Texas Used Twice as Much Energy as California and Three Times as Much as Florida in 2023
Data values: Total energy consumption by end-use sector and primary energy consumption by source
In 2023, Texas consumed more energy than any other state. Total energy consumption in Texas was twice as much as in California, the second-highest consuming state, and more than three times as much as in Florida, the third-highest consuming state, according to recently released data in our State Energy Data System (SEDS). U.S. total energy use peaked in 2007, and between 2007 and 2023, Texas’s energy consumption increased 21%, while U.S. energy use decreased 5%. According to our SEDS data, most of the energy consumption growth in Texas is attributable to increased industrial activity, population, and electricity demand.
In 2023, energy consumption in Texas was higher than in any other state for every sector. Texas also consumed more coal, natural gas, and petroleum than any other state, and it was second only to California in total renewable energy consumption. In 2023, Texas’s industrial sector alone consumed more energy than all the sectors in California combined, and Texas’s petroleum consumption alone nearly equaled all of California’s energy consumption.
Data values: Total energy…
Utility-Scale Batteries are More Commonly Used for Price Arbitrage: EIA
Data values: File 3.4—Energy Storage
In our annual survey of power plant activity, we ask operators of utility-scale batteries how they are using their systems, and one use case is increasingly prevalent: price arbitrage. Arbitrage involves buying electricity when prices are relatively low and selling that electricity when prices are high.
Utility-scale battery systems can be used for many applications. In previous years, we asked operators to identify the ways they used their batteries. Common use cases included price arbitrage as well as frequency regulation, excess wind and solar generation, system peak shaving, load management, and more.
Beginning with the 2023 survey, we asked operators to identify the primary use case for their battery system. Last year, operators responded that 66% of all utility-scale battery capacity had arbitrage among its uses and that 41% of the total capacity was primarily used for arbitrage.
Data values: File 3.4—Energy Storage
The next most common use case was frequency regulation…
Per Capita Energy-Related CO2 Emissions Decreased in Every State Between 2005 and 2023: EIA
Data values: Per capita CO2 emissions from energy consumption
Per capita CO2 emissions from primary energy consumption decreased in every state from 2005 to 2023, according to recently released data in our State Energy Data System. Total energy-related CO2 emissions in the United States fell 20% over that time, and the population grew by 14%, leading to a 30% decrease in per capita CO2 emissions.
CO2 emissions across the country primarily declined because less coal was burned in the electric power sector. Increased electricity generation from natural gas, which releases about half as many CO2 emissions per unit of energy when combusted as coal, and from non-CO2-emitting wind and solar generation offset the decrease in coal generation. Looking ahead, our Short-Term Energy Outlook forecasts a slight 1% increase in U.S. total CO2 emissions in 2025, in part…
Notice to Operators from RRC: New Fees for Certain Environmental Permit Applications
August 27, 2025 — Senate Bill 2122 of the 89th Texas Legislature establishes fees for certain permit applications to store, treat, or dispose of oil and gas wastes in Texas. Effective on September 1, 2025, the Texas Natural Resources Code §91.1013(b) is amended to require that an applicant for certain waste management permits shall submit to the Commission a nonrefundable fee and surcharge[1] with each application as follows:
- Landfarm, landtreatment, or land application permit or permit amendment: $500 permit fee and a $750 surcharge for a total fee of $1,250.
- Commercial oil and gas waste separation facility permit: $2,000 permit fee and a $3,000 surcharge for a total fee of $5,000.
- Amendment to a commercial oil and gas waste separation facility permit: $1,000 permit fee and a $1,500 surcharge for a total fee of…
$3.5 Million Fines Levied By Railroad Commission
From the Railroad Commission of Texas
August 20, 2025 — The Railroad Commission of Texas assessed $3,537,354.25 in enforcement docket fines against operators and businesses at the Commissioners’ open meeting on Tuesday. The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.
Master Default Orders for operators that failed to appear at Commission enforcement proceedings can be found on the RRC Hearings Division web page.
Master Agreed Orders in which operators…
Are Texas Data Centers Costing Consumers Extra for Electricity?
We expect rapid electricity demand growth in Texas and the mid-Atlantic: EIA
July 31, 2025 —
Data values: U.S. Regional Electricity Sales to Ultimate Customers and U.S. Regional Electricity Generation, Electric Power Sector
In our most recent Short-Term Energy Outlook (STEO), we forecast nationwide U.S. retail electricity sales to ultimate customers will grow at an annual rate of 2.2% in both 2025 and 2026, compared with average growth of 0.8% between 2020 and 2024. The forecast reflects rapid electricity demand growth in Texas and several mid-Atlantic states, where the grid is managed by the Electric Reliability Council of Texas (ERCOT) and the PJM Interconnection, respectively. We expect electricity demand in ERCOT to grow at an average rate of 11% in 2025 and 2026 while the PJM region grows by 4%.
