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Massive winter storm sweeps across US, high power outages & gas demand to pose frigid challenges for Iowa caucuses
Massive winter storm sweeps across eastern US, triggering power outages and record gas demand. It will add complexity to upcoming Iowa Caucuses.
A widespread winter storm, traversing the eastern half of the United States on Tuesday has resulted in power outages affecting approximately 811,000 homes and businesses across 12 states. With severe freeze over the upcoming weekend, the storm has particularly impacted New York and Pennsylvania. Both the states have reporting over 182,000 power outages, followed by New Jersey following with over 127,000 outages, as per data from PowerOutage.us.
US storm expected to hit Iowa Caucuses
As the winter storm continues to impact the U.S, the challenges extend beyond energy concerns. In Iowa, the upcoming caucuses on Jan. 15 face a record-breaking forecast with temperatures expected to drop below zero degrees Fahrenheit. The extreme weather has already disrupted candidates' schedules, leading to canceled events and logistical challenges. While optimism prevails among candidates that their supporters will brave the cold, the forecasted conditions may complicate voter turnout, setting the stage for a historically cold caucus night.
Gas Demand expected to surge
Financial firm LSEG predicts a record gas demand, used for heating nearly half the homes in the country, reaching 170.0 billion cubic feet per day on Jan. 15 and 173.7 billion cubic feet per day on Jan. 16. This surge in demand, potentially surpassing the previous daily record set in December 2022, raises concerns about the strain on energy resources. Despite the impending cold, spot power and gas prices have not shown significant reaction to the current storm. However, gas futures have surged approximately 30% over the past six days, reaching a two-month high at around $3.25 per million British thermal units.
Reflecting on the December 2022 storm, some energy companies, including the Tennessee Valley Authority and Duke, had to implement rotating outages to maintain electric reliability. Gas flows into pipelines were reduced due to freezing conditions of gas wells and equipment, causing heightened demand for gas for heating and power generation.
America's coldest winter since December 2022
The current scenario draws parallels to the February 2021 freeze in Texas and Central states, leaving millions without power, water, and heat for days. Similarly, a winter storm named Elliott in December 2022 had nearly caused the collapse of power and natural gas systems in parts of the eastern US.
The current storm spans the country east of the Mississippi River, moving towards the U.S. Northeast, setting the stage for what is expected to be the nation's coldest weather since December 2022.
