A winter storm that swept across much of the continental US last week disrupted transportation and power networks and led to widespread shut-ins across oil- and gas-producing regions.
Rystad Energy estimates that about 2 Bcf/D of natural gas production was initially halted in the Bakken Shale, Rockies, and Mid-Continent regions. Those losses were followed by an additional 12 Bcf/D as severe weather moved into the Permian Basin and along the US Gulf Coast.
The Oslo-based consultancy said the full impact could reach 20 to 25 Bcf/D, citing its limited visibility into intrastate pipeline data in Texas and Louisiana. By contrast, impacts in the Appalachian Basin were described as less severe.
Rystad also said production disruptions in the Permian and other parts of Texas are likely to result in a monthly average decline in US oil output of about 390,000 B/D for January. Oil production losses in the Bakken, Rockies, and Mid-Continent regions are expected to be more muted.
Analysts and traders cited by Reuters estimated that US oil producers shut in as much as 2 million B/D over the weekend, representing roughly 15% of national output. Bloomberg reported that up to 10% of US natural gas production, or about 10 Bcf/D, was affected, while demand surged by as much as 18 Bcf/D as temperatures fell across much of the country.
The impacts in Texas, the largest producer of oil and gas in the US, may be short-lived as the Arctic air retreats and temperatures rise back above freezing. The Texas Oil and Gas Association (TXOGA) said on 27 January that production and transmission infrastructure were returning to normal operations.
“Volume improvements continue to increase as higher temperatures improve road accessibility for operators and third-party services,” the association said in a news release.
TXOGA added that producers and service providers have expanded winterization efforts, including the use of methanol injection, temperature-activated pumps, steamer units, equipment shelters, and insulated critical lines and valves.
