More icy weather is expected this week in the Permian Basin of Texas, on the heels of freezes that snarled truck traffic, caused power outages and disrupted oil and gas work last week, the National Weather Service said on Wednesday. Parts of North Dakota, the top U.S. oil producing state after Texas, were also forecast to have snow or blizzards on Thursday, the NWS said, as blasts of arctic air moved across much of the country.
Apache Corp, a leading producer in the Permian, said on Wednesday it suffered a modest impact from the freezes last week, while Pioneer Natural Resources Co said on Tuesday severe winter weather had disrupted its production and drilling operations in the Permian. “We are still quantifying the production deferment volumes, but anticipate a modest impact in the first quarter,” Houston-based Apache said in an email.
Assessing the storm’s impact will take several weeks, Pioneer said. Energen Corp also said severe weather on Dec. 30 hampered its operations in the Permian by curtailing truck traffic and limiting access to drilling and production facilities. As a result, there will be some impact on its output, the Birmingham, Alabama company said in a statement.
Energy intelligence service Genscape said lost output last week in the Permian amounted to about 2.3 million barrels. The Permian produced some 1.82 million barrels per day in December, according to government data.