Original title: natural gas prices plummeted 99%, US energy crisis alarm lifted?
According to Poweroutage.us 's data,As of noon Thursday, about 500000 homes and businesses in Texas were still without power, down from more than 3 million on Wednesday.Power plants that have been shut down because of the cold are gradually resuming operation, but about 40 gigawatts of generating units are still out of operation, enough to power 8 million homes if they operate properly, grid operators said.
The Texas government has intervened in the state's natural gas industry, banning gas producers from transporting gas for power generation and heating across states, which has also helped to speed up the state's natural gas supply to normal.
Greg Abbott, the governor of Texas, said at a media briefing on Wednesday that he had issued an order banning the sale of natural gas to power companies outside Texas until February 21, requiring gas producers to sell natural gas to power plants in the state.
In addition, the Texas lieutenant governor said the Texas Senate will begin an investigation into the disaster next week.
As the worst pressure on natural gas supply may have passed, according to tradersSpot natural gas prices in Oklahoma plunged 99% on Thursday.On Thursday, natural gas delivered by the Oneok Natural Gas Transportation Center in Oklahoma was $10 or less per million British thermal units on Thursday, down from $1250 the day before.
But the economic impact of the crisis is widespread and likely to persist.Us oil production has plummeted by a record 40 per cent, and shale oil fracturing in Permian basins has been interrupted.A number of oil companies claimed to have suffered force majeure, warning customers that they would not be able to meet the delivery conditions stipulated in the contract. These events are causing a reaction in the global crude oil market. Cheniere Energy Inc., America's largest exporter of liquefied natural gas, said it would temporarily reduce gas and electricity consumption to help the Texas power grid operate. Paul Sankey, oil analyst at Sankey Research, wrote in a report:
No large infrastructure in Texas was built to cope with frozen conditions. This is an energy crisis that few people in markets outside Texas and Oklahoma realize. "
In the face of the energy crisis, the Biden administration, which has been advocating heavy investment in infrastructure, saidIt will work with states and businesses to make infrastructure more resilient after winter storms lead to widespread power outages in Texas.Elizabeth Sherwood-Randall, Biden's homeland security adviser, briefed reporters on a conference call on Thursday, she said:
"Climate change is real and happening, and we are not fully prepared for it."
White House Press Secretary Jen Psaki said:
"the president's priority is to ensure that millions of people in the affected states receive the relief and assistance they need."
U.S. Treasury Secretary Yellen said ThursdayBiden plans to launch a massive infrastructure modernisation program later this year, which will require tax increases to cover some of the costs.
In an interview with CNBC, Ms Yellen said details of the infrastructure and clean energy package were still being worked out and would be the last part of a $1.9 trillion bailout package that was being passed by Congress.
This article is partly from Sina Finance, Jin Shi integrated report.