By Georgina McCartney
HOUSTON (Reuters) – A Texas committee on Thursday unanimously approved the Permian Basin Reliability Plan, designed to expand power grid infrastructure in the United States’ largest oil field to meet rapidly growing demand from the United States. oil and gas industry.
The Public Utility Commission of Texas (PUCT) commissioned the Electric Reliability Council of Texas (ERCOT) to prepare the plan last December, two months after ConocoPhillips (NYSE:), ExxonMobil (NYSE:), Natural resources pioneer (NYSE:.N), Diamondback (NASDAQ:), Chevron (NYSE:) and Devon Energy (NYSE:) has 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
Electrifying oilfield operations can reduce emissions and eliminate the pollution and noise associated with diesel-powered platforms and fracking equipment.
The power grid in Texas is under significant pressure, with the state being home to some of the most energy-intensive industries, including data centers, cryptocurrency mining and oilfield operations.
Rising population growth and sweltering heat have also increased pressure on Texas’ fragile power grid, sending demand to a record high last month.
About 29% of respondents who participated in the latest Dallas Fed Energy Survey said uncertainty about access to the electric grid was a major challenge in electrifying their operations.
Another quarter of respondents cited network infrastructure challenges as a barrier to electrification.
BY THE NUMBERS
ERCOT, which operates most of the state’s electric grid for 27 million customers, predicts that electricity demand in the Permian Basin could grow to nearly 27 gigawatts by 2038, equivalent to nearly a third of the entire country’s current summer demand ERCOT system, ERCOT said. .
ERCOT estimates that the transmission upgrades needed to meet rising demand could be between $12.95 billion and $15.32 billion.
IMPORTANT QUOTE
“Ensuring that 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 took swift action to direct ERCOT transmission infrastructure plan for the region,” PUCT Commissioner Lori Cobos said.
