Reserve Report

Share this post

Whiteouts & Blackouts

www.reservereport.com

Whiteouts & Blackouts

Matt Sterett
and
Pierre Follea
Feb 16, 2021
1
Share
Share this post

Whiteouts & Blackouts

www.reservereport.com

“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


Line chart of Waha Hub (Permian Basin) day-ahead prices ($ per million British thermal units) showing Natural gas prices jump
FT

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*

Image
h/t @PATCHnHrd

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 -

1
Share
Share this post

Whiteouts & Blackouts

www.reservereport.com
Comments
Top
New
Community

No posts

Ready for more?

© 2023 Reserve Report
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing