U.S. NEWS

US winter storms could cause power outages, cut natgas supplies

  • Some 250 million people expected to see frigid temperatures
  • Oil and gas well freeze-offs could hit production
  • Total U.S. gas use, including exports, could hit 156.4 bcfd
Freezing weather and snow storms across the U.S. could cause massive power outages over the next week and boost natural gas demand to its highest levels of the winter, according to energy analysts and reliability coordinators.
The bump in demand comes as supplies of gas could drop due to the freezing of oil and gas wells and pipes, known in the energy industry as so-called “freeze-offs.”
Gas provides about 43% of the nation’s power generation and heats about 45% of the country’s homes, according to data from the U.S. Energy Information Administration (EIA). The jump in demand coupled with a drop in supply could drive up prices next week.
“Appalachia and Rockies production face freeze-off risks as temperatures drop into the single digits or below,” analysts at energy consulting firm Gelber and Associates said in a note.
The U.S. produces about 105 billion cubic feet per day (bcfd) of gas with about a third of that supply coming from the Appalachia region of Pennsylvania, West Virginia and Ohio, according to data from financial firm LSEG and the EIA.
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