Regan Brown
Texas has long been associated with oil and gas production, and it is a leader in the energy economy. In 2020, Texas generated the majority of its energy using fossil fuels, and it is the nation's largest consumer of hydrocarbon gas liquids, motor gasoline, and distillate fuel oil. Texas is also the largest energy-consuming state and is the largest net supplier of energy to other states. The state's energy mix includes fossil fuels and renewable energy sources, with fossil fuels remaining the main source of power within the Texas electricity generation system.
| Characteristics | Values |
|---|---|
| Fossil fuel usage in Texas | Fossil fuels remain the main source of power within the Texas electricity generation system |
| Texas's ranking in energy production | Texas leads the nation in energy production, providing about one-fourth of the country's domestically produced primary energy |
| Texas's ranking in energy consumption | Texas is the largest energy-consuming state |
| Texas's ranking in petroleum consumption | Texas consumes more petroleum than any other state and ranks third by volume in per capita petroleum use |
| Texas's ranking in coal consumption | Texas is the nation's largest coal consumer |
| Percentage of energy produced in Texas that comes from fossil fuels | 80% |
| Percentage of energy produced in Texas that comes from renewable resources | 20% |
| Texas's ranking in crude oil production | Texas produces over 40% of the total U.S. crude oil |
| Texas's ranking in natural gas reserves | Texas contains almost a quarter of U.S. proved dry natural gas reserves |
| Texas's ranking in natural gas gross withdrawals | In 2023, Texas accounted for more than one-fourth of the nation's natural gas gross withdrawals |
| Texas's ranking in electricity generation | In 2023, Texas generated more electricity than any other state and more than twice as much as second-place Florida |
| Texas's ranking in electricity net generation | In 2023, Texas accounted for 13% of the nation's total electricity net generation |
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What You'll Learn
Texas's petroleum use
Texas is a leader in both fossil fuel production and renewable energy. The state's energy mix includes fossil fuels and renewable energy sources. Texas consumes more petroleum than any other state and ranks third by volume in per capita petroleum use, after Louisiana and Alaska. The industrial sector, where hydrocarbon gas liquids (HGLs) are used as feedstocks for the petrochemical industry, is the largest petroleum consumer, accounting for more than three-fifths of the state's petroleum use. Texas is also the largest consumer of motor gasoline, distillate fuel oil, and residual fuel oil. The transportation sector accounts for nearly two-fifths of the petroleum consumed in the state.
Texas is the largest energy-consuming state and is the largest net supplier of energy to other states. The state's refineries and petrochemical plants account for more than half of its energy consumption and 24% of the nation's total industrial sector energy use. Texas produces over 40% of the US's crude oil, making it a central player in global energy markets. The Permian Basin in West Texas is one of the most productive oil fields in the world.
Texas has a vast number of natural resources and relies on them to provide energy for its growing population. The state has abundant renewable energy resources and is first in the nation in wind-generated electricity. With many sunny days, Texas also has a high solar energy potential. Texas has three fuel ethanol plants that can produce a combined total of about 380 million gallons of ethanol annually. However, Texans consume four times more fuel ethanol than the state's plants can produce.
While Texas has long been known for its oil and gas production, it is also becoming a leader in renewable energy. The state is adding more solar generation to its grid, which will produce more energy during the summer months. However, solar power is limited as it does not produce energy at night. Texas will likely remain heavily reliant on fossil fuels for electricity in the near to medium term, despite efforts to transition to renewable energy sources.
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Coal consumption
Texas is the largest energy-consuming state in the US, accounting for about one-seventh of the nation's total energy use. It is also the largest net supplier of energy to other states. Texas's industrial sector, including refineries, petrochemical plants, and crude oil and natural gas extraction, is the state's largest energy consumer, accounting for more than half of the state's total energy consumption.
Texas is the nation's largest coal consumer, and almost all of the coal is used to fuel the state's power plants. Texas lignite accounts for three-tenths of the state's total coal consumption, with the rest of the state's needs met by coal brought from Wyoming by rail. Industrial facilities in the state also receive small amounts of coal from Colorado. Texas has 15 coal-fired power plants with a combined installed capacity of nearly 20,000 megawatts (MW) of electricity. The state is the second-largest lignite producer in the US, after North Dakota, and the seventh-largest coal producer overall.
While coal has traditionally been a major energy source in Texas, its prominence is declining. In 2019, a report found that all of the state's coal plants were leaking contaminants, including arsenic, boron, cobalt, and lithium, into groundwater at unsafe levels. As a result, nearly one-third of Texas's coal-fired power plants are scheduled to be retired by the end of the decade. The state's last large coal-fired power plant came online in 2013, and there are no plans for new coal-fired plants.
Texas is also a leader in renewable energy, with abundant resources for wind, solar, and geothermal power generation. The state is first in the nation in wind-generated electricity and among the leading states in solar energy potential and generation. As the cost of renewable energy continues to drop, Texas is transitioning towards cleaner energy sources, reducing its reliance on coal and other fossil fuels.
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Natural gas usage
Texas is a leader in the production and consumption of natural gas. In 2023, Texas accounted for more than a quarter of the nation's natural gas gross withdrawals, with about 30 of the nation's 100 largest natural gas fields located in the state. Texas's gross withdrawals of natural gas reached an all-time high of nearly 12.4 trillion cubic feet in 2022. This increase in production was largely attributed to advancements in horizontal drilling and hydraulic fracturing technologies in the Eagle Ford shale and Permian Basin formations.
