Texas energy sector struggles to thaw after deep freeze

By Arpan Varghese

(Reuters) – A deep freeze kept the Texas energy sector in the dark for a fifth day on Wednesday, with Houston’s major shipping channel closed overnight and at least a fifth of U.S. refining output offline.

About 500,000 to 1.2 million bpd of crude production has also been shut, including in the Permian, the largest U.S. oilfield, and it could be weeks before it is fully restored, industry analysts said.

The cold snap, which has killed 21 people and knocked out power to millions of people in Texas is not expected to let up until this weekend.

Electricity prices in Texas continued to surge, as utilities scrambled to meet heating demand. Next-day power for Wednesday at the ERCOT North hub, which includes the cities of Dallas and Fort Worth, spiked to a record of $8,800 per MWh, a nearly six-fold jump from $1,490 on Tuesday.

Texas produces more oil and natural gas than any other U.S. state, and its operators, unlike those in North Dakota or Alaska, are not used to dealing with frigid temperatures.

“A production rebound could potentially take more than a week or two for the majority of oil and gas wells, but it might take longer for production from nearly all wells to recover,” analysts at Citigroup wrote.

The Houston Ship Channel, which had opened for some vessel traffic during Tuesday, was shut again overnight. The 53-mile (85 km) waterway crucial to oil and fuel exports, has been closed since Feb. 14.

“We have 4 delayed incoming vessels, which is not much. The shipping channel is not operating at night time due to weather hazards and we are planning to open the channel in another 3 hours from now. Last night we had one order cancellation due to the weather,” a Houston Pilots dispatcher said.

The supply disruptions drove further gains in oil prices on Wednesday, although U.S. natural gas prices eased after rising more than 10% on Tuesday.

The state’s power grid operator, the Electric Reliability Council of Texas (ERCOT), which had instituted rolling blackouts as demand overwhelmed generation, on Wednesday said it had directed utilities to restore power to 600,000 households last night, with 2.7 million still experiencing an outage.

Nearly 4 million barrels per day of refining capacity has been knocked out, Reuters calculations found.

Cold weather primarily impacts instrumentation that monitors and operates refinery units.

The cold has shut natural gas production and pipelines, which refineries use in power generation. Widespread power outages or instability of external power supply can force shutdowns.

Apart from the refinery shutdowns in Texas, including the nation’s largest, Motiva’s 600,000 bpd Port Arthur facility, Citgo Petroleum Corp said it was continuing to run its 418,000 barrel-per-day Lake Charles plant in Louisiana at reduced rates.

Citgo said it was also finalizing “start-up plans” subject to re-establishing third party services, at its 167,500 barrel-per-day bpd Corpus Christi, Texas refinery.

(Reporting by Arpan Varghese and Diptendu Lahiri in Bengaluru; Editing by Barbara Lewis)

Rare deep freeze leaves more than 2 million Texas customers without power

(Reuters) – A rare deep freeze in Texas that raised demand for power forced the U.S. state’s electric grid operator on Monday to impose rotating blackouts that left more than 2 million customers without power.

The PowerOutage.us website – an ongoing project created to track power outages – said 2,629,684 customers were experiencing outages at 9:44 a.m. ET (1444 GMT).

President Joe Biden declared an emergency on Monday, unlocking federal assistance to Texas, where temperatures on Monday ranged from minus 8 to 21 degrees Fahrenheit (minus 22 to minus 6 Celsius).

Apart from Texas, much of the United States from the Pacific Northwest through the Great Plains and into the mid-Atlantic states was in the grip of bone-chilling weather over the three-day Presidents Day holiday weekend.

The Electric Reliability Council of Texas (ERCOT) sought to cut power use in response to a winter record of 69,150 MW on Sunday evening, more than 3,200 MW higher than the previous winter peak in January 2018.

About 10,500 MW of customer load was shed at the highest point, enough power to serve approximately two million homes, it said, adding that extreme weather caused many generating units across fuel types to trip offline and become unavailable.

