A Texas commission on Thursday unanimously approved the Permian Basin Reliability Plan, designed to expand power grid infrastructure in the largest oil field in the United States to meet rapidly growing demand from the oil and gas industry. of the gas.
The Public Utility Commission of Texas (PUCT) tasked the Electric Reliability Council of Texas (ERCOT) with compiling the plan in December last year, two months after ConocoPhillips, ExxonMobil, Pioneer Natural Resources (PXD.N), Diamondback, Chevron and Devon Energy had filed a report with financial information firm S&P Global, warning the commission of a significant increase in electric load demand in the Permian Basin in the coming years.
CONTEXT
Electrification of oilfield operations can reduce emissions and eliminate pollution and noise associated with diesel-powered fracking platforms and equipment.
Texas’ power grid has been under strain as the state is home to some of the most energy-intensive industries, including data centers, cryptocurrency mining and oil field operations.
The growing population and scorching heat have also increased stress on Texas’ vulnerable power grid, pushing demand to a record high last month.
About 29% of respondents to the Dallas Fed’s latest energy survey said uncertainty about grid access is the top challenge to electrifying their businesses.
Another quarter of respondents primarily cited grid infrastructure challenges as a barrier to electrification.
IN NUMBERS
ERCOT, which manages most of the state’s electric grid for 27 million customers, projects that electricity demand in the Permian Basin could grow to nearly 27 gigawatts by 2038, equivalent to nearly a third of the country’s current summer demand. entire ERCOT system, according to ERCOT.
ERCOT estimates that transmission upgrades needed to meet the increased demand could be between $12.95 and $15.32 billion.
KEY QUOTE
“Ensuring the Permian Basin has the reliable electricity it needs to power Texas’ world-leading oil and gas industry is a top priority for the Commission, and we have acted quickly to direct ERCOT to develop a transmission infrastructure plan for the region,” said PUCT Commissioner Lori Cobos.