After relatively little change in U.S. electricity demand between 2005 and 2020, retail sales of electricity have begun growing again, driven by rising demand in the commercial and industrial sectors. Developers have proposed numerous data centers and large manufacturing facilities that could consume significant amounts of electricity, and many of these projects are concentrated in the ERCOT and PJM regions. But, the timing of these facilities’ initial operations remains uncertain.
We publish short-term forecasts for electricity sales to ultimate customers for each of the nine census divisions and for the entire United States. We directly incorporate ERCOT’s and PJM‘s monthly projections for power demand into our sales forecasts for the relevant regions. The portion of the power grid that ERCOT operates is located within the West South Central Census Division, which consists of Texas and three neighboring states: Oklahoma, Louisiana, and Arkansas. In Texas, electricity is delivered to end-use customers by four large investor-owned utilities and several municipal utilities.
U.S. proved reserves fell in 2023 from 2022 record: EIA
Data values: U.S. crude oil and natural gas proved reserves 1963–2023
July 16, 2025 — U.S. proved reserves of crude oil and lease condensate totaled 46 billion barrels at year-end 2023, a 4% decline from the previous year’s record, according to our U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2023 report. U.S. proved reserves of natural gas fell to 604 trillion cubic feet, a 13% decline from their 2022 record. Both declines marked the first annual decrease in U.S. proved reserves for those fuels since 2020.
Proved reserves are operator estimates of the volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under existing economic and operating conditions. Prices heavily affect estimates of proved reserves.
Operators revised their proved reserves downward in response to falling prices in 2023 from the historical highs observed in 2022. Annual average wholesale prices at the domestic benchmarks for West Texas Intermediate crude oil and Henry Hub natural gas fell by 18% and 61%, respectively, between 2022 and 2023.
Source: U.S. Energy Information Administration, U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2023
North Dakota’s crude oil and lease condensate reserves decreased 12%, or 611 million barrels, from 2022, the largest annual net decline reported among….
Final Tally of Energy Bills In the 29th Texas Legislature + Bills That Didn’t Make It
June 24, 2025 — Lawmakers ultimately passed 1,213 bills and more than 2,200 resolutions, including constitutional amendments, this session; Abbott has until 11:59 p.m. on June 22, 20 days after the session ends, to veto items in the budget or veto bills that passed in the last 10 days of the session. He has the same deadline to sign bills, according to the Dallas Morning News
BILL NUMBERS ARE IN BLUE AND INCLUDE LINKS TO THE BILL, DISPOSITIONS OF BILLS ARE IN RED, BILL SUBJECT CATEGORIES ARE IN GREEN
BILLS FROM THIS SESSION BECOMING LAW; SIGNED, FILED OR VETOED BY THE GOVERNOR
OIL AND GAS
OIL AND GAS: RRC to oversee task force to address petroleum product theft in the state; would direct the Railroad Commission of Texas to oversee the task force, which would recommend solutions to address petroleum-product theft throughout the state. The group would be made up of industry stakeholders and law enforcement agencies. The bill also mandates that the task force submit a report every two years outlining “recommendations to increase transparency, improve security, enhance consumer protections, prevent the theft of petroleum products, and address the long-term economic impact of the theft of petroleum products.” Authored by Republican Sen. Kevin Sparks of Midland
Passed the Senate and House, with the Senate concurring with House amendments,signed by the Governor May 20th, effective September 1st
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.
SB 771
Passed by the Senate April 30th, passed by the House May 12th, sent to the Governor May 13th, filed without the Governor’s signature May 24th; Effective September 1st
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: An interstate compact for the LNG industry for states that border the Gulf of America; establishes the Gulf States Liquefied Natural Gas Industry Compact, authorizing the Governor of Texas to develop and enter into an interstate compact with other Gulf Coast states to promote the liquefied natural gas (LNG) industry. The compact is designed to facilitate collaboration between member states on issues affecting the LNG sector, particularly focusing on the sharing of information, resources, and services to enhance the protection, growth, and operational efficiency of LNG operations along the Gulf of Mexico.
