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Winter Storm Halts US Oil Production
27 Jan
Summary
- Up to 2 million barrels of oil output were lost due to a winter storm.
- Power outages affected approximately 810,000 customers across the nation.
- Refineries and gas plants reported issues amidst freezing weather conditions.
A severe winter storm swept across the United States over the weekend, causing significant disruptions to the nation's energy sector and power grids. Analysts estimate that up to 2 million barrels per day, approximately 15% of national oil production, were lost due to the extreme weather. Production losses peaked on Saturday, with the Permian Basin experiencing the largest decline. As of Monday, January 27, 2026, production losses had eased, and full restoration was anticipated by January 30.
ConocoPhillips reported a reduction of 175,000 barrels per day in its Permian crude production. North Dakota's oil output also saw a decline of an estimated 80,000 to 110,000 barrels per day. Associated natural gas production in North Dakota was also impacted.
The power sector faced considerable strain, with around 810,000 customers still without electricity on Monday. The storm had previously knocked out power to over a million homes and businesses. The largest U.S. power grid, PJM, anticipated significant generation outages, affecting its committed capacity. Wholesale electricity prices saw substantial spikes over the weekend, with some regions experiencing dramatic increases.
