Energy Landscape
Analysis: Texas

Macro Analysis
Ahmad Alkayraan

Macro assessment
1,831.36
900
1,100
1,300
1,500
1,700
1,900
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Real GDP in billion U.S. dollars
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
'00'01'02'03'04'05'06'07'08'09'10'11'12'13'14'15'16'17'18'19'20'21
Income in current U.S. dollars
3…
5
10
15
20
25
30
35
Resident population in million

Energy consumption
46%
35%
9%
7%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
Petroleum Natural gas Renewable energy Coal Nuclear electric
power
Energy consumption in Texas in 2020, by fuel (in trillion Btu)
Total consumption: 13,349.9 TBtu.

Natural Gas

Natural Gas
2,555,413
2,876,483
388,835
708,374
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Texas production & consuption (MMcf/day) compared to the U.S.
U.S. Natural Gas Total Consumption (MMcf/day) U.S. Dry Natural Gas Production (MMcf/day)
Texas Natural Gas Total Consumption (MMcf/day) Texas Dry Natural Gas Production (MMcf/day)
If Texas were a country, it would be the 3rd largest natural gas producer
in the world.

Infrastructure and Proved reserves
Infrastructure
97,618
Gas wells
174 capacity ???
Processing facilities
47,000 miles
transmission pipelines
40
Storage facilities
847 BCF
Underground storage
capacity
113
Local distribution companies
494.9
126.1
NG-Proved reserves (Tcf)
US Total
Texas

Liquified Natural Gas
Texas-produced natural gas that is transformed into LNG is shipped all over the world

Energy Mix
Renewable Energy
Krishna Raj

Texas Electricity Production Share and Estimates
Note(s): United States (Texas); 2020
Source(s): EIA; Visual Capitalist; Statista
52.1%
19.6%
14.9%
8.7%
2.6%
1.7%
0.4%
0% 10% 20% 30% 40% 50% 60%
Natural gas
Wind
Coal
Nuclear
Biomass and other
Solar
Hydropower
Share of electricity generation
4

Crude Oil Production
• Most crude oil refineries and
refining capacity in US
• Accounts for 43% of all crude oil
production in US

Texas Energy Mix Over Past Decade
• Notice fuel shift away from coal to wind and solar • Energy demand has increased steadily over time

Solar and Wind Infrastructure and Fuel Mix

Estimated unsubsidized levelized costs of wind
energy generation (2017)
Note(s): United States; 2017
Source(s): Lazard
60
65
75
50
50
65
30
41
47
30
30
33
0 10 20 30 40 50 60 70 80
U.S. overall
Northeast
Southeast
Midwest
Texas
Southwest
High estimate Low estimate
Unsubsidized levelized cost in U.S. dollars per megawatt hour
2

Estimated unsubsidized levelized costs of solar
energy in US (2017)
Note(s): United States; 2017
Source(s): Lazard
194
242
228
215
194
176
53
62
59
56
43
40
0 50 100 150 200 250 300
U.S. overall*
Northeast
Southeast
Midwest
Texas
Southwest
High estimate Low estimate
Unsubsidized levelized cost in U.S. dollars per megawatt hour

Number of incentives and policies for
renewables and energy efficiency in US, 2021
Note(s): United States; as of January 2021
Source(s): NC Clean Energy (DSIRE); US Department of Energy
146
134
112
100
96 95
79
71 71 69
65 64
60 57 56
52 50 47 45 42 41 39 37
0
20
40
60
80
100
120
140
160
Number
of
incentives
and
policies

Coal
Anni Duan

Coal resources and Operating Coal Mines
Micare Coal Mine
Eagle Pass Coal Mine
San Miguel Lignite Mine
Kosse Coal Mine
Calvert Coal Mine
South Hallsville No. 1 Mine
Tatum Strip Mine
Liberty Mine

Coal Production across the states
Data resource: U.S. Energy Information Administration (eia)

Potential Solution: Coal Gasification
COAL , , & Carbon Capture technology
• Gasification Technologies Council (GTC)
• University of Texas at Austin
• Carbon Clean Solutions
• Valero Energy
• Synfuels Americas
• S&B Engineers and Constructors
• NET Power
Texas Clean Energy Project

Infrastructure
Justin Poole

Texas current energy infrastructure
● The Texas Interconnection, covers 213 of the 254 Texas counties, is managed by the Electric Reliability
Council of Texas (ERCOT) is the independent system operators.
● Texas has a total of 683,533 miles of roads and 14,092.7 thousand miles of highways.
● The RRC reports that from January 2021 to December 2021, total Texas reported production was 1.4
billion barrels of crude oil and 10.3 trillion cubic feet of total gas.
● Texas stores 714 million barrels of crude oil for the U.S. Strategic Petroleum Reserve (SPR).
● 45 billion dollars are being invested into maritime projects over
the next 2 years.

Current transmission structure and future investments
● A future renewables plan is to build a 36 GW buildout in the Solar Energy Industries Association
(SEIA)
● Texas had more than 38,000 megawatts of wind capacity, which was more than one-fourth of the
state's total generating capacity and almost four-fifths of its renewable generating capacity.

Electricity
● Net electricity generation 481,844,256 mwh.
● Electricity grid can distribute 86,000 mw at full capacity.
● Electricity is purchased from over 130 REPs (retail electric providers) which own the actual poles, power
lines and meters and distributes to consumers.
● ERCOT connects more than 52,700 miles of transmission lines, more than 1,100 power generation
facilities, providing electricity to more than 26 million customers.

