Texas approves plan to boost grid access for oil and gas drillers Reuters

By Georgina McCartney

HOUSTON (Reuters) – A Texas commission on Thursday unanimously approved the Permian Basin Reliability Plan, which is designed to expand the power grid infrastructure in the largest U.S. oil field to meet rapidly growing demand from the oil industry. oil and gas.

The Public Utility Commission of Texas (PUCT) ordered the Electric Reliability Council of Texas (ERCOT) to develop the plan last December, two months after ConocoPhillips (NYSE: ), ExxonMobil (NYSE: ), Pioneer Natural Resources (NYSE:.N), Diamondback (NASDAQ:), Chevron (NYSE: ) and Devon Energy (NYSE: ) submitted a report along with financial intelligence company S&P Global, warning the commission of a significant increase in electric load demand in the Permian Basin in the coming years.

CONTEXT

Electrifying oilfield operations can reduce emissions and eliminate pollution and noise associated with diesel-powered fracking rigs and equipment.

Texas’ power grid has been under significant strain, with the state home to some of the largest energy-consuming industries, including data centers, cryptocurrency mining and oil operations.

Rising population growth and sweltering heat have also increased stress on Texas’ vulnerable power grid, pushing demand to a record high last month.

About 29 percent of respondents to the most recent Dallas Fed Energy Survey said uncertainty about grid access is a major challenge to electrifying their operations.

Another quarter of those surveyed primarily cited grid infrastructure challenges as an obstacle to electrification.

BY NUMBERS

ERCOT, which operates most of the state’s electric grid for 27 million customers, estimates that electricity demand in the Permian Basin could grow to nearly 27 gigawatts by 2038, equal to nearly a third of current summer demand of the entire ERCOT system, according to ERCOT. .

ERCOT estimates that the transmission upgrades needed to meet the increase in demand could range from $12.95 billion to $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 taken swift action to direct ERCOT to develop a transportation infrastructure plan for the region.” PUCT Commissioner Lori Cobos said.