Passed the House, now leaving the Senate Natural Resources committee with a substitute bill, passed by the Senate May 16th, sent to the Governor May 17th, signed by the Governor My 28th, effective immediately
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Declaration of an oil or gas emergency by the Railroad Commission of Texas and the liability of a person for assistance, advice, or resources provided in relation to an oil or gas emergency
Senator Brian Birdwell (Republican) is the author
Passed the Senate, passed the House as amended May 6th, signed by the Governor May 27th
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Imposition of application fees for certain permits and permit amendments for the disposal of oil and gas waste; Senator Judith Zaffirini (Democrat) is the author
Passed the Senate and the House on May 15th, signed by the Governor May 27th, effective September 1st
(companion bill not passed, HB 3158 Drew Darby is an author; left after second reading in the House, companion bill SB 2122 considered instead)
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Taking on oil, gas and related products theft; “The inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste; creating criminal offenses and increasing the punishment for an existing criminal offense; bill seeks to address the challenges posed by organized oilfield theft by setting out provisions relating to the inspection, purchase, sale, possession, storage, transportation, and disposal of petroleum products, oil and gas equipment, and oil and gas waste in order to provide law enforcement with clear authority to inspect and investigate suspected oil and gas theft, strengthen existing penalties, and modernize and reinforce the state’s legal response to oilfield theft and improper disposal practices”; Senator Kevin Sparks (Republican) is the author
Passed the House April 16th, passed the Senate with agreement on House amendments, sent to the Governor May 7th, signed by the Governor May 19th
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Authorizes the Texas Commission on Environmental Quality to issue permits for land application of produced water — wastewater that comes out of the ground during the extraction of oil and gas production — and develop standards that prevent pollution of surface and groundwater.
Passed the Senate March 13th, passed the House April 29th, sent to the Governor May 1st, signed by the Governor May 13th
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Inactive wells
Plugging of and reporting on inactive wells subject to the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty; would create a severance tax exemption to provide incentives for oil and gas operators to bring inactive gas and oil wells back into production
Has passed the Senate, passed out of the House Energy Resources committee on May 8th with substitute bill, passed the House on May 28th, sent to the Governor May 28th, signed by the Governor on June 20th
(companion bill not passed HB 2766 “Relating to the plugging of certain inactive wells subject to the jurisdiction of the Railroad Commission of Texas” Pending in House Energy Resources committee since April 7th)
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: A severance tax exemption for oil and gas produced from certain restimulation wells; Representative Drew Darby (Republican) is the author
Substitute bill passed the House on May 15th, passed the Senate May 26th, sent to the Governor May 28th, signed by the Governor June 20th, effective January 1, 2026
(companion bill SB 782 Left pending in the Senate Finance committee on May 14th)
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BILLS FROM THIS SESSION BECOMING LAW
OIL AND GAS: Applicability of certain safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution…
Texas Oil Tax Income Way Down In May, Natural Gas Way Up
June 4, 2025 — Oil and natural gas tax income to the State of Texas is up and down.
Oil production taxes for the month of May 2025 were down 26% when compared to May 2024, while natural gas taxes were up 26% for the same period, according to the latest figures from the state Comptroller.
Oil production brought in $441 million while natural gas brought in $227 million in May.
Motor fuel tax income was up 4% year-over-year in May, totaling $339 million.
Motor vehicle sales and rental taxes were up 9% over May a year ago, at $693 million.
Overall, the state sales tax revenue totaled…
Feared “Anti-Renewables” Bills Die; Texas Legislature Does Pretty Good For Environmental Agenda
May 29, 2025 — Some feared “anti-renewables” bills failed to pass the state legislature in the current session, which closes down (and will be adjourned Sine Die!) Monday.
Many of them, despite widespread fear mongering by lobbyists and some Texas journalists, were never much of a threat to renewables.
Meanwhile, the bigger picture indicates that the Texas Legislature passed bills this session that would speed up permitting for home solar and energy storage installations, require licensing of solar power systems salespeople (after claims of consumer solar rip-offs have been greatly increasing) and would make certain that the oil and gas industry cleans up all those leaking, non-producing wells.
HB 3356 was among the most criticized as “anti-renewable energy,” yet it never came close to passing. In fact it never left the Texas House of Representatives, where it was debated in…
Gulf States Liquefied Natural Gas Industry Compact Bill to Become Law
May 29, 2025 — Governor Greg Abbott has signed into law House Bill 2890, which establishes the Gulf States Liquefied Natural Gas Industry Compact.
The bill takes effect immediately.
It authorizes Governor Abbott to develop and then enter into an interstate compact with other Gulf Coast states to promote the LNG industry. Republican Representative Jared Patterson is the author
The compact is designed to facilitate collaboration between member states on issues affecting the LNG sector, particularly focusing on the sharing of information, resources, and services to enhance the protection, growth, and operational efficiency of LNG operations along the Gulf…
Governor Abbott Signs Bill Increasing Penalties for O&G Theft
May 21, 2025 — A bill cracking down on organized oilfield theft has been signed by Governor Greg Abbott.
SB 1806, authored by state Senator Kevin Sparks, provides law enforcement with new, clearer authority to inspect and investigate suspected oil and gas theft and possible organizations involved, and also strengthens some existing penalties.
