Cold Snap Targets Texas, Midcon Production

Friday, December 02, 2011

Special supplement from BENTEK's Daily Supply & Demand Report:

Weather forecasters are eyeing a cold front moving into Texas and lower Midcontinent regions early next week with predictions for freezing temperatures, and the potential to curtail natural gas production in the Texas and Midcon producing areas. This storm also should prompt the first strong storage withdrawals of the season in Texas.

Texas onshore production is currently 2.0 Bcf/d higher than November 2010 with 1.9 Bcf/d of the growth coming from liquids-rich plays (Granite Wash, Permian, Barnett Combo and Eagle Ford), which are more susceptible to freeze-offs than dry plays. Production impacts could be greater as the winter progresses and midstream operators add nearly 1.0 Bcf/d of incremental processing capacity to serve liquids-rich plays this winter.

BENTEK's analysis of the last freeze-off event in Texas also showed freeze-offs starting at as high as 40 degrees Fahrenheit. This past February, an extended and widespread blast of extreme cold took about 4.0 Bcf/d of production offline in Texas. The event also affected power and processing infrastructure and helped draw down storage inventories.

To learn more, please contact your BENTEK sales representative or call BENTEK Sales at 1(888) 251-1264.