Texas cold snap slowed natural gas production, stoking electricity worries

Sign up for The Brief, our every day publication that retains readers in control on probably the most important Texas information.

During Texas’ first robust cold entrance of the winter this previous weekend, natural gas manufacturing within the state’s prime energy-producing area dropped by about 25%, based on a report from S&P Global. And whereas the lights largely stayed on throughout the state, the gas system’s efficiency throughout a short cold snap raised extra questions in regards to the grid’s skill to deal with excessive winter climate.

A separate Bloomberg report mentioned gas manufacturing within the Permian Basin area of West Texas plunged to its lowest ranges since final February’s lethal winter storm.

Quite a lot of natural gas corporations reported to the Texas Commission on Environmental Quality that they needed to unexpectedly flare off gas final weekend as a result of their gear froze.

Meanwhile, the Railroad Commission, which regulates the oil and gas business, mentioned it didn’t know something in regards to the sudden drop in gas manufacturing. An company spokesperson mentioned the fee is “currently evaluating available data on natural gas production during the weekend of Jan. 1 and 2.”

Natural gas fuels a majority of energy era in Texas, and a few energy turbines reported disruptions to their gas provide — however they mentioned it was not sufficient to affect turbines’ skill to provide electricity. Gov. Greg Abbott said the state’s principal energy grid operator was ready with additional energy provide on-line.

The Electric Reliability Council of Texas, the grid operator, mentioned there have been no important energy outages across the state.

But the disruptions to the natural gas provide throughout a typical Texas cold entrance calls into query whether or not the state’s gas corporations are prepared for excessive winter climate, a priority power specialists and energy firm executives have expressed in latest months after lawmakers didn’t require gas corporations to instantly put together their gear for excessive cold.

“I think it means the gas system’s not ready for another cold snap,” mentioned Michael Webber, an power assets professor on the University of Texas at Austin. “It wasn’t even really cold. It was cold, but nothing close to Winter Storm Uri [in February].”

Temperatures dropped into the higher teenagers through the weekend in Midland and remained under freezing there for about 12 hours.

Power crops are regulated by ERCOT and the Public Utility Commission of Texas, which oversees ERCOT, and function by completely different guidelines that the PUC carried out final fall requiring energy crops to repair “acute” points from final February’s catastrophe. The guidelines had been primarily based on suggestions that had been made — however by no means acted upon — a decade in the past by specialists and federal regulators after a 2011 storm precipitated widespread rolling energy outages.

The gas business has argued that their services will function so long as their energy just isn’t reduce off — which is what occurred throughout final February’s storm when widespread freezing temperatures and skyrocketing demand elevated pressure on the grid. Utilities had been ordered by ERCOT to preemptively reduce energy to properties and companies to keep away from a complete collapse.

But that, in some circumstances, shut off the gasoline provide for energy crops as a consequence of paperwork errors.

The Railroad Commission not too long ago finalized a brand new rule that can guarantee gas producers seemingly received’t get their electricity reduce off throughout a future “energy emergency” comparable to a winter storm. But the company has not but crafted weatherization guidelines for the business.

“Keeping the power on is the best winterization tool we have,” Todd Staples, president of the Texas Oil and Gas Association, mentioned in December.

Staples and oil and gas producers mentioned they didn’t make important upgrades to the best way they put together their infrastructure for the cold — a course of referred to as weatherization — after final February’s storm. They mentioned they’ve been getting ready their websites for cold climate for years.

But this weekend, no less than seven gas corporations mentioned their gear froze despite the fact that their energy remained on, and because of this they needed to vent or flare gas. They are required to inform regulators after they emit extra carbon emissions than their permitted quantity.

“Venting of inlet gas is occurring at Saxon Booster Station due to frozen lines causing the shut down of the compressor,” WTG South Permian Midstream LLC reported to the Texas Commission on Environmental Quality.

“During a freezing event, the drain line from the VRU’s froze and caused gas to be vented,” learn one other submitting to the TCEQ by Pioneer Natural Resources, a prime power firm working within the Permian Basin, referring to vapor restoration models.

The Bloomberg report mentioned 1 billion cubic ft of gas was burned or wasted as a consequence of weather-related shutdowns over the weekend.

Staples mentioned this week that when the climate fluctuates there could be some modifications in manufacturing.

“As we have consistently stated, some variation in production occurs with sudden temperature changes – these are field operations, not controlled factory settings,” Staples mentioned in a written assertion. “Typical fluctuations are expected and all reports we have seen seem to be within expected operating ranges when looking at the largest gas producing state in the nation.”

But energy turbines had been fast to criticize the natural gas business for the drop in manufacturing.

“@TXOGA claim that they produce as long as power is on isn’t all true,” the Texas Competitive Power Association said on Twitter in response to the S&P report. “Gas needs commensurate winterization requirements to those required of generators.”

Disclosure: The University of Texas at Austin has been a monetary supporter of The Texas Tribune, a nonprofit, nonpartisan information group that’s funded partly by donations from members, foundations and company sponsors. Financial supporters play no position within the Tribune’s journalism. Find a whole checklist of them right here.