Report: Power demand in far west Texas to double by 2040

PBOG | Source: Permian Basin Petroleum Association Magazine | Posted 05/13/2024

“We believe the far west zone in ERCOT will see enough load growth to support significantly more renewable development without curtailments,” Riley Prescott of Enverus said. “The far west will need a large power generation buildout to meet the forecast load growth. Without it, we expect power prices in the area will rise significantly.”

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Enverus Intelligence Research predicts a significant surge in power demand in far west Texas by 2040, largely driven by trends towards electrification in various industries, including potential adoption in oil and gas operations and the growth of cryptocurrency mining. This anticipated increase in electricity consumption is expected to necessitate a substantial expansion in power generation infrastructure to avoid potential price spikes in the region.

Enverus also highlighted the shift towards electrification of natural gas combustion processes, particularly in compression activities, as a key strategy for reducing emissions. The analysis noted a shift in 2022 where electricity demand surpassed gas production in the Permian Basin, partly due to early electrification initiatives and the relocation of cryptocurrency mining operations to Texas. This changing landscape underscores the need for a proactive approach to power infrastructure development and emission reduction efforts in the region.

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Report: Power demand in far west Texas to double by 2040

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