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Last weekend, a major winter weather system characterized by extreme cold spread across much of the central United States, disrupting energy systems and causing serious health and safety issues, particularly in Texas. At the same time that the cold weather increased energy demand, it also affected energy supply, causing intense and widespread energy market disruptions. Notably, electricity deliveries have been disrupted in the parts of Texas served by the Electric Reliability Council of Texas (ERCOT) as a result of various issues related to plant operations.
Natural gas wells in the region have been affected by freezing temperatures that have disrupted production, and pipeline compressors have lost power, which have both reduced deliveries. Refineries in the area have halted production. These energy market disruptions may continue for the next several days, and it could take weeks for energy systems to resume normal operations. The U.S. Energy Information Administration (EIA) ha