
The Lone Star state leads the U.S. in energy production, providing nearly one-fourth of the country's domestically produced energy. Texas is the second largest U.S. state in total land area, trailing only Alaska, and it is blessed with an abundance of resources from oil, gas and coal.
The Eagle Ford Shale and Permian Basin are the state’s most recent poster children for the energy sector.
But, as the world adds more low carbon energy sources to limit the damaging impacts of climate change, Texas will also play a leading role.
According to the Energy Information Administration, Texas leads the U.S. in wind-generated electricity, and is among the leading states in solar energy potential and generation. Texas also has geothermal resources, uranium, rare earth elements and other critical minerals.
And Breakthrough Energy and TerraPower founder Bill Gates, the same mind behind Microsoft, sees the irony in the surge of renewable energy in a state known for its oil and gas.
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Texas has a surging direct air capture (DAC) industry and burgeoning economic opportunity due to its large land area and substantial low-carbon energy and storage resource potential. According to Rhodium Group, in 2035 and 2050, Texas is forecasted to lead in DAC deployments and job development opportunities.
Whether it’s the size of its population or its economic landscape dominated by hydrocarbons, companies in the renewables space are finding Texas equally as attractive. Whether that’s related to its numerous sunny days, windy conditions along the Gulf Coast or its abundance of hydrocarbon infrastructure, Texas has a lot to offer.
And renewable energies aren’t without their headwinds—costs and their intermittent nature are still bridges that must be crossed. And the Uri winter freeze in Texas not only froze gas facilities but wind turbines as well. If anything, it’s a case in point about the reliability of certain renewable resources under extreme weather conditions.
But one thing is for sure, Texas is truly an all-of-the-above energy state.
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