Winter Storm vs Energy
On Monday, about 150 million Americans faced a winter storm warning. States braced themselves as inches of snow and ice came barreling down through brutal wind speeds and below-freezing temperatures. According to poweroutage.us, more than 15 states are struggling with blackouts due to the wild weather.
More than 3 million people are without power in Texas — the state rarely faces extreme winters, so it was caught off guard. For Texans, snowfall and extreme weather of this magnitude are as rare as a four-leaf clover. It’s so cold and snowy that parts of West Texas were colder than in Anchorage, Alaska. People are even taking to the streets to ski and snowboard!
So, why are there so many people without power in Texas? Well, there has been an unprecedented demand for energy due to the extreme cold. People need power to generate heat in their homes, but sadly, millions are without heat as they post pictures of icicles forming on the ceilings of their homes.
Companies that generate energy have cut production and shut down due to the lack of power and to add insult to injury, the technology responsible for generating energy has frozen. In Texas, oil refineries have shut down due to the lack of electricity, and they have cut back on production to save energy.
The closure of these energy companies and the lack of power in Texas is sure to have economic consequences. According to a CNBC report, the storm is expected to send gasoline prices higher across the country by roughly $0.10 per gallon in the coming days.
If you’re listening from Texas or anywhere in America facing this arctic weather, stay warm and stay safe!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
