NATURAL GAS PRODUCTION, TRANSPORTATION AND STORAGE
Texas natural gas production, processing, transmission, and storage sectors are prepared with ample production and storage. Texas production has been stable over the last week across the state, and RBN Energy reports production averaging 27.15 Bcf/d this week, a 2 Bcf/d increase over last year at this same time.
According to S&P Platts, the biggest U.S. level fundamental change on Friday, January 12 is a 2,313 MMcf/d increase in PowerBurn. The increase in PowerBurn was driven by the Texas and Northeast regions, which increased 1,427 and 580 MMcf/d, respectively.
Preplanning and contracting is imperative during extreme temperature shifts. All sectors are reporting stable conditions in addition to precautionary measures such as increased line pack and storage in anticipation of the upcoming weather. No major concerns have been reported at this time, and ERCOT is reporting ample reserves even with increased demand.
TEXAS FIELD CONDITIONS
Pipelines reporting good pressure and plenty of storage. Some minor production decreases reported as expected. No significant issues reported.
TEXAS POWER STATUS
ERCOT reports operations normal as of Saturday, January 13 at 9:45 AM. Peak demand is anticipated to occur at 4:00 PM. Available capacity at peak demand is expected to be 100,225 MW, with the demand forecast at 45,330 MW. There is expected to be enough power to meet demand.
Source: ERCOT, 1/13/24, 9:45 AM
WEATHER STATUS
Extremely cold air is expected to arrive over Texas beginning this weekend, impacting the entire state by Sunday/Monday.
Much of Texas is expected to face temperatures below freezing for dozens of hours.
Wind chills below zero are anticipated across much of the northern half of the state Sunday and Monday.
The National Weather Service Provided the following summary for the upcoming week:
Snow in the north and strong winds across NM today may affect travel.
Sunday into Monday: Snow in Oklahoma and Arkansas is likely; light wintry mix/freezing rain over North Central, East Texas into Northwest Louisiana possible. May result in hazardous travel conditions.
Colder temperatures (25-35 degrees below normal) expected for northern portions of the Region on Saturday, January 13 and Sunday, January 14; expanding across most of the Region by Monday, January 15
The Permian will be experiencing extreme cold, particularly with wind chill factor:
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:
Securing shelter/housing and pre-positioning personnel to be closer to assets for access
Adjusting employee schedules to ensure planning and preparations are in place
Having extra methanol and other supplies on trucks
Preparing and draining tanks to increase on-site storage and providing a temporary buffer for necessary third-party movement of product
Pre-inspection of assets prior to weather events
“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 more about how the Texas oil and natural gas industry prepares for winter weather events
STATEWIDE RESOURCES
>> TDEM maintains a webpage with information and resources here.
>> TxDOT provides road closure information in real-time, which can be found here.
>> RRC reports road issues to TXDOT. You can submit a road issue form here.
>> RRC notice to operators ahead of winter weather can be found here.
>> RRC provides a weatherization practices guidance document here.
>> RRC maintains a 24-hour, toll-free emergency line, 844-773-0305, to report emergencies, including leaks or spills and damage to gas pipelines.
>> PUC provides an electric outage map, which can be found here.
>> TCEQ reports water and sewage outages here.
>> ERCOT shares a grid condition dashboard, which can be found here.
For more information on how the Texas oil and natural gas industry prepares for winter weather, visit TXOGA.org/WinterReady.
