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Winter Storm Uri Causes Texas $200 Billion in Damages

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According to forecasts from state economists, the economic effect of Texas' weeklong freeze and power outages could surpass the damage caused by some of the most devastating hurricanes ever to strike the United States.

Winter storms shut down oil and gas production, food processing facilities, and manufacturing plants throughout most countries last week, stranding millions of people in the dark for days. Many homeowners are now struggling with burst pipes and other property damage due to the extreme cold and snow.

According to the Perryman Company, a Texas-based economic analysis firm, Winter Storm Uri could cost as much as $295 billion on the low end and as much as $195 billion on the high end. These estimates include lost profits and a long-term loss in economic activity due to the storm's closure of factories and companies.

"It could be a little worse than Harvey in the worst-case situation." In the best-case scenario, it'll be almost as bad as Hurricane Ike, according to Ray Perryman, president, and CEO of the Perryman Company.

Hurricane Harvey, which struck Houston in the summer of 2017, is tied for the most damaging storm in US history with Hurricane Katrina in 2005, causing $125 billion in damage in Texas and Louisiana. Hurricane Ike, which struck Texas and Louisiana nine years ago, was the second most devastating, generating $30 billion in damage.

Perryman cautioned that the figures were just estimates based on interviews with insurance firms and economic models. Nonetheless, they illustrate the storm's one-of-a-kind characteristics, which blanketed the entire state for several days.

"In most situations, we have a lot of damage in a small place." "It's all over the state here," he said.

All of Texas' 254 counties were under a winter storm warning over Valentine's Day weekend, which was a first. West Texas gas fields and wind turbines were frozen, coal plants were shut down, and oil refineries were idled due to the storm. Some factories and food-processing plants were forced to close due to fuel and power shortages, resulting in the lost activity that would not be replaced even if they were reopened.

The storm's effects on Texas' broad agriculture sector could last for several seasons, as crops froze as temperatures fell below zero for several days. Tons of vegetables were lost by produce farmers in South Texas' Rio Grande Valley, nicknamed the "salad bowl" of the state. According to the Texas Farm Bureau, the storm also wiped out about half of the state's citrus crop.

According to Juan Anciso, the lemon and lime groves in the Valley were "absolutely lost," a horticulturist with the Texas A&M AgriLife Extension Service. Grapefruit and orange trees were also seriously damaged.

Since trees take time to recover, the citrus damage would have long-term repercussions, according to Perryman. "Most crops are grown in the ground, and if one is lost, a new one is planted the following year." Citrus grows on trees, and it takes many years to replace crops that are lost for a year."

Though Texas has thawed, the storm's long-term effects may have economic consequences for years, he said. "Most companies are back up and running now," said Perryman. "However, the results of the storm are felt over a long time.

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