Crude oil infrastructure and distribution
● The state's 31 petroleum refineries and 5,210 barrels produced per day
● 8,632 million barrels exported
● Produces 4,925 thousand barrels of gasoline
● Produces 21,717 thousand barrels diesel
● 5 new pipelines are under construction and will increase the
capacity delivered from the Permian Basin by 4.18 billion cubic
feet per day (Bcf/d).

Key Regulators and Agencies
Federal
• Federal Energy Regulatory
Commission (FERC)
• U.S. Department of Energy
• Environmental Protection
Agency (EPA)
State
• Electric Reliability Council
of Texas (ERCOT)
• Texas Railroad Commission
• Public Utilities Commission
of Texas
• Texas Commission on
Environmental Quality
(TCEQ)

Legislative Landscape
Federal:
• Inflation Reduction Act
• Infrastructure Investment and Jobs Act
State:
• Competitive Renewable Energy Zones (CREZ)
• Texas Emission Reduction Plan (TERP)
• Senate Bills 2 and 3 (ERCOT Winterization)
Local:
• Tax incentives, grants, loans and project
financing

Hydrogen
• Incentives for hydrogen
production, infrastructure, and
hub development exist through
federal and state legislation
• Roughly two-thirds of existing
U.S. hydrogen transportation
infrastructure is in Texas
• Geological formations within the
state are conducive for hydrogen
storage
• Potential for existing industrial
processes to transition to
hydrogen

Nuclear
• Texas has two operating nuclear plants,
Comanche Peak and South Texas Project
• Roughly 10% of the electricity in Texas is
generated by nuclear power
• Regulatory and project development
environment is difficult
• Decommissioned coal burning plants have
potential for being retrofit with small
modular reactors (SMRs)

Battery Storage
• Texas has 7.9 gigawatts of battery storage capacity
planned to be built by 2025
• Battery storage projects in the state have been
subject to high rates of inactivity and cancellation
• Given the state’s large installed renewable capacity
there is motivation to explore battery storage

Carbon Capture
• Carbon Dioxide emissions in Texas
• 1/4th of CO_2 emissions of US industrial sector
• 1/8th of CO_2 emissions of US electricity generation sector
• Texas has significant onshore and offshore carbon sequestration
potential
• Large federal incentives and subsidies exist for
carbon capture technologies

Q&A

Thanks for listening

Appendix

Appendix: Most sectors cannot easily switch from natural gas to
another fuel
0% 25% 50% 75% 100%
food
beverage and tobacco products
textile mills
textile product mills
apparel
leather and allied products
wood products
paper
printing and related support
petroleum and coal products
chemicals
plastics and rubber products
nonmetallic mineral products
primary metals
fabricated metal products
machinery
computer and electronic products
electrical equipment, appliances, and…
transportation equipment
furniture and related products
miscellaneous
total United States
0 1,000 2,000 3,000 4,000
equipment is not capable of using
another fuel
switching adversely affects the products
unavailable alternative fuel supply
environmental restrictions
long-term contract in place
unavailable storage for alternative fuels
another reason
combination of reasons
don't know/didn't answer
Natural gas fuel-switching limitations by reason
billion cubic feet (Bcf)

Appendix: Natural Gas exporting capacity
Once completed, the three export projects under construction will expand U.S. LNG peak export capacity by a combined 5.7 Bcf/d
by 2025:
• Golden Pass LNG consists of three standard-size trains, each with a peak capacity of 0.8 Bcf/d, for a total capacity of 2.4 Bcf/d. Golden Pass LNG is on the site of an
existing regasification facility and will use shared infrastructure, which helps to reduce project costs and shorten the construction timeline.
• Plaquemines LNG consists of 24 mid-scale trains, each with a peak capacity of 0.07 Bcf/d. Each liquefaction train is part of a two-unit block for a total of 12 blocks
with a combined peak capacity of 1.8 Bcf/d.
• Corpus Christi Stage III is on the site of an existing terminal with three liquefaction trains in operation. Each of the 14 new, mid-scale trains under construction has a
peak capacity of 0.11 Bcf/d. Each train is part of a two-unit block for a total of seven blocks with a combined peak capacity of 1.6 Bcf/d.

Appendix: Natural Gas exporting capacity

Potential solutions: Coal Gasification
• Gasification Technologies Council (GTC): The GTC is a trade association based in Texas
that promotes the use of coal gasification and other advanced gasification technologies.
• University of Texas at Austin
• Carbon Clean Solutions
• Valero Energy: Valero is a Texas-based energy company that has developed a coal
gasification technology called "Hydrogen Energy California" (HECA). HECA converts coal into
a hydrogen-rich syngas, which can then be used to produce electricity or other fuels.
• Synfuels Americas: This Texas-based company is developing a coal gasification facility in
Penwell, Texas, that will convert coal into syngas and other chemicals. The facility is expected
to begin operations in 2022.
• S&B Engineers and Constructors
• NET Power: NET Power is a technology company based in Texas that has developed a new
type of natural gas power plant that uses a variant of coal gasification technology. The plant is
designed to capture all of its carbon emissions and produce low-cost electricity.

Infrastructures

Transportation: Existing Coal Terminals Ports
Port of Houston
Port of Houston
Port of Corpus Christi
Port of Corpus Christi
Myrtle Grove
Midstream Terminal
Myrtle Grove
Midstream Terminal
McDuffie Coal Terminal
McDuffie Coal Terminal