NatGas Prices Plunge 99% In Oklahoma
The Oneok natgas network connects Great Plains gas fields and major metro areas in the Midwest and East. The natgas network is massive, spans about 2,400 miles of pipe, connecting 130 natgas fields, six storage centers, and a dozen interstate systems.
Last week, as the polar vortex poured Arctic air into the central US and down into the Gulf of Mexico, Oneok’s network experienced a catastrophic meltdown as frigid temperatures caused equipment failures.
As natgas wellheads froze and supply halted, Oneok OGT nat gas spot exploded from $3.46 to $9 on Wednesday, $60.28 on Thursday, and an insane $377.13 on Friday, up 32,000% in a few days.
Next-day delivery at the Oneok Gas continued to erupt early this week. On Wednesday, spot prices at Oneok jumped to $1,250. This is one of those markets where having a limit-up circuit breaker could actually be helpful, even though there is nowhere near enough product to satisfy demand at any price hence the explosive move.
Winter blast in plains expected to last through next weekend. Supply is literally frozen. Midcontinent NG could hit GME^batshit levels https://t.co/pFvSgwovxz
— zerohedge (@zerohedge) February 12, 2021
Limit-down circuit breakers would have been good today on Thursday as Oneok NatGas Spot prices crashed down 99% to ‘norms’ around $4 as temperatures rose.
NatGat futures (Henry Hub) prices also tumbled, erasing the spike from earlier this week as more supply came online and weather conditions improved.
Earlier today, we showed the worst is likely over as warmer temperatures could be seen by the weekend.
Texas’s power grid operator ERCOT posted grid data that showed electricity demand above 50 gigawatts, signing that fewer blackouts would be seen today.
With the power grid stabilizing, more customers see their power restored. PowerOutages.US (as of 14:01 ET) showed around 447k customers without power in the state.
Thu, 02/18/2021 – 18:20