A Caspian Pipeline Consortium terminal on the Black Sea resumed full loading capacity on Sunday following maintenance, while a winter storm in the U.S. disrupted crude and natural gas production and caused power price increases.
Caspian Pipeline Consortium Terminal Operations
The Caspian Pipeline Consortium (CPC) terminal on the Black Sea coast returned to full loading capacity on January 21, 2024, after completing maintenance work on one of its three mooring points.
The CPC is a major conduit for crude oil from Kazakhstan to global markets.Maintenance at the terminal periodically impacts export capacity. The resumption of full capacity indicates a return to normal operations following the scheduled work.
In november 2023, CPC faced disruptions due to storm damage, highlighting the vulnerability of the terminal to weather conditions and the importance of regular maintenance.
U.S. oil and Gas Production Disrupted by Winter Storm
Severe winter weather across the United States, beginning on Friday, January 19, 2024, led to a decline in crude and natural gas production and a spike in spot power prices. Reuters reported on January 22, 2024, that production losses reached approximately 250,000 barrels per day (bpd).
The storm impacted key oil-producing regions, including the Bakken formation, Oklahoma, and parts of Texas.Reduced production can contribute to price volatility in the energy markets.
JPMorgan analysts estimated the production losses at around 250,000 bpd, encompassing declines in the Bakken, Oklahoma, and Texas regions. This information was reported by Reuters on January 22, 2024, citing a note from the analysts.
Impact on Texas Oil Production
Texas, a leading oil-producing state, experienced declines in output due to the winter storm. The U.S. Energy Information Governance (EIA) provides data on Texas oil production, though specific figures for the January 2024 storm impact were not instantly available as of January 26, 2024. However, the EIA routinely reports on the impact of weather events on energy production in the state.
In February 2021, a similar winter storm caused widespread power outages and significant disruptions to oil and gas production in Texas, as detailed by the EIA. This event underscored the vulnerability of the state’s energy infrastructure to extreme weather.
