Energy Storm in the US: Arctic Cold Threatens Oil Production in Major Basins

Extreme frosts that swept across the United States in late January 2026 triggered widespread well freezes and disruptions in pipeline infrastructure. The oil market quickly reacted to the risks of supply reduction, although significant global reserves are currently holding back a sharp rise in prices for global benchmarks. This was reported by Bloomberg, writes UNN.

DetailsThe most critical situation is observed in the Williston Basin (North Dakota), where oil production has already decreased by 7% due to an anomalous drop in temperature. Experts note that with the predicted further cooling, the resumption of well operations could take weeks.

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The key Permian Basin in Texas is also under threat: although the state has improved its preparedness after the catastrophic Uri storm in 2021, traders fear a loss of 2 to 3 million barrels per day if the frosts persist.

Market Analysis: Demand vs. SupplyDespite physical production disruptions, the market shows mixed dynamics. Analysis shows that investors are focused not only on the shortage of raw materials but also on the decline in demand from oil refineries (refineries), which are also reducing capacity due to the cold.

• Price gap: The discount on WTI Midland crude for the Cushing hub increased to 74 cents, indicating an excess of oil that refineries are unable to process under current conditions.

• Logistical risks: The storm affected the Centurion and Basin main pipelines. Any prolonged shutdown of these arteries threatens fuel shortages in regional US markets and could cause volatility on global platforms.

• Gas factor: Unlike oil, the natural gas market reacted with a sharp rise in prices (Henry Hub futures jumped 25% in a week) as heating demand reached record levels.

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Prospects for recovery and nuclear safety of the industryAccording to experts from TP ICAP Group Plc, the current disruption is “manageable” on a global scale, but it highlights the vulnerability of the American shale industry to climatic anomalies. While the Texas Railroad Commission reports a one-third increase in gas reserves, refinery operators such as Pemex Deer Park are operating in a state of heightened readiness to avoid delays in Houston’s logistics channels. Market stability in the coming days will depend on the speed of the cold front and the infrastructure’s ability to quickly restart. 

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