Lessons for the Middle East from the Texas power outage


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"The stars at night are big and bright," goes the opening line of Deep in the Heart of Texas, a country number widely considered to be the unofficial Texan state anthem. This week, the night sky shone brighter not just in Texas's rural heartland, but in its bustling cities, too. The Dallas skyline went dark on Monday in an effort to conserve power, as millions of Texans found themselves without electricity or heating amid the most brutal snowstorms their state has seen in three decades.

The rolling outages began on February 15, and have since affected around a third of Texas’s 10 million households, as well as nearly 5 million people in northern Mexico. The source is a combination of factors: the cold spell causing a sudden, huge spike in electricity demand, the failure of public agencies to predict it and the failure of energy infrastructure to cope.

Texas’s electricity grid is unique in continental US in that it is not connected to others outside the state – a legacy of an institutionalised suspicion of federal regulation. The state’s minimally regulated market only pays energy producers for what they sell, and not for what they keep in reserve for rainy (or snowy) days. There are no utility monopolies, and electricity retailers face high competition. All of this has brought benefits for Texans, including very cheap electricity prices and plenty of scope for entrepreneurial innovation (Texas produces a third of US wind power).

Millions of Texans are still without water and electricity, but the situation has been especially hard on the homeless. Getty
Millions of Texans are still without water and electricity, but the situation has been especially hard on the homeless. Getty

But while Texas’s energy market is well prepared for summer demand, there is little thought or expectation for the winter, given how rare cold spells have been historically. And the standalone grid has resulted in Texas being unable to import electricity to make up for the current shortfall.

The state’s grid operator, the perhaps unfortunately named Electricity Reliability Council of Texas (Ercot), was hardly more prescient than the private-sector players it is meant to help steer. The snowstorm was on its way down from Canada for a week, and even as the Texan governor, Greg Abbott, declared a state-wide disaster on February 12, Ercot’s predictions for the impact fell short. It has hardly helped public perceptions of Ercot’s mismanagement that the council’s chair and vice-chair do not live in Texas, but Michigan and California, respectively.

Mr Abbott’s own policies have been criticised, too. Whatever the merits of Texas’s free market, the government’s focus on rock-bottom prices for commercial entities have resulted in a failure to spend money winterising energy infrastructure. Transmission lines have frozen, generators are not geared up for winter, wind turbine blades are iced over and one of the state’s nuclear reactors has failed. Infrastructure for natural gas, which produces half of Texas’s electricity, has been hit badly, too, causing a cycle in which power cuts beget further declines in output.

The knock-on effects reach far. Texas produces 20 per cent of US natural gas exports, and is the country's largest oil producer. Both of those markets have seen global price surges this week. And around 1 million Texans could miss their Covid-19 vaccinations, as deliveries pause.

Texas is well prepared for summer energy demand, but there is little thought given to the winter

There are lessons in Texas for the electricity markets of other parts of the world used to warmer climes. Extreme weather events are becoming more common. Major snowstorms have hit much of the Middle East this month, too, putting a strain on poorly equipped infrastructure across Lebanon, Palestine, Syria and Jordan.

The development of sustainable energy must not be only about cleaner resources to avert climate catastrophe, but also about more resilient ones to mitigate the impact of the damage already done. The futurisation and resilience of critical infrastructure and preparing for an increasingly erratic climate has never been more important. Public officials must plan ahead, or else their constituents will find themselves once again powerless when the next storm inevitably comes.

Sreesanth's India bowling career

Tests 27, Wickets 87, Average 37.59, Best 5-40

ODIs 53, Wickets 75, Average 33.44, Best 6-55

T20Is 10, Wickets 7, Average 41.14, Best 2-12

Disability on screen

Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)

Rosewood and Transparent — heart issues

24: Legacy — PTSD;

Superstore and NCIS: New Orleans — wheelchair-bound

Taken and This Is Us — cancer

Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)

Grey’s Anatomy — prosthetic leg

Scorpion — obsessive compulsive disorder and anxiety

Switched at Birth — deafness

One Mississippi, Wentworth and Transparent — double mastectomy

Dragons — double amputee

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MATCH DETAILS

Juventus 2 (Bonucci 36, Ronaldo 90 6)

Genoa 1 (Kouame 40)

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less

'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap​​​​​​​
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal​​​​​​​
Rating: 3.5/5

What is tokenisation?

Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets. 

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

LA LIGA FIXTURES

Friday

Granada v Real Betis (9.30pm)

Valencia v Levante (midnight)

Saturday

Espanyol v Alaves (4pm)

Celta Vigo v Villarreal (7pm)

Leganes v Real Valladolid (9.30pm)

Mallorca v Barcelona (midnight)

Sunday

Atletic Bilbao v Atletico Madrid (4pm)

Real Madrid v Eibar (9.30pm)

Real Sociedad v Osasuna (midnight)

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Company profile

Date started: January, 2014

Founders: Mike Dawson, Varuna Singh, and Benita Rowe

Based: Dubai

Sector: Education technology

Size: Five employees

Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.

Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)

Famous left-handers

- Marie Curie

- Jimi Hendrix

- Leonardo Di Vinci

- David Bowie

- Paul McCartney

- Albert Einstein

- Jack the Ripper

- Barack Obama

- Helen Keller

- Joan of Arc

First Person
Richard Flanagan
Chatto & Windus 

UAE currency: the story behind the money in your pockets
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Iron Man
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Spider-Man
Agility reduces risk of falls
Increased risk of obesity and mental health issues

Black Panther
Vegetarian diet reduces obesity
Unknown risks of potion drinking

Black Widow
Childhood traumas increase risk of mental illnesses

Thor
He's a god