As of early Monday, it said over 30,000 MW of generation had been forced off the system, and rotating outages would likely last throughout the morning and could be initiated until the weather emergency ended.

“Every grid operator and every electric company is fighting to restore power right now,” ERCOT President and CEO Bill Magness said in a statement.

The storms knocked out nearly half the state’s wind power generation capacity on Sunday. Wind generation ranks as the second-largest source of electricity in Texas, accounting for 23% of state power supplies, ERCOT estimates.

Of the 25,000-plus megawatts of wind power capacity normally available in Texas, 12,000 megawatts were out of service on Sunday morning, an ERCOT spokeswoman said.

A level three emergency notice was issued by the regulator, urging customers to limit power usage and prevent an uncontrolled systemwide outage.

The National Weather Service said an Arctic air mass had spread southwards, well beyond areas accustomed to freezing weather, with winter storm warnings posted for most of the Gulf Coast region, Oklahoma and Missouri.

The spot price of electricity on the Texas power grid spiked more than 10,000% on Monday. [NGA/]

(Reporting by Aishwarya Nair and Diptendu Lahiri in Bengaluru; Editing by Bernadette Baum, David Goodman and Howard Goller)

Midwest U.S. in brutal grip of colder-than-Antarctica deep freeze

A pedestrian stops to take a photo by Chicago River, as bitter cold phenomenon called the polar vortex has descended on much of the central and eastern United States, in Chicago, Illinois, U.S., January 29, 2019. REUTERS/Pinar Istek

By Suzannah Gonzales

CHICAGO (Reuters) – Frozen Arctic winds brought record-low temperatures across much of the U.S. Midwest on Wednesday, unnerving residents accustomed to brutal winters and keeping them huddled indoors as offices closed and even mail carriers halted their rounds.

Classes were canceled Wednesday and Thursday in many cities, including Chicago, home of the nation’s third-largest school system, and police warned of the risk of accidents on icy highways.

Man blows snow during a winter storm in Buffalo, New York, U.S., January 30, 2019. REUTERS/Lindsay Dedario

Man blows snow during a winter storm in Buffalo, New York, U.S., January 30, 2019. REUTERS/Lindsay Dedario

In a rare move, the U.S. Postal Service appeared to temporarily set aside its credo that “neither snow nor rain … nor gloom of night” would stop its work: it halted deliveries from parts of the Dakotas through Ohio.

Temperatures in parts of the Northern Plains and Great Lakes plunged to as low minus 42 Fahrenheit (minus 41 Celsius) in Park Rapids, Minnesota, and minus 31F in Fargo, North Dakota, according to the National Weather Service. The frigid winds were bound for the U.S. East Coast later on Wednesday into Thursday.

Andrew Orrison, a meteorologist with the service, said the some of the coldest wind chills were recorded in International Falls, Minnesota, at minus 55F (minus 48C). Even the South Pole in Antarctica was warmer, with an expected low of minus 24F (minus 31C) with wind chill.

The bitter cold was caused by a displacement of the polar vortex, a stream of air that normally spins around the stratosphere over the North Pole, but whose current was disrupted and was now pushing south.

An Illinois police department found a fictitious cause for the icy blast, posting on Facebook that its officers had arrested Elsa, the frosty character from the Disney movie “Frozen,” for bringing the arctic air to the Midwest.

Aftermath of an accident in Grand Rapids, Michigan, U.S., January 29, 2019 in this picture obtained from social media. Picture taken January 29, 2019. JASON COFFELT/via REUTERS

Aftermath of an accident in Grand Rapids, Michigan, U.S., January 29, 2019 in this picture obtained from social media. Picture taken January 29, 2019. JASON COFFELT/via REUTERS

The McLean Police Department shared a staged photo of officers putting a woman dressed in a blue princess gown in pink handcuffs and escorting her into a police car.

