US southwest electrical grid operators struggle to cope with cold

Author: Adam Button | Category: News

US grid fails in cold spell

You never want power to go out in the middle of a cold snap. The US grid is failing at the worst possible time, with record cold weather gripping areas that aren't used to icy cold.

The problem appears to be a lack of natural gas, which is ironic given that the southwest US has been awash in it for years.

Gas operators are prioritizing deliveries to home heating and have cut back on supplies to gas-fired power plants, which have had to shut down. At the same time, the cold is closing in some gas production and pipelines, which need electricity.

The whole thing is a mess and will surely leave some voters fuming.

This is going to have some knock-on effects right through the energy industry but the only thing I think benefits in the medium/long-tmer is natural gas, where inventories will be tighter. Beyond that, it's a tough one to handicap.

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose