Useful Information About Texas Energy Market

Useful Information About Texas Energy Market

While Alaska is the largest in terms of land mass, Texas follows in the second place. So, by logic it is quite obvious that Texas would be a national leader when it comes to production and consumption of all things that are related to energy. It would also be pertinent to mention here that Texas has a large concentration of industrial population. Further the environmental condition being what it is, Texas accounts for almost one tenth of the average national consumption and this consumption is for cooling purposes. Most of energy production in Texas is done using crude oil and/or natural gas. But there is some good news. Texas is now taking rapid strides in producing new types and forms of non-hydroelectric energy too. Wind energy is becoming a big source of alternate energy. Wind turbines are playing a big role in giving a new direction to alternate sources of energy.

Energy produced in Texas can be classified differently. The next few lines show a brief description of the various energy products. It would be pertinent to mention here that not one product could be set aside to Houston, Texas alone. It is something that is applicable for the entire state of Texas.

It would be interesting to look at the various energy products emanating from Texas.


Texas is a very big producer of petroleum and it is the largest producer of this fuel. It also has the largest reserves of crude oil that has been found anywhere else. Almost a quarter of USA’s petroleum reserves (both domestic and foreign) are found in the State of Texas. The Texas Crude has a signature name called West Texas Intermediate (WTI) because of its location. WTI is a high grade crude oil and is known for its low-gravity and is a low sulfur crude oil. The largest use of WTI is for motor gasoline, once it is refined. WTI is used as the bench mark for fixing oil prices in the USA.

Natural Gas

Texas also has the distinction of having 33% of the top hundred gas producing fields in the USA. They are located either partially or completely in the border of Texas. The biggest and active gas fields are located in Forth Worth Basin Area. The larger fields are mostly located in the Northeastern part of the State near the East Texas Basin. With such large deposits, Texas has the largest reserves of Natural Gas in the entire United States.


When it comes to electricity, Texas Electricity rates will continue to rise unless Texas produces double this energy when compared to the next largest station in the country. Two-third of the electricity is generated by power producers who are independent. Around 50% of electricity is produced by gas operated plants. Around 33% of the remaining power is accounted for by coal-fired plants. The balance is generated by renewable sources of energy. Texas also has 6 fire plants that run on coal, 2 nuclear plants. The rest are made up of renewable sources of energy such as wind power or plants that are fired using natural gas.

Will Things Remains The Same

The Renewable Energy Mandate was adopted by Texas Public Utilities Commission in the year 1999. The mandate went through some changes in 2005. This stipulates that by 2015, 5880 megawatts (around 5% of the State’s power requirements) must be met by renewable sources. The mandate also stipulates that by 2025 not less than 100,000 megawatts should be accounted for from renewable sources. Not less than 500 megawatts must be generated from wind sources. It is firmly believed that this will go a long in helping the environment and bring in a change in the way people perceive and look at power needs.