Katerina Swanson
Texas has long been associated with oil and gas production, with fossil fuels accounting for around 80% of the state's energy production. Texas is the top crude oil- and natural gas-producing state in the US, with the Permian Basin in West Texas being one of the most productive oil fields globally. The state's energy mix includes fossil fuels and renewable energy sources, with a growing focus on the latter. Texas is a leader in both energy production and consumption, and its ability to innovate in the energy sector is notable.
| Characteristics | Values |
|---|---|
| Percentage of energy from fossil fuels | 80% |
| Percentage of energy from renewable resources | 20% |
| Petroleum consumption | Highest in the US |
| Per capita petroleum use | Third in the US |
| Petroleum use by the industrial sector | More than three-fifths |
| Petroleum use by the transportation sector | More than one-third |
| Petroleum use by the commercial and residential sectors | About 1% |
| Petroleum products used for space heating | 3% of households |
| Fossil fuel energy sources | Coal, oil, natural gas |
| Renewable energy sources | Wind, solar, hydropower, biomass |
| Fossil fuel industry's share of GDP | Large |
| Oil and gas production | 40% of US crude oil |
| Oil and gas fields | Permian Basin |
| Natural gas consumption | Highest in the US |
| Natural gas use for electric power and industrial sectors | Highest in the US |
| Natural gas use for space heating | One-third of households |
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What You'll Learn
Texas' fossil fuel industry
Texas is a leader in fossil fuel production and consumption. The state is the top producer of crude oil and natural gas in the US, with the Permian Basin in West Texas being one of the most productive oil fields globally. Texas produces over 40% of the nation's crude oil, and in 2024, it accounted for 43% of the country's crude oil production and 28% of its natural gas gross withdrawals. The state also has the most petroleum refineries and the most significant refining capacity in the US.
Texas's industrial sector consumes more petroleum than any other state, and the state is one of the largest consumers of motor gasoline and distillate fuel oil, which includes diesel fuel. The transportation sector accounts for over one-third of the state's petroleum consumption. Texas is also the largest consumer of hydrocarbon gas liquids (HGLs), used in the petrochemical industry.
The electric power sector in Texas is a significant consumer of natural gas, and the state uses more natural gas for electric power and industrial purposes than any other state. In 2024, the electric power sector exceeded the industrial sector as the largest consumer of natural gas. Texas is also the nation's largest coal consumer, with almost all of it fuelling power plants.
Texas's fossil fuel industry has contributed to air pollution, greenhouse gas emissions, and water contamination. The state's reliance on oil and gas makes it a major contributor to US carbon emissions. However, Texas is also a leader in renewable energy sources like wind and solar, which are helping to reduce the carbon intensity of its electricity grid. The state is transitioning towards cleaner energy sources, showcasing its ability to innovate while maintaining its position as an energy leader.
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Texas' clean energy adoption
Texas is the top crude oil- and natural gas-producing state in the US. In 2024, Texas accounted for 43% of the nation's crude oil production and 28% of its natural gas gross withdrawals. Texas also has the most petroleum refineries and the most refining capacity in the nation. Despite this, Texas is also a leader in renewable energy.
Texas has long been associated with oil and gas production, but it is also becoming a powerhouse in renewable energy. This shift from fossil fuel dominance to renewable energy growth showcases Texas’ ability to innovate while maintaining its position as an energy leader. Texas produces over 40% of the US's crude oil, making it a central player in global energy markets. However, the state also has a significant amount of wind and solar energy capacity. In 2024, Texas led the nation in wind electricity generation, accounting for 28% of the US total.
The Renewable Portfolio Standard (RPS) was adopted in Texas in 1999. The RPS encourages Texas to take advantage of its abundant wind resource. In 2001, the Texas legislature enacted public building energy efficiency standards to help the state comply with federal Clean Air Act requirements. From 2001 to 2002, wind energy capacity grew quickly, reaching a total of 900 megawatts. In 2005, Texas passed the Texas Utilities Code to designate Competitive Renewable Energy Zones (CREZ). The CREZ policy allowed new transmission infrastructure to be built in wind-rich areas.
Texas is also making use of other renewable energy sources. Texas has some hydropower capacity, primarily from reservoirs and dams. Biomass energy, derived from organic materials like wood and agricultural waste, is another renewable resource used in the state. Texas also has four biodiesel plants that can produce about 174 million gallons of biodiesel each year. Additionally, a new refinery in Newton County will process one million tons of wood waste into 65 million gallons of transportation biofuels annually.
Texas has also taken steps to reduce its consumption of fossil fuels. The state has four fuel ethanol plants that can produce a total of 430 million gallons of ethanol annually. Texas has also implemented energy efficiency standards for public buildings and is exploring energy storage and grid infrastructure modernization to improve the reliability of renewable energy sources. The Clean Energy Fund of Texas aims to reduce greenhouse gases and address climate equity by financing energy efficiency, weatherization, and water conservation projects. The fund also provides cost-effective ways for people to finance the installation of solar power and storage upgrades.
Overall, Texas is making significant strides in adopting clean and renewable energy sources, while also maintaining its position as a leader in energy production and consumption.
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Fossil fuel's environmental impact
Texas is the top crude oil and natural gas-producing state in the US. In 2024, Texas accounted for 43% of the nation's crude oil production and 28% of its natural gas gross withdrawals. The state also has the most petroleum refineries and the most refining capacity in the nation. Texas leads the US in wind electricity generation, accounting for 28% of the total in 2024. Despite this, around 80% of the energy produced in Texas comes from fossil fuels, with the remainder sourced from renewables.
