Texas is the current leader in energy usage, but the state still has a long way to go before it becomes a true renewable energy utopia. Texas still relies on oil and gas for its energy, so windmills are rare and solar panels not widely available. The state will need to support a large-scale transition towards renewable energy.
Natural gas
Texas's natural gas sector is important. The state's oil and gas industry contributed 14.9% of its gross state product in 2006 to 312,000 jobs. What will happen if natural gas prices keep climbing? What does that mean for ratepayers What can Texas do?
Texas is home to the largest natural gas reserves in the world, with most of it located around the Gulf of Mexico. Nearly 33% of the total world's natural gas reserves is located in Texas and Louisiana. It has the largest processing capacity in the country. Texas' largest natural gas field onshore is the Barnett Shale in the Bend Arch Fort Worth Basin.
The new pipeline is expected to carry enough gas to supply 1.5 million homes every day in Texas and Europe. This will assist Texas in meeting its growing demand for natural gases 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 gas companies have their headquarters in the state. The state's regulatory agencies monitor how companies operate and ensure safety for the public and the environment. Specifically, they regulate air emissions and flaring. If operators do not comply with these rules, they can lose their permits to operate in Texas.
Wind energy
Texas has wind energy as part of its overall energy mix. More than 150 windfarms are found in Texas and produce more than 30,000MW of electricity. This makes it a very important source of energy. The state's wind energy is growing at a rapid pace, and the government is investing heavily in wind energy development in Texas.
Texas' wind energy boom is bringing many benefits for the state, both in terms of cost and in terms of environmental impact. This growth poses challenges to grid reliability. This is why policymakers must address these issues now to prevent a crisis. Analysts have suggested many options, but no single solution has been found to work. One combination of pure market capacity and pure market freedom may be the most effective.
Both wind energy and solar energy are vital to Texas' energy mix. While solar energy represents a lower percentage of Texas' electricity generation, it is expanding at a rapid pace. Texas got about 4% its electricity from solar power last year. This number is expected to grow to 7.2% this summer. Summer is when winds are slower so solar energy will be particularly important. The sun also beats down harder in the summer, making it more important to harness solar energy to help combat summer heatwaves.
Texas is an industry leader in wind power generation. Texas, second after Alaska in terms of state size, is home to many outstanding wind sites. In addition, wind power projects have the potential to beat the cost of electricity produced by coal. Wind turbine farms are relatively simple to construct in Texas.