Freezing Cold Means Much Lower American Oil Production

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Oil production in the United States has fallen by about a third due to severe freezing temperatures, which are large gripping parts of the country and causing power outages and other disruptions.

 

Oil pipelines and drilling rigs have also frozen.

Experts say that about 3.5 million barrels of oil per day have been shut down in the US in recent days. Typically about 11 million barrels of oil are pumped in the US every day. This includes production in Texas, the most important US state for oil.

Large companies such as ExxonMobil, Chevron and Shell have closed several oil refineries in Texas because the freezing cold creates problems and unsafe situations.

Production in the large oil and gas-rich Permian Basin region in the south of the US is also being hit hard. There, production has plummeted by almost two thirds.

Due to the freezing cold, the demand for electricity and gas in the US has increased dramatically, and there are problems to meet the demand. As a result, American energy prices have risen sharply.

In addition to the oil sector, the American car industry is also affected by the harsh winter weather. Several major carmakers such as General Motors (GM), Ford and the Japanese Toyota have temporarily shut down factories because, for example, the power was out.

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