Gas production was on track to drop about 4.7 billion cubic feet per day (bcfd) in the last three daysdown to a preliminary seven-month low of 94.3 bcfd Thursday as frost blankets much of the country, causing wells to freeze in Texas, Oklahoma, North Dakota, Pennsylvania and elsewhere.
that would be the largest daily drop in production since the February 2021 frost, when winter storm Uri knocked out Texas’ gas supply and forced the state’s power grid operator to impose rolling power outages.
One billion cubic feet is enough gas to power about five million American homes for one day.
In Northern California, gas prices for Thursday at PG&E Citygate hit record $56 per million British thermal units (mmBtu), surpassing the all-time high of $53 recorded in December 2000, according to Refinitiv data.
Gas on the Southern California (SoCal) Border rose to $48 per mmBtu, its highest level since hitting a 22-month high of $50 last week. Prices in SoCal hit a record high of $136 during the February 2021 freeze.
This puts PG&E gas on track to hit an average of $9.21 per mmBtu by 2022, which would be its highest level since hitting an annual record of $8.62 in 2008, according to Refinitiv data going back. to the year 2000.
The SoCal Border, meanwhile, is heading for an average of $8.95 per mmBtu in 2022, which would surpass its current annual record of $6.29 in 2021.
Source: Ambito
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