By Keerthi Ramesh
A sweeping winter storm dubbed Fern hammered swaths of the United States this week, forcing energy producers to curtail crude oil and natural gas output and prompting grid operators to prepare for potential power shortages.
Frigid temperatures, heavy snow and ice have blanketed regions from the southern Rocky Mountains through New England, snarling travel and straining infrastructure as utilities and energy companies grapple with one of the coldest blasts of the season, according to forecasts from the National Weather Service.
The storm has already cut into U.S. energy production, with analysts estimating total crude output could fall by roughly 300,000 barrels per day as operators reduce activity in key shale basins. The Permian Basin, which typically accounts for about half of nationwide oil production, may see 200,000 barrels a day sidelined as sub-freezing conditions take hold.
In North Dakota, the third-largest oil-producing state, regulators reported shut-ins that have lowered output by 80,000 to 110,000 barrels per day, a notable portion of its production, as cold-weather challenges affect wells and equipment.
Natural gas production also is under pressure, with Energy Aspects analysts projecting up to 86 billion cubic feet of output could be lost over the next two weeks, including about 35 billion cubic feet from Appalachia, one of the country’s most prolific gas regions.
Power grids across large parts of the country are on heightened alert. U.S. Energy Secretary Chris Wright has urged grid operators to deploy backup power from sources such as data centers and industrial facilities to help avert outages. The U.S. Department of Energy estimates more than 35 gigawatts of unused backup generation capacity could be tapped if needed.
In portions of the Southwest Power Pool, where lines carry electricity from southern generators into colder northern states, real-time wholesale power prices have surged above $200 per megawatt-hour amid transmission congestion. In contrast, strong winds in parts of New Mexico and Oklahoma have produced so much electricity that prices briefly turned negative, forcing some wind farms to pay to deliver excess power.
READ: US airlines warn of delays, issue travel waivers amid winter storms (January 23, 2026)
Utilities including CenterPoint Energy and Duke Energy said they are mobilizing crews and systems to reduce the storm’s impact on customers. The PJM Interconnection, which serves tens of millions across the Mid-Atlantic and Midwest, warned it could set a new winter peak demand record later this week.
The winter weather is also shifting fuel market dynamics. Analysts expect gasoline demand to weaken as people stay off icy roads, but diesel prices have climbed, reflecting heavier use of the fuel for heating and power generation. U.S. ultra-low-sulfur diesel futures rose to their strongest levels since late last year.
With transport hubs such as key Colonial Pipeline delivery points shrouded in snow and ice, distributors warn that fuel logistics could be disrupted for days as the country continues to grapple with the chill.