The 2021 Texas freeze has led to estimated damages of $100 billion in the lone star state, and with a cold front approaching, analysts ask themselves if the grid is better prepared this time around
The 2021 Texas freeze has led to up to $100 billion in damages.Regulators have worked to prepare both utilities and natural gas producers for extreme situations, but cooperation between them could have been much better.Beginning this Thursday , another cold front will engulf Texas. Night time low temperatures in Dallas, TX for example are forecast to be 10, 18, and 24 degrees from the 22nd to the 24th. A potentially record breaking cold snap lasting right up until Christmas Eve. Perfect timing.
On the natural gas side, this storm nearly disrupted the entire gas business in Texas. For example, from early February to February 18 gas production in the Permian Basin had declined by 85% and two thirds of gas processing plants had outages. Gas pumps and other equipment at the wellhead froze. The declines in the gas production system began prior to electrical outages. Gas industry failures especially with respect to weatherization appear to have exacerbated electricity shortages.
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