Officials opened warming centers across the region, and in Chicago, police stations were open to anyone seeking refuge from the cold. Five city buses were also deployed to serve as mobile warming centers for homeless people.

The Chicago Police Department said that at most, it could encourage people to get out of the cold.

“But we will never force someone,” police officer Michael Carroll said.

At least five deaths relating to cold weather have been reported since Saturday in Iowa, Indiana, Illinois, Wisconsin and Minnesota, local media reports said.

Hundreds of flights, more than half of those scheduled, were canceled on Wednesday out of Chicago O’Hare and Chicago Midway international airports, according to the flight tracking site FlightAware.

Train service Amtrak said it would cancel all trains in and out of Chicago on Wednesday.

Most federal government offices in Washington D.C. opened three hours late on Wednesday due to the frigid weather already impacting the area.

(Reporting by Suzannah Gonzales, additional reporting by Rich McKay in Atlanta, and Gina Cherelus and Jonathan Allen in New York; Editing by Scott Malone and Bernadette Baum)

Land of the freeze: arctic wave hits U.S. Midwest, Northeast

Trees are seen after the record snowfall in Erie, Pennsylvania, U.S., December 26, 2017 in this picture obtained from social media. Picture taken December 26, 2017.

By Gina Cherelus

NEW YORK (Reuters) – Most of the U.S. Northeast and Midwest grappled with a post-Christmas deep freeze on Thursday, with temperatures expected to plunge as low as minus 20 degrees F (minus 29 C) in North Dakota as forecasters warned that the harsh winter weather could usher in the New Year.

Tioga, about 200 miles (322 km) north of Bismarck, took honors as the coldest spot in the continental United States, according to National Weather Service (NWS) spokesman Bob Oravec. The mercury dived to minus 15 F early on Thursday afternoon.

“By tomorrow morning, low temperatures will probably be 15 to 20 degrees below zero in the northern and northwestern areas of North Dakota, maybe even in north Minnesota,” Oravec said.

On Wednesday, International Falls, Minnesota, about 300 miles north of Minneapolis, lived up to its reputation as the “Icebox of the Nation.” The low temperature there dropped to 37 degrees F below zero, breaking the old record for the day of 32 degrees below, set in 1924. Temperatures moderated to minus 2 F on Thursday.

Mayor Bob Anderson told Reuters that a local paper mill had to reduce operations because of the cold. But he said mail was still being delivered, and the town’s roughly 6,000 weather-hardened residents were taking the cold in stride.

For most of the region encompassing New England, northern Pennsylvania and New York, the NWS issued wind chill advisories or warnings. Temperatures in the region ranged from highs in the teens and 20s F to lows in the single digits or below zero.

For upstate New York, east of Lake Ontario, the NWS warned of “dangerously” cold wind chills of minus 5 F to minus 30 F through Friday. In northern Vermont, conditions are even more brutal, with wind chills threatening to bottom out at minus 40 F.

On Twitter, the hashtag #ItsSoCold was the No. 1 trending topic in the United States on Thursday as social media users expressed their frustration with Old Man Winter.

“When your landlord doesn’t have the heat on during the workweek so the cat sitting in your lap isn’t just cute, but also practical. #ItsSoCold,” wrote user Walton Clark on Twitter.

Erie, a city of about 100,000 on the shores of Lake Erie in northwest Pennsylvania, was expecting a fresh round of winter storms that could bring as much as an additional 10 inches (25 cm) of “lake effect” snow, forecasters said. The area is already buried under more than 65 inches from a record-breaking storm earlier this week.

The accumulations, heavy even by the standards of the Great Lakes’ eastern shores, resulted from a wave of Arctic air moving across the relatively mild waters of the lake, forecasters said.

Light and heavy snow was also expected to fall this weekend in many other parts of the United States, from Montana to Maine, forecasters said.

(Reporting by Gina Cherelus in New York; Additional reporting by Chris Kenning in Chicago; Editing by Matthew Lewis)