TEXAS (WBAP/KLIF)- The Texas Oil and Gas Association releases a report of the current state of the oil and gas industry and the effects of the winter weather.
According to S&P Global Platts, 30-day average for Texas Onshore production continues strong during February 2022 with daily production averaging 1.5 Bcf/d more or almost 7% more than 2021.
S&P Global Platts is estimating Texas Onshore production of 23.44 Bcf on Feb. 2 and predicting 22.21 on Feb. 3, an anticipated dip of about 5% and within normal operational expectancy.
For the South, which includes Texas, overall demand for both power generation and residential/commercial from Feb. 2 to Feb. 3 is expected to increase about 13%.
Texas anticipated onshore daily production of over 22 Bcf combined with over 17 Bcf/d of storage capacity withdrawal far exceeds total Texas demand. TXOGA officials said there is no gas shortage. Typically, Texas consumption (residential, commercial, industrial, power generation, etc.) is approximately only 42% of the total Texas production.
“With proper planning and production along with natural gas storage, ample opportunity to purchase product exists in the market. Any issues are likely a reflection of direct infrastructure or localized challenges,” said TXOGA President Todd Staples.
Early indicators for Thursday’s nominations suggest production declines will increase throughout the day. Factors include icy roads, some power loss, high winds, mechanical issues and freezing equipment that is being addressed by personnel in the field. Pipelines are reporting good pressure and plenty of storage even with some production declines which are anticipated and unavoidable in inclement weather. Updates will be provided in Friday’s summary but production and storage yields more natural gas in Texas than is demanded.
Some early reports of transportation problems and getting service trucks to sites due to icy road conditions could have impact if prolonged.
ERCOT reports it is anticipated that peak demand will occur on Friday at 8:00am.
In terms of power outages, the Texas Division of Emergency Management anticipates that the weather “will likely cause localized power outages across Texas, as ice accumulates and causes trees to fall/hang on power lines.”
The PUC encourages Texans who experience a localized outage to contact their utility provider.
