Houston; Extra reporting by Stephanie Kelly, Laila Kearney and Scott DiSavino in New York City, Nia Williams in Calgary and Arpan Varghese and Diptendu Lahiri in Bengaluru; Modifying by Matthew Lewis, Leslie Adler and Kim Coghill)
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question, you know it's been at least
15 years since I've been following the news, no 10 my folks do that, hmm. what was the question again !?
where you read about this ?
of course I can, it was here
on U-S-NEWS.COM
