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Texas historic winter storm to cost $90 billion in losses

Texas historic winter storm to cost $90 billion in losses

The United States has been through a lot recently. It struggled with the coronavirus pandemic and waged trade wars. Another unexpected blow to the country came from devastating winter weather. 

Enki Research data analyst Chuck Watson has estimated that this winter would cost Texas a fortune - approximately $90 billion. The state was completely unprepared for a ferocious winter storm. Given that Texas accounts for a lion’s share of US oil production, the damage of the natural hazard amounts to tens of billions of dollars. First of all, it is a knockout to the oil infrastructure. It will take Texas over $35 billion to repair the burst oil pipes. The state lost another $45 billion due to supply chain disruptions. Insurance companies will cover over $20 billion of damage. However, taking into account insurance payments, costs will still be enormous.

Meanwhile, insurance companies are also among the main victims of the recent cold snap in Texas. Due to the coldest temperatures in over 30 years, payouts to Texans could reach $18 billion, which is six times higher than the usual average annual rate.

According to experts from the US Federal Energy Regulatory Commission (FERC), 90% of damage could have been avoided with the help of preventive measures.


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