As we head into September you may have noticed the slight drop in temperatures – which also means a drop in electricity demand.
But as one peak passes, another one looms just ahead: hurricane season.
Energy expert Matt Smith, lead oil analyst for the Americas at Kpler, shared the following with Texas Standard:
– The Electric Reliability Council of Texas gets a high grade on navigating the summer test of the electric grid amid record-high temperatures by putting a number of things into place to avoid rolling blackouts, including early calls for energy conservation and an increased use of renewables.
– Though it’s been a calm hurricane season so far, the season typically ramps up from here on out, with a statistically high likelihood of a named storm in the Atlantic on Sept. 10. There have only been three storms so far, but we shouldn’t get complacent, Smith said: “We know these things can turn on a dime. And so it’s going to ramp up pretty strongly from here. So be careful.”
– A hurricane making landfall in Texas would likely knock out some refineries, which would lower oil prices because it would cut that demand, but increase gasoline prices because of a lack of supply. And a hurricane would push down the U.S. price of natural gas by keeping more gas in the U.S. but spike prices across Europe and potentially Asia because they wouldn’t be receiving the U.S.’ liquified natural gas cargoes.