Whiteouts & Blackouts
“The East Texas oilfield looks today a bit like the Samotlor field in Siberia” - Javier Blas
Yesterday afternoon, it was 55F (13C) in Cambridge, England
At the same time, the wind-chill in Corpus Christi, TX was 1F (-17C)
We’re not sure if Hell froze over…but Texas certainly did
BLACKOUTS.
Permian oil output is down ~1MM bbl/d
U.S. GoM refiners runs rates are down ~3MM bbl/d
Last month, headlines read “Wind power overtakes coal in Texas electricity generation”.
*Bad timing*
The “R” in ERCOT stands for Reliability.
Well, the Texas power grid has been anything *but that* for the last couple days.
The cold has now frozen wind-mills, as well as many layers of the gas system.
Outage Stats:
~4MM homes & businesses lost power in Texas
~5MM homes & businesses went dark in Mexico
What happened?
Demand exceeded the max supply forecast
At the same time, 30% of capacity went off-line
And the ISO doesn’t know when it will be fixed…
If you’re looking for more details on the outages, then we recommend following Jesse Jenkins for updates -
OTHER NEWS.
On Wed nights (9PM CT), @EnergyCredit1 & @nimblephatty host a show on Clubhouse - check it out
A couple days back, Dan Yergin dropped into separate room / talk on oil on Clubhouse - the app has been a great place to discuss oil & gas
We took the long-weekend off - hopefully you did too - we’ll be back w/ our regularly scheduled programming next week -