Permian natural gas production during the week ended January 26 started out in line with where it has been so far this year, around 21.7 Bcf/d but then dropped dramatically over the weekend because of extremely cold weather and Winter Storm Fern. Temperatures in Midland, Texas plummeted on Friday night, dropping into the low 20s and then falling further from there over the weekend. Sunday night, the low temperature was just below ten degrees, which is extremely low for the area. Temperatures are rising but are expected to remain below the 30-year average for the rest of the week. Production dropped along with the temperatures, with daily production dropping by an estimated 3.1 Bcf/d from Friday to Saturday and then falling further on Sunday. The production decline is starkly visible in the orange line in the chart below.
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- Blog
Ridin’ The Storm Out – Will the Storm Set to Slam the South Lead to a Winter Storm Uri Reprise?
The gas market was roiled this week by the severe winter weather set to sweep across the country. Today, we discuss the market’s jump in advance of Winter Storm Fern’s arrival and whether its effects will rival the tremendous dislocations caused by Uri.
- Analyst Insight
Winter Storm Temporarily Slashes U.S. LNG Feedgas Demand
U.S. LNG feedgas demand averaged 17.2 Bcf/d last week, down about 1.2 Bcf/d week-on-week. Feedgas plummeted over the weekend as Winter Storm Fern hit parts of the country. The storm caused massive production freeze-offs, high domestic demand, and spiking U.S. prices, which in turn disrupted LNG feedgas demand.
- Analyst Insight
Waha Gas Prices Plunge on El Paso Restrictions
Waha natural gas prices plunged deep into negative territory last week, with restrictions on Permian outflows via El Paso a major culprit.
