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OIL AND GAS
Winter storms sock U.S. oil states
by Daniel J. Graeber
Austin, Texas (UPI) Dec 29, 2015


disclaimer: image is for illustration purposes only

Snow- and ice-covered roads are making for hazardous conditions in parts of the U.S. with high levels of oil production, travel advisories show.

A major winter storm system left major damage in a wake stretching from southern Texas to Great Lakes states. Colder temperatures and lingering moisture are creating travel headaches in areas impacted by severe weather.

"All of Midland County has been under ice and snow," a warning from the Texas Department of Transportation read. "Use extreme caution."

Texas is the No. 1 oil producer in the nation. While a depressed energy economy has resulted in lower crude oil production, much of the industry relies on road and rail networks for delivery as output is greater than some pipeline infrastructure can handle.

Texas Gov. Greg Abbot declared a state of emergency during the weekend after heavy snows and severe weather passed through his state. In Oklahoma, the state immediately north of Texas, Gov. Mary Fallin extended a state of emergency over all 77 counties because of the winter storm.

Nearly 200,000 homes lost power Monday afternoon and heavy rains have flooded many eastern counties in Oklahoma.

Shale basins in Oklahoma, the No. 7 oil producer in the nation, are on par with the Eagle Ford basin in Texas and the Bakken shale in North Dakota, with production expected to pass 1 million barrels of oil equivalent per day by 2020.

Oklahoma also plays host to the central U.S. crude oil storage facility in Cushing. As of Dec. 18, the storage facility at Cushing held about 62 million barrels of oil.

Temperatures in the region should rise into the mid 40s Fahrenheit. The Texas Department of Transportation warns overnight lows, however, could cause slick conditions at least through the weekend.


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