Energy Crisis in Texas Similar to Hurricane Katrina, Sankey Says
- Some observers haven’t realized true scale of the event
- ‘Biggest outage in the history of U.S. oil and gas’: Sankey
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The energy crisis affecting Texas is reminiscent of Hurricane Katrina and some don’t realize how bad it truly is, Sankey Research LLC’s lead analyst Paul Sankey said in an interview on Bloomberg Surveillance Wednesday morning.
Cold weather and snow that blanketed Texas caused oil production to plunge by one-third of its output, or about 3.5 million barrels, with production in the Permian Basin falling by as much as 65%, traders and industry executives told Bloomberg News on Tuesday. In late August 2005, Katrina shut some 1.4 million barrels a day of oil production, more than 90% of the oil normally pulled from the U.S. Gulf of Mexico.