(Bloomberg). Texas’s power grid as well the solar arrays, drillers and wind farm operators that provide it is up for a second challenge in less than one month. This comes amid sub-zero conditions. 

According to the National Weather Service, temperatures in large swathes of the state with the second largest U.S. population are expected to drop to below normal over the coming days. 

It will be two weeks before the second arctic blast, which left undetermined numbers of processing plants, gas wells and other vital equipment without power for ensuring a steady supply of electricity generators with fuel, that the freezing weather system arrives.

BloombergNEF data indicates that more than 10% Texas’s natural gas production was shut down during January’s chill. This happened in two days. This was the worst cut since the February 2021 catastrophe that left more than 200 dead and paralyzed Texas for a good part of a week.

“It is important to remember, however, as we have consistently stated, that some variation in production occurs with sudden temperature changes -– these are field operations, not controlled factory settings,” Todd Staples, president of the Texas Oil and Gas Association, said in an email.

Get Freeze off

Midland, Texas (the unofficial capital of the Permian basin oil and gas fields) is expected to see temperatures drop down to 18° Fahrenheit on Thursday. This would be 15 degrees lower than the average low that day. 

Because of the large volumes of subterranean fluid that often flow from the ground with the fuel, gas wells can be particularly vulnerable to freeze offs. Extreme cold and overcast weather can cause the wind installation to stop functioning. 

“If we experience another severe winter storm before operators have weatherized their equipment, the grid could be at risk again,” said Virginia Palacios, executive director of watchdog group Commission Shift. 

Crude Ripples

The impending chill may also roil oil markets depending on the extent of freeze offs in the Permian, North America’s largest crude field. Supply disruptions can cause dislocations in the regional oil price before they reach the wider oil-futures markets. 

During this month’s earlier cold snap, West Texas crude rallied to a two-week high as buyers scrambled for supplies. 

The Texas Railroad Commission, which oversees oil and gas production in the state, didn’t immediately respond to a request for comment.

(In sixth paragraph, adds Midland’s predicted low temperature.

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