AUSTIN, Texas — Amid this ongoing winter weather event, the Texas Oil & Gas Association (TXOGA) released its Feb. 3 situation report claiming the state has an "abundance of natural gas."
TXOGA reports that, according to S&P Global Platts, the 30-day average for Texas onshore production has continued strong during February with daily production averaging 1.5 Bcf/d more or almost 7% more than in 2021. S&P Global Platts is also estimating a Texas onshore production of 23.44 Bcf on Feb. 2 and predicting 22.21 on Feb. 3, an anticipated dip of about 5% and within normal operational expectancy.
In the South, including Texas, overall demand for both power generation and residential/commercial from Feb. 2 to Feb. 3 is expected to increase by around 13%.
"Texas anticipated onshore daily production of over 22 Bcf combined with over 17 Bcf/d of storage capacity withdrawal far exceeds total Texas demand," TXOGA said. "There is no gas shortage. Typically, Texas consumption (residential, commercial, industrial, power generation, etc.) is approximately only 42% of the total Texas production."
TXOGA said that with proper planning and production with the storage of natural gas, there is "ample opportunity" to purchase product in the market.
"Any issues are likely a reflection of direct infrastructure or localized challenges," TXOGA said.
TXOGA added that it does expect production to decline throughout the day.
"Factors include icy roads, some power loss, high winds, mechanical issues and freezing equipment that is being addressed by personnel in the field," the association said. "Pipelines are reporting good pressure and plenty of storage even with some production declines which are anticipated and unavoidable in inclement weather. Updates will be provided in tomorrow’s summary but production and storage yields more natural gas in Texas than is demanded. Some early reports of transportation problems and getting service trucks to sites due to icy road conditions could have impact if prolonged."
According to TXOGA, some field winterization efforts include ethanol injection, temperature activated pumps, steamer units, equipment shelters, and insulated critical lines and valves. Additional pre-storm and offsite measures are listed below:
- 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
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