Texas is currently the world's leader in energy use but is far from a place where renewable energy is possible. The state is still dependent on fossil fuels such as oil and natural gas. Windmills and solar panel installations are not common. The state will need to support a large-scale transition towards renewable energy.
Natural gas
Texas's natural gas sector is important. In 2006, oil and natural gas industry employed 312,000 people and contributed 14.9% towards the state's gross national product. What will happen if natural gas prices keep climbing? What impact will this have on ratepayers? What can Texas do?
In Texas, natural gas production is concentrated in and around the Gulf of Mexico. Texas and Louisiana are home to nearly three percent of the world's total natural gas reserves. This state boasts the largest processing capability in the country. Texas' largest offshore natural gas field is Barnett Shale. It is located in the Bend Arch Fort Worth Basin.
It is expected that the new pipeline will carry enough gas to supply 1.5 millions homes each day in Texas and Europe. In Texas, this will help with the state's growing need for natural gas for air conditioning. However, the state's grid reaches peak demand on Monday, and the Public Utility Commission of Texas (ERCOT) has asked consumers to conserve energy.
Many oil and energy companies reside in the state. The state's regulatory agencies monitor how companies operate and ensure safety for the public and the environment. They regulate air emissions, flaring, and other activities. Operators can be denied permits to operate in Texas if they do not adhere to these rules.
Wind energy
Texas's energy mix includes wind energy. The state has more than 150 wind farms that produce over 30,000 MW electricity. This is a huge percentage of the state's energy usage, and represents a huge source of clean energy. Texas is investing heavily into wind energy development.
The growth of wind energy in Texas is bringing benefits to the state in both cost and environmental terms. But, grid reliability is being challenged by this growth. Policymakers should address these concerns before it becomes a crisis. Analysts suggest many solutions but none of them have been proven to work. It is possible to combine capacity markets and pure-free markets in order to find the most effective solution.
Both wind power and solar energy play a significant role in Texas' energy mix. Although solar energy is a smaller part of Texas' electricity mix, it is still growing rapidly. Texas produced approximately 4% last summer's electricity from solar energy. This number is expected grow to 7.2% next summer. Solar energy will be especially important during the summer, when wind speeds tend to be lower. The sun also beats down harder in the summer, making it more important to harness solar energy to help combat summer heatwaves.
Texas is a leader for wind power generation and wind power projects are rapidly becoming more popular. The state, which is the second-largest in America after Alaska, has many wind sites ready for development. Additionally, wind power projects offer the possibility to lower the cost of electricity than coal. The process of building a wind turbine farm in Texas is very simple.