US drillers in the Permian Basin have already restored about 80% of crude output after the big freeze, although refiners find a return to normal more tricky. Impacts from the cold blast have also hit Asia, where plastic makers face surging prices for key feedstocks after American processors were shuttered, Report informs, citing angi.
According to the industry analysis company OilX, production in Texas's Permian Basin is now about 2.9 million barrels per day (b/d). Earlier, due to severe cold weather, production fell to 600,000-700,000 b/d. Typically, this region produces about 3.5 million b/d.
In particular, Occidental Petroleum has recovered 90% of its production volumes, and Marathon Oil is putting wells into operation.
Oil production in the United States due to abnormally cold weather fell by about 3.5 million b/d. Only in the Permian Basin of Texas — the largest oil field in America-production decreased by 65%. The cold weather in the United States forced a number of the country's largest oil refineries, particularly in Texas, to suspend work.
The sharp reduction in oil output, transportation, and processing in Texas provoked an oil rally, as a result of which the price of Brent oil reached $67 per barrel.