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Feb 15 (Reuters) - A deep freeze across Texas over the weekend took a toll on the energy industry in the largest U.S. crude-producing state, shutting oil refineries and forcing restrictions from natural gas pipeline operators.
The cold snap prompted the state’s electric grid operator to impose rotating blackouts, while President Joe Biden declared an emergency on Monday, unlocking federal assistance to Texas.
Texas produces roughly 4.6 million barrels of oil a day and is home to some of the nation’s largest refineries, spread throughout the Gulf Coast. In Midland, heart of the U.S. Permian shale region, temperatures were in the single digits Fahrenheit.
Mexico's president asked consumers on Thursday to use less electricity in the evenings as a measure to help overcome shortages of natural gas from Texas, which is seeking to ban exports of the fuel during freezing weather.
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HOUSTON (Reuters) - The U.S. deep freeze will wreak havoc on oil and gas production for several days if not weeks, according to industry experts, as companies deal with frozen equipment and a lack of power to run operations.
FILE PHOTO: A pump jack operates in the Permian Basin oil and natural gas production area near Odessa, Texas, U.S., February 10, 2019. REUTERS/Nick Oxford/File Photo
Texas produces more oil and natural gas than any other U.S. state, and its operators, unlike those in North Dakota or Alaska, are not accustomed to dealing with frigid temperatures. Numerous refineries in Texas have also been shut, though weather events rarely knock substantial amounts of production offline in oil patches far from the Gulf coast.
A deep freeze continued to wreak havoc on the U.S. energy sector, bringing operations to a halt at the Houston Ship channel, while some of the biggest oil refineries remained offline in the nation's largest crude-producing state.
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NEW YORK (Reuters) - Plains All American Pipeline LP reported a 35% drop in adjusted earnings before tax in the fourth quarter as transportation volumes on its pipelines fell amid lower oil prices and reduced drilling activity in the United States.
Overall adjusted EBITDA in the fourth quarter fell by 35% to $559 million while adjusted EBITDA in the transportation segment declined by 15%.
Oil prices plunged in 2020 as the coronavirus pandemic crushed global oil demand, prompting producers around the world to curb output.
Now, as prices rebound, drilling activity is picking up but production is unlikely to recover to pre-pandemic levels as U.S. shale producers rein in spending and focus on reducing debt. [RIG/U]