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Texas the oil state is falling in love with Solar Energy

"Everything's bigger in Texas," as the saying goes. Texas generates most electricity in the U.S., and accounts for approximately 25% of the U.S. oil refining and natural gas industry.

Texas is also on the verge of a renewables boom since it creates the most wind power in the United States. Developers plan to quadruple solar capacities, adding enough panels to light up Dallas in 2020. Solar is already popular when it comes to households, however it is becoming more and more appealing for oil and gas drillers. In a way, Texas is combining something which at first sight seems incompatible. How is this possible?

Solar – Support for Oil And Gas Producers

The renewables boom is taking place mostly in the heart of the U.S. shale oil industry – the Permian Basin. Solar and wind farms have shown it is a reliable energy source for the production facilities. Occidental Petroleum, a major player in the shale oil industry in the Permian Basin, announced that it will launch a solar-powered facility to power oilfields. Another oil giant ExxonMobil XOM is planning to reach 1 million oil-equivalent barrels per day by 2024 as it signed a multi-year contract with Orsted DNNGY, the Danish renewable company. Orsted should provide around 500 megawatts (MW) of energy, split between wind and solar in order to distribute electricity to Exxon's facilities in the Permian Basin. Apache Corporation APA and Royal Dutch Shell (NYSE: RDS-B) also power part of their oil fields in the Permian with solar. Oil producers saw advantages in using solar and other renewables for powering their remote oilfields, because they provide a quick, clean, cheap and flexible source of energy, unlike coal and natural gas plants.


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