Cold Weather Cuts Permian Oil Output by 1 Million Barrels a Day
- Texas isn’t well prepared for unusual Arctic weather
- Supply loss expected to be short-lived as weather improves
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Permian oil production has plunged by as much as one million barrels a day as the coldest weather in 30 years brings havoc to a region that seldom faces frigid Arctic blasts.
Oil traders and company executives, speaking on condition of anonymity, lifted their estimate of supply losses in the region as the temperature in Midland, the capital of the Permian basin, dropped to -1 Fahrenheit (-18 Celsius), the lowest since 1989, according to the U.S. National Weather Service. Traders had previously estimated losses at several hundred thousands barrels per day.