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Oil Production Losses After Ice Storm

Midland, TX (Big 2 News) - Documents detail the impact of oil production during the recent ice storm in the Permian Basin.
Midland, TX (Big 2 News) - Documents detail the impact of oil production during the recent ice storm in the Permian Basin.

"It's possible to continue production, we just don't have that equipment here 'cause we don't face those extreme temperatures," said Douglass Robison, president of Exl Petroleum LP.

According to Robison, the numbers may look dramatically low to the average person but, in reality, there's no huge effect.

"Over the past five years, maybe even over the past 10 years, we have reversed the decline of production in the Permian Basin whereas for the previous 20 years we had seen production decline, now we're seeing production start to grow back in the Permian Basin," Robison said.

With the increase in production growth, Robison says the Permian Basin has overcome minor shortages seen in the ice storm.

But he says oil companies still run into problems during the icy weather.

"Most of the problems we incur are derived from supple of electricity. When we have an electrical shortage in field, and that's when we have supply interruptions," said Robison.

Supply interruptions, that lead to a shortage in the supply of oil.

And if you're worried about a possible increase in gasoline prices in the next freeze, Robison says it's not a problem.

"Unless you see a fluctuation in the price of crude oil, you're really not gonna see much of a break in the price of gasoline. So, gasoline is tied more to the price of crude oil than it's tied to West Texas production for example," Robison said.


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