Rajan Wilcox
Texas has long been associated with oil and gas production, and it is the top crude oil- and natural gas-producing state in the US. In 2023, Texas accounted for 43% of the nation's crude oil production and 27% of its natural gas gross withdrawals. The state is also a leader in renewable energy sources, with wind power generating about 25% of its energy in 2022. In 2020, 46% of Texas's energy was generated by natural gas, and 18% by coal, meaning that fossil fuels accounted for 64% of the energy mix. However, the use of renewable energy in Texas is on the rise, and it is becoming an increasingly vital part of the state's economy.
| Characteristics | Values |
|---|---|
| Percentage of Texas's energy from fossil fuels | 80% (as of 2022) |
| Percentage of Texas's energy from renewable resources | 20% (as of 2022) |
| Texas's position in crude oil production | 43% of the nation's production in 2023; 41% in 2019 |
| Texas's rank in wind-powered electricity generation | 1st in the U.S. in 2023; 25% of Texas's energy in 2022 |
| Texas's rank in solar-powered electricity generation | Small-scale efforts |
| Texas's rank in natural gas production | 27% of the nation's gross withdrawals in 2023; 25% in 2019 |
| Number of nuclear power plants in Texas | 2 |
| Number of wind farms in Texas | Over 150 |
| Number of oil refineries in Texas | 34 (as of 2023); 30 (as of 2019) |
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What You'll Learn
Texas' fossil fuel energy production
Texas is a leader in both fossil fuel and renewable energy production. In 2023, Texas produced more electricity than any other state, accounting for 13% of the nation's total electricity net generation.
Texas is the top crude oil- and natural gas-producing state in the US. In 2023, Texas accounted for 43% of the nation's crude oil production and 27% of its natural gas gross withdrawals. The state has the most crude oil refineries and the most refining capacity in the US. Its 34 refineries can process nearly 6.3 million barrels of crude oil per calendar day, about one-third of the nation's total refining capacity. Texas also has one-fourth of the nation's operable crude oil refineries and about 30 of the nation's 100 largest natural gas fields.
Texas has long been known for its oil and gas production, with oil and gas forming the backbone of the state's economy. However, Texas is also becoming a renewable energy powerhouse. In 2023, Texas led the nation in wind-powered electricity generation, accounting for 28% of all US wind-sourced electricity. The state also has abundant solar energy potential and generation, and is among the leading states in solar energy.
At present, around 80% of the energy produced in Texas comes from fossil fuels, with the remaining 20% sourced from renewables. However, the use of renewable energy in Texas is on the rise. The state exceeded its 2025 goal of installing 10,000 megawatts of renewable electricity generating capacity in 2009, mostly due to its many wind farms. At the end of 2023, Texas had over 57,000 megawatts of utility-scale generating capacity fueled by renewables, and just over 60,000 megawatts of total renewable net summer generating capacity when small-scale solar was included.
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Oil and gas fields
Texas has long been associated with oil and gas production, with fossil fuels contributing to around 80% of the state's energy production. The state is the top producer of crude oil and natural gas in the US, with 34 refineries that can process nearly 6.3 million barrels of crude oil per day. Texas's Permian Basin is one of the most productive oil fields in the world, and the state produces over 40% of the nation's crude oil.
The East Texas Oil Field is a significant contributor to the state's oil production. Covering 140,000 acres across five counties, it is the second-largest oil field in the US outside Alaska and has produced over 5.42 billion barrels of oil to date. Columbus Marion Joiner, an Alabama native, successfully drilled for oil in the area in 1930, leading to the creation of the "Big Inch" pipeline during World War II. This pipeline was the largest in the world at the time and transported crude oil to refineries, playing a crucial role in the Allied war effort.
The East Texas Oil Field is part of the Mid-continent oil field, a vast region of petroleum deposits extending from Kansas to New Mexico to the Gulf of Mexico. The field's oil is high-gravity and low in sulfur, and the underlying geology includes the Eagle Ford Shale and the Austin Chalk formation, which creates a stratigraphic trap for the oil. The gas-rich Jurassic Haynesville Shale is also a target for exploration and production in the region.
While Texas has traditionally relied on fossil fuels, it is now becoming a leader in renewable energy as well. The state is experiencing a boom in wind and solar energy, which are becoming increasingly competitive with fossil fuels in terms of cost. The shift towards renewable energy sources is helping to reduce Texas's carbon emissions and improve the overall carbon intensity of its electricity grid.
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Coal plants
Texas has long been a leader in the energy industry, with fossil fuels and renewable sources generating electricity for the state. Texas's energy use is tied to its large population, hot climate, and extensive industrial sector. One important source of energy for the state is coal. Coal is one of the world's most widely used fuels, with a record high of 8.3 billion tonnes consumed in 2022. It is composed mostly of carbonized plant matter and is found in large quantities in Texas.
Texas is the nation's largest coal consumer, and almost all of the coal is used to fuel the state's power plants. Texas has about 9 billion tons of estimated recoverable coal reserves, almost 4% of the nation's total. The state is the second-largest producer of lignite, a type of coal with low heat content, after North Dakota. Lignite is used almost exclusively for power generation, usually at power plants near producing lignite mines. Substantial lignite deposits are found in a broad band in the Texas Gulf Coast region, from the Rio Grande to the Arkansas border.
