Freezing weather and snow storms across the U.S. could cause massive power outages over the next week and boost natural gas demand to its highest levels of the winter, according to energy analysts and reliability coordinators.The bump in demand comes as supplies of gas could drop due to the freezing of oil and gas wells and pipes, known in the energy industry as so-called "freeze-offs."Gas provides about 43% of the nation's power generation and heats about 45% of the country's homes, according to data from the U.S. Energy Information Administration (EIA). The jump in demand coupled with a drop in supply could drive up prices next week."Appalachia and Rockies production face freeze-off risks as temperatures drop into the single digits or below," analysts at energy consulting firm Gelber and Associates said in a note.The U.S. produces about 105 billion cubic feet per day (bcfd) of gas with about a third of that supply coming from the Appalachia region of Pennsylvania, West Virginia and Ohio, according to data from financial firm LSEG and the EIA.In past winters, freeze-offs have slashed gas output by massive amounts, including the loss of around 16.5 bcfd in January 2024, according to data from LSEG.Frigid temperatures in December 2022 cut supplies by 19.4 bcfd, and in February 2021 hit output by 20.4 bcfd, according to LSEG data.One billion cubic feet of gas is enough to supply about five million homes for a day.As heating demand picks up, LSEG projects total U.S. gas use, including exports, could reach 156.4 bcfd on Jan. 9. That compares with the nation's daily record of 168.4 bcfd hit on Jan. 16, 2024 during another brutal winter freeze.The combination of soaring demand and freeze-offs in January 2024 boosted spot gas prices at the U.S. Henry Hub benchmark <NG-W-HH-SNL> in Louisiana to over $13 per million British thermal units (mmBtu).Next-day prices at the Henry Hub were currently around $3.65 per mmBtu, the highest levels since January 2024.
