Texas Storm Wreaks Havoc on US Oil Production
(UnitedVoice.com) – Historic winter storms moved through Texas and other states this week, leaving millions of people without power for days. Families are grappling with how to deal with the unprecedented amount of snow and ice that Mother Nature dumped on them. However, it’s not just private residents who are suffering — one of the most important industries in America is having a hard time too.
According to February 17 reports, the storms caused one of the biggest drops in oil production in history. There’s been a 27% decrease per day in the US output. That translates into 3 million fewer barrels each day in the Permian Basin (the area between Eastern New Mexico and West Texas).
An update on our cold hurricane in Texas. Shale output hit, as much as 1 million bpd shut in. Oil producers had power cut in the Permian Basin, too. No trucks moving sand, cement. Water disposal places lost power. Frozen equipment.
Bring on 100 degrees! https://t.co/wB43uFvBa2
— Jennifer Hiller (@Jennifer_Hiller) February 17, 2021
At the same time, the price of crude oil passed $60 per barrel for the first time since the COVID-19 pandemic began last year. The American people are feeling it at the pump. According to AAA, the national average is $2.58 per gallon as of February 18 — up from $2.49 just a week ago. Of course, gas prices depend on several factors but the decreased production due to winter storms certainly doesn’t help.
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