It is expected, due to cold weather in the United States, that oil and gas production will be disrupted for several days, if not weeks. Texas is the largest producer of oil and natural gas in the United States but it is not accustomed to dealing with extremely low temperatures.
Many refineries in Texas have closed although drops in the temperature rarely lead to a halt in large quantities of production, and because Texas was hit with the coldest weather in 30 years, it is likely that there will be a decrease of about 500 thousand to 1.2 million barrels per day in state production.
The largest shale oil field in Texas has stopped working, due to icy roads, blackouts, and an interruption of cellular services. Chevron and Exxon reported that these factors had a significant impact on production capacity.
These factors pushed oil prices to continue their rise, with WTI crude oil trading at $60 a barrel, its highest levels in 13 months, and those increases are expected to continue, targeting $65. The continued recovery in demand in light of the current supply issues in the United States and production restrictions from OPEC+could solidify prices in the coming period.
Many refineries in Texas have closed although drops in the temperature rarely lead to a halt in large quantities of production, and because Texas was hit with the coldest weather in 30 years, it is likely that there will be a decrease of about 500 thousand to 1.2 million barrels per day in state production.
The largest shale oil field in Texas has stopped working, due to icy roads, blackouts, and an interruption of cellular services. Chevron and Exxon reported that these factors had a significant impact on production capacity.
These factors pushed oil prices to continue their rise, with WTI crude oil trading at $60 a barrel, its highest levels in 13 months, and those increases are expected to continue, targeting $65. The continued recovery in demand in light of the current supply issues in the United States and production restrictions from OPEC+could solidify prices in the coming period.