Texas exports natural gas through an extensive network of pipelines stretching over 17,000 miles across the nation and into Mexico. Additionally, the state has two liquefied natural gas (LNG) terminals along the Texas Gulf Coast at Freeport and Corpus Christi, which began operations in 2019. These LNG export facilities contribute significantly to the United States' position as the world's largest LNG exporter. Texas also imports natural gas, with significant volumes entering the state from Oklahoma and New Mexico. However, the state exports more natural gas than it imports, resulting in excess natural gas being stored in underground facilities with a capacity of 860 billion cubic feet.
Natural gas is a crucial source of energy in Texas, providing 41.8% of the state's electric-generating capacity. It is the largest single source of power, with natural gas-fired power plants supplying more than half of the electricity generated in Texas. These power plants play a vital role in meeting peak electricity demands and ensuring grid reliability. The industrial sector, including refineries and petrochemical plants, is the largest energy consumer in Texas, accounting for more than half of the state's total energy consumption.
Natural gas is also used for space heating in Texas, with about one-third of Texas households relying on it as their primary fuel source for warmth. Furthermore, Texas uses a significant amount of natural gas in the production, processing, and distribution of natural gas itself, exceeding the combined consumption in the state's commercial and residential sectors. The state has numerous natural gas processing plants, with at least 176 identified, and continues to expand its natural gas-fired power plant infrastructure. For example, the recently approved 1,215 MW natural gas-fired power plant in Bridge City, Texas, is expected to bring substantial economic benefits and job opportunities to the region.
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Fossil fuels vs renewable energy
Texas is a leader in both fossil fuel and renewable energy production. The state's energy mix includes fossil fuels and renewable energy sources, with fossil fuels currently providing around 80% of the state's energy and renewables providing 20%. Texas is the largest energy-consuming state and is the largest net supplier of energy to other states. The industrial sector, including refineries and petrochemical plants, accounts for more than half of the state's energy consumption. Texas is the nation's largest consumer of hydrocarbon gas liquids (HGLs), motor gasoline, distillate fuel oil, and residual fuel oil. The transportation sector accounts for nearly two-fifths of the petroleum consumed in the state.
Texas has long been associated with oil and gas production, with the Permian Basin in West Texas being one of the most productive oil fields globally. The state produces over 40% of the US's crude oil, and Texas's crude oil and natural gas fields cover much of its land area. Texas is also the nation's largest coal consumer, with almost all of it used to fuel power plants. In 2022, 42.6% of Texas's energy was generated by natural gas-fired power plants, and 16.6% by coal-fired power plants.
However, Texas is also a leader in renewable energy. It is first in the nation for wind-generated electricity and has significant solar energy potential and generation. Texas also has geothermal resources suitable for power generation and has been mining uranium for nuclear reactors since 1961. The cost of renewable energy is dropping, and wind and solar are now competitive with, or even cheaper than, fossil fuels in some parts of Texas. Renewable energy is creating tens of thousands of jobs and bringing economic benefits to rural communities.
Despite the growth of renewable energy, Texas still relies heavily on fossil fuels. Power firms in the state are likely to remain reliant on fossil fuels for electricity in the near to medium term, and higher temperatures are increasing the use of air conditioners, which is straining the power system and leading to even greater quantities of fossil fuel use. Texas wind power output tends to be lower in the summer due to lower wind speeds, and while solar generation is increasing, it does not produce electricity at night. As a result, Texas continues to rely on its coal and natural gas generators.
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Electricity generation
Texas is the nation's largest natural gas consumer, accounting for about 15% of the country's total natural gas use. The state's industrial sector typically accounts for between one-fifth and one-fourth of the nation's total industrial sector natural gas consumption. The amount of natural gas used for electricity generation in Texas exceeds that of any other state and accounts for about one-seventh of the U.S. electric power sector's total. In 2023, the industrial sector accounted for 46% of the natural gas delivered to Texas consumers, while the electric power sector made up 45%.
Texas is also the nation's largest coal consumer, with almost all of the coal used to fuel the state's power plants. In 2023, natural gas-fired power plants supplied more than half of the electricity generated in Texas. Natural gas fuels more electricity generation in Texas than in any other state and accounts for 15% of the nation's total.
Texas is a leader in alternative energy sources, producing the most wind power of any state. Wind power accounted for at least 15.7% of the electricity generated in Texas during 2017, according to the Electric Reliability Council of Texas (ERCOT). Texas has over 150 wind farms, with a total nameplate capacity of over 30,000 MW as of 2020. In 2023, Texas led the nation in wind-powered electricity generation, accounting for 28% of all U.S. wind-sourced electricity.
Texas is also making significant strides in solar power. In 2023, it was the country's second-largest producer of solar power, after California. Solar energy accounted for about 6% of the state's total electricity generation that year. Small-scale, customer-sited solar facilities provided about one-seventh of the solar total. Power plant developers are planning to add almost 24,000 megawatts of utility-scale solar generating capacity in the state during 2024 and 2025.
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Frequently asked questions
Fossil fuels remain the main source of power within the Texas electricity generation system. In 2020, Texas generated the vast majority of its energy using fossil fuels. In 2023, Texas accounted for more than one-fourth of the nation's natural gas gross withdrawals.
Texas uses coal, oil, and natural gas.
Texas is the nation's largest coal consumer and the largest energy-consuming state. Texas consumes more petroleum than any other state and is the largest consumer of motor gasoline, distillate fuel oil, and residual fuel oil.
Around 80% of the energy produced in Texas comes from fossil fuels, with 20% coming from renewable resources.
