View this report as a PDF here
Keeping Power on Proves Best Winterization Tool
As crews in the field worked through expected challenges, keeping the power on enabled technicians to troubleshoot issues on this vast system and keep sufficient volumes of natural gas flowing.
NATURAL GAS PRODUCTION, TRANSPORTATION AND STORAGE
Texas natural gas production, processing, transmission and storage sectors continue durable performance due to industry efforts. According to S&P Global Platts, 30-day average for Texas Onshore production continues to be strong during February 2022 with daily production averaging 1.5 Bcf/d more or almost 7% more than 2021.
Source: Gas Daily Market Fundamentals, Feb. 4, 2022, S&P Platts Global
S&P Global Platts is estimating Texas Onshore production will decline by less than 2% from February 3rd to February 4th and remains within normal operational expectancy.
Typically, Texas consumption (residential, commercial, industrial, power generation, etc.) is approximately only 42% of the total Texas production.
With proper planning and production along with natural gas storage, ample opportunity to purchase product exists in the market. Any issues are likely a reflection of direct infrastructure or localized challenges.
TEXAS FIELD CONDITIONS
Nominations were lower today but have been matching interconnect flows. Pipelines are reporting good pressure and plenty of storage even with some production declines. Production has decreased slightly as expected but with the improvement of daytime temperatures that is expected to improve. Roads and access to sites continue to be an issue.
TEXAS POWER STATUS
ERCOT reports operations normal as of 2/4/22 8:30am. Anticipated peak demand was expected to occur at 8:00am.
Source: ERCOT 2/4/22 8:30am
Source: Office of the Governor Press Briefing 2/4/22
Power Outages: Power restoration continues as 10,000 lineman work on localized power outages caused by icing, with 2,000 more traveling from outside Texas to assist.
The PUC encourages Texans who experience a localized outage to contact their utility provider.
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
- Notice to operators to delay any maintenance that may interrupt service, as safety permits, scheduled for this week.
- RRC reports road conditions for industry to TXDOT and can be submitted here.
Read here how the Texas oil and natural gas industry prepares for winter weather events
WEATHER STATUS AND TRAVEL IMPACTS
- Governor Greg Abbott has issued a disaster declaration due to ice for the following counties in Texas: Bosque, Dallas, Delta, Denton, Ellis, Fannon, Grayson, Hopkins, Hunt, Johnson, Kaufman, Lamar, Navarro, Rains, Red River, Rockwall and Williamson.
- Winter storm precipitation ended for most Texans but lingering impacts such as icy roads, localized power outages, and dangerous wind chill will be felt into the weekend.
- Difficult travel continues as temperatures in many areas remain below freezing until Saturday afternoon.
- Winter storm warnings in Central and Eastern Texas remain through 10:00am Friday morning. Winter weather advisory in effect for Southeast Texas till noon.
Source: State of Texas, TDEM
- The State Disaster Declaration can be found here
- TXDOT: Always remember that you can check road closure information in real-time at www.drivetexas.org
- RRC reports road issues to TXDOT and can be submitted here
- TCEQ reports no down water or sewage plants due to the storm. Emergency Response – Texas Commission on Environmental Quality – www.tceq.texas.gov
- PUC Outage Reports. Storm Safety Resource Page (texas.gov)
- The ERCOT Dashboard can be accessed at https://www.ercot.com/gridmktinfo/dashboards
For more information on how the Texas oil and natural gas industry prepares for winter weather, visit www.txoga.org/winterready.
This TXOGA Situation Report is a service to TXOGA members and includes a summary of forecasts, estimates and updates of energy resources and current weather and conditions. Part of the service is to provide an estimated status of the natural gas sector using third party information. Users of the service should seek to verify the information included in this service prior to use. TXOGA does not warranty, expressly or impliedly, the information contained in the service. Information is subject to change based on third party information updates and revisions. Distribution after receipt by the intended recipient is strictly prohibited.