In 2023, coal provided nearly 11% of the Electric Reliability Council of Texas's (ERCOT) electric-generating capacity. ERCOT oversees the state's electricity grid, which provides power to more than 26 million Texas customers, or about 90% of the state. The U.S. Energy Information Administration (EIA) lists 15 Texas coal-fired power plants as of September 2022, with a combined installed capacity of nearly 20,000 megawatts (MW) of electricity. However, coal as an energy-generating fuel source is becoming less economical due to the increasing costs associated with compliance with federal environmental regulations like the Clean Air Act.
Several coal-burning power plants in Texas have been shuttered in recent years, and more are slated for retirement or conversion to natural gas. For example, Xcel Energy announced plans to retire its coal-fired Tolk power plant in northwest Texas by 2028. CPS Energy also announced plans to retire the last two coal-burning units at the J.K. Spruce power plant in San Antonio by 2030. Additionally, the Coleto Creek Power Plant in Fannin is scheduled to close in 2027 due to costs associated with federal regulations on coal ash disposal and limits on toxic metal discharge.
Overall, Texas's coal-fired power plants are facing retirement and conversion due to environmental regulations and the increasing popularity of renewable energy sources. While coal continues to play a significant role in the state's energy mix, its contribution to Texas's electricity generation is expected to decline in the coming years.
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Renewable energy sources
Texas is the top energy producer and consumer in the US. The state has long been known for its oil and gas fields, with fossil fuels accounting for around 80% of its energy production. However, Texas is also a leader in renewable energy production, with 20% of its energy coming from renewable sources, and it is investing in modernizing its grid infrastructure.
Texas has been increasing its production of renewable energy from wind and solar sources. In 2023, Texas generated 31,739 GWh of solar energy, up from 446 GWh in 2014. This increase in solar power generation was so significant that the solar energy produced in 2023 alone was more than all in-state solar generation before 2021 combined. Texas has also been rapidly increasing its wind energy production, with wind power accounting for 26% of the state's energy production in 2021, and the state now producing 200% more wind energy than it did a decade ago.
The growth in renewable energy production has had a positive impact on the state's economy and environment. Renewable energy industries, particularly wind and solar, have created tens of thousands of jobs for Texans and brought economic benefits to rural communities. Additionally, because renewable energy sources do not emit greenhouse gases, Texas's renewable energy boom has helped to reduce the state's carbon emissions and the overall carbon intensity of its electricity grid.
The state's diverse geography makes it a leader in solar-generation potential, and wind energy is particularly advantageous in West Texas, where water is in high demand, as wind power does not use water for electricity production. Texas has also invested in battery storage technology, with 3.42 gigawatts of battery storage capacity installed as of 2023, making it second in the country in this regard.
While renewable energy sources are becoming increasingly important in Texas, the state still relies on fossil fuels, particularly oil and gas, for a significant portion of its energy production. Texas is the top crude oil- and natural gas-producing state in the nation, and these fossil fuel industries have been a cornerstone of the state's economy. However, the state is taking steps to further develop its renewable energy sector, with many renewable energy facilities planned and underway.
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Fossil fuel vs renewable energy
Texas is a leader in both fossil fuel and renewable energy sources. The state has long been associated with oil and gas production, with the industry underpinning its economic power. In 2019, Texas produced 41% of the nation's crude oil and 25% of its natural gas. Texas also has nearly a quarter of the US's proved dry natural gas reserves, with almost 30 of the country's 100 largest natural gas fields located in the state. The state's 34 refineries can process nearly 6.3 million barrels of crude oil per day, about one-third of the US's refining capacity.
However, Texas is also a leader in renewable energy, particularly wind power. In 2023, Texas led the nation in wind-powered electricity generation, accounting for 28% of all US wind-sourced electricity. The state has over 150 wind farms, and if it were a country, it would rank fifth in the world for installed wind capacity. Wind power generated about 23-25% of Texas's total energy in 2020-2022, while solar power accounted for 2-11% during the same period.
The shift towards renewable energy in Texas is driven by several factors. Firstly, renewable energy sources like wind and solar do not emit greenhouse gases, helping reduce the state's carbon intensity and overall contribution to US carbon emissions. Secondly, the cost of renewable energy is dropping rapidly, with wind and solar now competitive with, or even cheaper than, fossil fuels in some parts of Texas. This has led to a boom in renewable energy projects, which bring economic benefits to rural communities and create tens of thousands of jobs.
While Texas has made significant strides in renewable energy, fossil fuels still dominate the state's energy mix. In 2020-2022, natural gas-fired power plants generated 42.6-46% of Texas's energy, with coal-fired plants contributing a further 16.6-18%. However, the fuel mix is changing, with renewables proliferating and more transmission lines bringing electricity from remote wind and solar farms to urban centres. As coal-fired plants close, many are being converted to natural gas plants, and the state is also investing in modernizing its grid infrastructure to improve storage technology and resilience.
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Frequently asked questions
As of 2022, around 80% of Texas's energy comes from fossil fuels, with natural gas-fired power plants generating 42.6% of the state's energy and coal-fired power plants generating 16.6%.
The main fossil fuels used in Texas are coal, oil, and natural gas. Texas is the top producer of crude oil and natural gas in the US, accounting for 41% of the nation's crude oil production and 25% of its natural gas production in 2019.
Yes, Texas is increasingly adopting renewable energy sources. In 2022, wind power generated about 25% of Texas's energy, while solar, hydroelectric, and biomass sources provided most of the remainder. Texas is also a leader in wind and solar energy, with over 150 wind farms and 5.7 GW of energy storage capacity.
