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Clean Energy The Permian Basin’s contribution to U.S. clean energy and renewable energy capacity is significant and growing. One particularly attractive aspect of the Permian Basin energy complex which should influence future growth is the low-carbon nature of the crude oil native to the region. The carbon dioxide (CO2) content is 22.8% lower than the average of the remainder of world production. Permian oil has 57.6% less CO2 content than Middle Eastern oil and contains 74.4% less CO2 content than tight sand formations. It is also substantially cleaner than the Mayan oil from Mexico and the production from Nigeria.10 In fact, the petroleum from the Permian Basin has the most attractive low carbon characteristics of any major onshore formation in the world. On an energy equivalent basis, Permian Basin low-carbon oil has 42.5% lower CO2 emissions than coal (as compared with only 25.2% for the remainder of the world’s oil). Natural gas emissions relative to coal are 46.2% lower (or 60.0% when supplemented with carbon capture technology).11 Texas’ growth in renewable energy over the past decade is considerable, with wind and solar power (combined) comprising 7.8% of overall power generation in Texas in 2010 to 25.2% in 2020.12 New Mexico is another growing renewable energy center, with the fifth-highest new installations in 2021, adding 1,374 MW.13 Texas ranks first among all U.S. states for installed wind capacity and is adding new facilities at a faster rate than other areas. Of the U.S. total wind capacity of 121,770 MW in 2020, a total of 32,600 MW (27%) came from Texas.14 For context, only four countries (China, the United States, Germany, and India) have
“Oil Industry CO2 per Barrel?” Thunder Said Energy, April 15, 2021. https:// thundersaidenergy.com/downloads/oil-industry-co2-per-barrel/. 11 The Perryman Group 12 Golding, Garrett. “Surging Renewable Energy in Texas Prompts Electricity Generation Adequacy Questions.” Federal Reserve Bank of Dallas, August 17, 2021. 13 “U.S. Surpasses 200 Gigawatts of Total Clean Power Capacity, but the Pace of Deployment Has Slowed According to ACP 4Q Report.” American Clean Power, February 25, 2022. https://cleanpower.org/news/u-s-surpasses-200-gigawattsof-total-clean-power-capacity-but-the-pace-of-deployment-has-slowedaccording-to-acp-4q-report. 14 “The US Wind Turbine Database,” (n.d.). https://eerscmap.usgs.gov/uswtdb/ 10
higher installed wind capacity than Texas.15 In addition, Texas installed the most wind capacity of any state in 2020, adding 4,137 MW. Wind capacity in the Permian Basin has more than doubled in the past decade, increasing from less than 1,663 MW in 2010 to nearly 4,003 MW in 2020. Additional projects are anticipated in the future. In 2020, approximately 93% of all Texas solar capacity was in the Permian Basin.16 Solar capacity in the Permian Basin as of 2020 was 4,524 MW. The capacity in all of Texas in 2020 was 4,869 MW. Texas ranks second to California with 12,332 MW. However, when it comes to capacity additions, Texas outpaced California with 2,459 capacity additions in 2020, compared to California’s 1,610 MW additions. Solar capacity in Texas has been expanding rapidly, reaching 13,845 in late 2021.17 About 30% of the state’s currently planned solar capacity is scheduled to be built in the Permian Basin.18 New Mexico also has a small solar footprint with 1,288 MW installed as of 2021.19 Major players in the Permian Basin are continuing to innovate towards an even cleaner barrel via carbon capture and sequestration as well as facilities that will manufacture lower-carbon gasoline from natural gas. Evidenced by the sheer magnitude of the region’s oil and gas resources, abundant wind power investments and potential, emerging solar capabilities, and continued industry innovations, the Permian Basin is destined to be a major force in providing the energy needed to support global growth while addressing pressing climate challenges.
“Renewable Capacity Statistics 2021.” International Renewable Energy Agency (IRENA), 2021. https://www.irena.org/-/media/Files/IRENA/Agency/ Publication/2021/Apr/IRENA_RE_Capacity_Statistics_2021.pdf 16 www.txrenewables.net 17 “State Solar Spotlight: Texas.” Solar Energy Industries Association, https://seia.org/ sites/default/files/2022-03/Texas%20Solar-Factsheet-2021-YearinReview.pdf 18 “Texas Likely to Add Record Utility-Scale Solar Capacity in the next Two Years,” April 21, 2021. https://www.eia.gov/todayinenergy/detail.php?id=47636. 19 https://seia.org/sites/default/files/2022-06/New%20Mexico%20Solar-Factsheet2022-Q2.pdf 15
