The crash in U.S. oil production is growing worse as the deep freeze in Texas continues, according to Bloomberg News.
Bloomberg reported that oil production has fallen by close to 40 percent. The report cited “unnamed traders and industry executives.”
Crude oil production is down by more than four million barrels a day, twice what was reported a day earlier. Prior to the cold crisis, the U.S. was producing around 11 million barrels a day.
The Permian Basin, America’s largest oil field, has been hard hit. Production in the area that straddles western Texas and New Mexico is down between 65 percent and 80 percent.
Oil and natural gas prices are up sharply again on Wednesday. Gasoline prices are up sharply and are expected to rise above the highest level seen last year despite lower than normal demand.
The production crash may also last longer than initially expected, Bloomberg reported.cold s