With roughly two-thirds of the United States under some form of winter weather alert, energy experts are warning that a surge in heating demand could deplete America’s natural gas reserves.
Why It Matters
The United States relies on natural gas as its primary residential heating fuel and as a major source of electric power, so an extreme cold blast can simultaneously push up demand and constrain supply, creating rapid drawdowns from storage that help balance the system. Analysts said the expected demand surge, combined with possible production declines from freeze-related disruptions, could produce one of the largest weekly declines in storage on record, if forecasts verify.
What To Know
Near-term U.S. natural gas futures jumped more than 70 percent this week, putting the market on track for its biggest weekly increase since 1990 and lifting prices to their highest level since 2022, according to data cited by financial outlets, CNN reported.
Forecasters warned that the storm poised to sweep the eastern two-thirds of the United States could lead to significant production disruptions as water freezes inside pipelines and associated infrastructure, a phenomenon known as freeze-offs that reduces gas flow.
Because natural gas accounts for roughly 40 percent of U.S. electricity generation, severe cold can raise gas burn in the power sector at the same time households increase heating, compounding storage draws during peak demand windows, per CNN. In parts of the South that rely more on electric heating, subfreezing temperatures can cause electricity demand to spike, increasing gas-fired generation needs and further pressuring available gas supplies and inventories, NBC News reported.
Aside from the impact on America’s natural gas reserves, the incoming winter storm is set to cripple much of the nation, with meteorologists stressing that long-duration power outages are among the most impactful events expected with the storm. When coupled with extremely cold temperatures, power outages could prevent people from accessing heat, exposing them to deadly temperatures.
AccuWeather senior meteorologist Tom Kines told Newsweek that in some areas, power outages could persist for up to a week. Freezing rain associated with the winter storm is expected to blanket the U.S. South in a sheet of ice. With below-average temperature prompting extreme cold warnings as far south as Texas, Kines warned that as long as temperatures remain below freezing, power outages could persist.
What People Are Saying
Natural Gas Analysis senior vice president of research and analysis Patrick Rau, in a CNN report: “If we see several days of production declines—combined with demand increases—that could really do a number on storage.”
The National Weather Service (NWS) office in Memphis, Tennessee: “Expect power outages that last more than a day and extensive tree damage due to the ice. Travel could be impossible.”
U.S. Department of Energy spokesperson Ben Dietderich, according to the CNN report: “Thanks to President Trump’s leadership, American natural gas production is at an all-time high and surpasses all other nations. The Trump administration continues to do everything possible to reverse the impacts of the Biden administration’s energy subtraction policies, which contributed to higher energy prices across the board.”
What Happens Next
The scale of any storage depletion will hinge on the storm’s duration, the severity of the freeze across key demand centers and the extent of production and pipeline constraints that emerge over the next several days.
Utilities and grid operators will monitor demand and system conditions. In the meantime, people in the path of the winter storm are advised to prepare before it arrives and have a plan in place should they lose power for an extended period.