The environmental impact of fossil fuels is significant. Fossil fuel energy production contributes to air pollution, greenhouse gas emissions, and water contamination. In the US, fossil fuels are responsible for a large proportion of greenhouse gas emissions, with nearly 25% of emissions coming from fossil fuels extracted from public lands. The burning of fossil fuels releases carbon dioxide, a greenhouse gas that traps heat in the Earth's atmosphere and contributes to climate change. This, in turn, increases the likelihood and harmfulness of extreme weather events, such as wildfires, droughts, extreme temperatures, and flooding.
The extraction of fossil fuels can also be damaging to the environment. Underground mining involves using heavy machinery to burrow deep into the earth's surface, which is dangerous for miners and disruptive to wildlife habitats. Surface mining, or strip mining, is less risky for miners but causes even more damage to the environment as it tears away layers of soil and rock to access the coal deposits below. A newer method of extracting oil and gas is hydraulic fracturing or fracking, which involves injecting large amounts of water mixed with toxic chemicals into cracks in rock layers. Fracking produces contaminated wastewater, which can be disposed of by injecting it back into the ground, potentially contaminating groundwater supplies and causing earthquakes.
The refining and transportation of fossil fuels can also result in environmental harm. Oil and gas leaks can occur from pipelines, wells, and vehicle crashes, leading to water and soil pollution. The refining process pollutes the air, and refineries' wastewater can contaminate water sources. Additionally, the ships and trucks that transport fossil fuels contribute to greenhouse gas emissions.
The impact of fossil fuels extends beyond the environment, affecting human health and rights. Air pollution from fossil fuels can cause respiratory illnesses and other serious health issues, including asthma, cancer, heart disease, and premature death. Globally, fossil fuel pollution is responsible for one in five deaths. Burning fossil fuels also violates human rights, as it disproportionately affects marginalized communities and contributes to the destruction of homes and livelihoods, restricted access to clean water, and health issues related to extreme temperatures.
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Texas' energy economy
Texas has long been associated with fossil fuels, particularly oil and gas production, and is a major contributor to US carbon emissions. The state is the top producer of crude oil and natural gas in the US, accounting for around 40% of the nation's crude oil production and 25-28% of its natural gas production. Texas also has the most petroleum refineries, with 32-35 refineries, and the most refining capacity in the US.
The energy industry is a significant driver of the Texas economy, supporting thousands of jobs in various fields. In 2022, Texas employed almost one million energy workers statewide, accounting for 11.5% of all US energy jobs. The state is also a leader in energy consumption, using more electricity than some entire countries.
However, Texas is also a leader in renewable energy sources, such as wind, solar, hydropower, biomass, and biofuels. In 2024, Texas generated 28% of the nation's wind power and was among the leading states in solar energy potential and generation. Renewable energy industries, particularly wind and solar, employ tens of thousands of Texans and bring economic benefits to rural communities.
Texas's fuel mix has changed considerably over the past decade, with a growing proportion of energy coming from renewable sources. In 2022, natural gas-fired power plants generated 42.6% of the state's energy, while coal-fired power plants contributed 16.6%. Wind power generated about 25%, and solar, hydroelectric, and biomass sources provided most of the remainder.
Texas's energy economy depends on its ability to manage a constantly changing energy sector, and the state must continue to innovate to maintain its position as an energy leader.
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Fossil fuel energy sources
Texas is the top crude oil- and natural gas-producing state in the US. In 2024, Texas accounted for 43% of the nation's crude oil production and 28% of its natural gas gross withdrawals. The state has the most petroleum refineries and refining capacity in the country, with 35 refineries capable of processing about 6.3 million barrels of crude oil per day. Texas also leads the nation in natural gas consumption, accounting for about 16% of total US natural gas use. The electric power sector is the largest consumer of natural gas in Texas, followed by the industrial sector.
The transportation sector accounts for a significant portion of Texas's petroleum consumption, with the state being the largest consumer of motor gasoline and distillate fuel oil, which includes diesel fuel for highway use. Texas also has a unique position in the fuel market, as much of the state can sell conventional motor gasoline without ethanol. However, certain areas, such as Greater Houston and Dallas-Fort Worth, require reformulated motor gasoline blended with ethanol to meet clean air-quality requirements.
Texas's industrial sector is a major consumer of petroleum, particularly hydrocarbon gas liquids (HGLs), which are used as feedstocks in the petrochemical industry. The state is the nation's largest consumer of HGLs. Additionally, about 3% of Texas households use petroleum products, mainly propane, for space heating.
While Texas has a diverse energy portfolio, including renewable sources like wind, solar, biomass, and hydroelectric power, fossil fuels still dominate the state's energy landscape. However, the use of renewable energy is on the rise, and Texas is making strides towards clean energy adoption. The state's renewable energy boom has helped reduce the overall carbon intensity of its electricity grid, and renewable energy sources are becoming increasingly important to Texas's economy and environmental sustainability.
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Frequently asked questions
Yes, Texas uses fossil fuels. In fact, Texas is the top crude oil- and natural gas-producing state in the US.
Around 80% of the energy produced in Texas comes from fossil fuels, with the remaining 20% sourced from renewables.
Texas produces over 40% of the US's crude oil, and 28% of its natural gas. Texas also has the most petroleum refineries and refining capacity in the nation.
Texas is a leader in wind electricity generation, producing 28% of the country's wind power. Texas also has 16 biomass power plants, and is investing in biofuels.
