Texas natural gas production, processing, transmission, and storage sectors prepared with increased production and storage in 2022. S&P Global Platts estimates Texas production has increased 6% in 2022 over 2021 with an average daily production of 25.1 bcfd of dry gas.
Texas power demand is anticipated to increase through Dec. 25. The greatest demand is the power sector, which is estimated to increase from 4.4bcf/d on December 21 to 8.34 bcfd by Dec. 23 then steadily dropping to normal levels after Christmas Day. Residential and commercial customer demand is also anticipated to increase by approximately 2.5 bcf from Dec.21 to 23, according to a news release issued Friday.
Typically, Texas consumption (residential, commercial, industrial, power generation, etc.) is approximately 45-50% of the total Texas production.
Across the U.S. there is a slight reduction of 0.9 bcf from Dec. 22 to 23 in dry gas production from 94.0 to 93.1 bcf with the Marcellus and Texas being the largest producers.
Storage is the key to ensuring access to needed gas during high demand surges. S&P Global Platts reports that across the U.S. for the first time since early January 2022, total U.S. inventories moved from a 15 bcf deficit to the five-year average for the week ended December 9 to a 22 bcf surplus to the five-year average for the week ended Dec. 16. This is good news as storage withdrawals are expected to increase across the country in anticipation of the increased demand, the release said.
Preplanning and contracting is imperative during extreme temperature shifts.
TEXAS FIELD CONDITIONS
Pipelines reporting good pressure and plenty of storage even with some production declines. Some production decreases reported as expected. No significant issues reported. Minor issues in the field are due to instrument error, compression issues, electricity loss, and some third-party takeaway issues. Isolated power issues are being quickly resolved with notification to PUC and ERCOT.
TEXAS POWER STATUS
ERCOT reports operations normal as of 8:12 a.m. Dec. 23. Peak demand is anticipated to occur at 11 a.m. Available capacity at peak demand is expected to be 84,467 MW, with the demand forecast at 72,991 MW. There is expected to be enough power to meet demand.
WINTERIZATION IN THE FIELD
Onsite, seasonal weatherization techniques include methanol injection, temperature activated pumps, steamer units, equipment shelters, and insulated critical lines and valves. Additional pre-storm and offsite measures include:
>> Secure shelter/housing and pre-positioning personnel to be closer to assets for access.
>> Adjust employee schedules to ensure planning and preparations in place.
>> Have extra methanol and other supplies on trucks.
>> Preparing and draining tanks to increase on-site storage and provide a temporary buffer for necessary third-party movement of product.
>> Pre-inspection of assets prior to weather event.
>> “Line-packing” to maximize product and pressurization in pipelines.
>> Communication with third party vendors to prepare for inclement weather contingencies.
>> Identification of the most critical assets to help maintain power from electric utilities.
IMPACT OF WEATHER ON FIELD OPERATIONS
Personnel safety and ensuring safe operations are the first priorities of operators. Many elements can impact continued field operations outside of the operator’s control.
>> Transportation – the accumulation of precipitation can impact operators’ ability to access remote well sites to check on operations and make any needed adjustments.
>> Third party contractor disruptions.
>> Lightning strikes.
>> Loss of power.
>> Telecommunication loss.
INDUSTRY ACTIONS
Read here how the Texas oil and natural gas industry prepares for winter weather events
WEATHER STATUS
Extremely cold air mass shifted over Texas beginning early Thursday, impacting the entire state by late Thursday night.
Much of Texas is expected to face temperatures remaining below freezing – in some cases well below freezing – for dozens of hours.
Wind chills below zero across much of the northern half of the state are expected Friday morning.
Most Texans should expect frigid conditions through at least Sunday morning, with morning lows around freezing Monday and Tuesday.