It will also “modernize and reinforce the state’s…
Legislature Passes Bill Giving No More Than 24 Hours Notice for TCEQ Water Tests
May 21st, 2025 — The Texas Legislature has passed and sent to Governor Greg Abbott a bill aimed at keeping water testing by the Texas Commission on Environmental Quality more accurate by mandating that the agency give no more than 24 hours notice before it tests water.
SB 1662 is simply a procedure in which a customer files a complaint against a water company, and the TCEQ is…
Legislature Passes Bill Establishing LNG Industry Compact
May 14, 2025 — The Texas Legislature has passed a bill that sets up a Gulf States Liquefied Natural Gas Industry Compact, which empowers the the Governor to develop and establish or join an interstate compact with other states along the Gulf Coast to promote the liquefied natural gas (LNG) industry.
HB 2890 passed the Texas House of Representatives on April 23rd in an engrossed version, which was then passed to the Senate and was then passed on May 14th by a final vote. The bill now…
USGS Releases Assessment of Undiscovered Oil & Gas Resources In the Hosston and Travis Peak Formations Along the Gulf Coast
May 8, 2025 — The U.S. Geological Survey released its assessment of potential for undiscovered oil and gas in two formations under much of the Gulf of America Coast from Texas to Florida, assessing that there are technically recoverable resources of 35.8 trillion cubic feet of gas and 28 million barrels of oil.
The estimate for today’s assessment is as much gas as the United States consumes in 14 months at the current rate of consumption. Since exploration began in the area, the Hosston and Travis Peak Formations have produced 8 trillion cubic feet of natural gas, as well as 126 million barrels of oil.
“USGS energy assessments typically focus on undiscovered resources – areas where science tells us there may be a resource that industry hasn’t discovered yet. In this case, our assessment found substantial resources of gas,” said Sarah Ryker, acting director of the USGS.
The onshore Gulf Coast is a major energy production area thanks to a world-class petroleum system and extensive energy exploration and production infrastructure. This assessment is limited to the Hosston and Travis Peak formations, which comprise a small portion of the onshore Gulf Coast’s Cretaceous aged rocks. While the study area stretches from the Mexican border along the Gulf of America to most of Florida, resources are concentrated in one sliver extending from southeastern Texas across central Louisiana through the Mississippi Delta and into state waters of Louisiana, in the Hosston-Travis…
70-Year-Old Nuclear Fusion Problem Solved, Helps Prevent Sustaining Plasma Inside Fusion Reactors: UT
By Ameya Palega
May 7, 2025 — Scientists at the University of Texas at Austin, Los Alamos National Laboratory, and Type One Energy Group in the US have finally solved a problem that has troubled fusion energy research for 70 long years. Using a novel symmetry theory approach, the collaboration has resolved a hurdle that has prevented sustaining plasma inside fusion reactors.
Nuclear fusion technology promises abundant clean energy with no planet-warming gases or risk of highly radioactive waste. Research in this field has been ongoing for decades but has picked up pace in recent years, with the National Ignition Facility (NIF) even demonstrating a net energy gain from fusion reactions.
The challenge, however, in scaling up nuclear fusion has been containing high-energy particles within the walls of the reactor. For fusion to occur, isotopes of hydrogen are heated to temperatures greater than those on the surface of the Sun and exist in a fourth state of matter called plasma, before fusing to form helium molecules and releasing energy.
However, at these temperatures and high energy states, alpha particles leak from the fusion reactor, causing the plasma to become less dense. As the plasma loses heat, it can no longer…
Water Is the New Oil (Again): Shoring Up Water Supply, Curbing Demand Key to Texas’ Future Growth — Dallas Fed
Texas’ strong economic growth depends on a steady supply of fresh water. Without significant investment, however, the state could face shortages during future droughts. Supply can be bolstered with reservoirs, reuse and conservation. Additionally, a transition to market-based policies could allow price signals to more efficiently mediate supply and demand.
Water is essential to the expanding Texas economy and its ability to continue outpacing U.S. growth. However, Texas’ increasing demand for water is running up against its current supply, which is already stressed by extreme heat and more frequent droughts.
Funding for water infrastructure improvements has emerged as a priority for the Legislature during its 2025 legislative session. Absent changes to policy, Texans could face significant water shortages during droughts and constraints on future growth and economic development.
Gauging potential water shortages
The Texas Water Development Board produces the State Water Plan, a blueprint that addresses supply and demand for water during droughts. In 2022, the agency estimated that if a severe drought (“drought of record”) were to occur in 2030, the state would be short 4.7 million acre-feet—more than 20 percent of projected demand.
One acre-foot of water is enough to supply two to three homes for a year. It is a unit of measure equivalent to the amount needed to cover an acre with a foot of water.
Water resources and potential shortages are highly regional because of Texas’ size. In recent years, portions of East Texas experienced near- or above-normal rainfall, while the western half of the state was drier than normal (Chart 1).
Some Texas communities already face extremely low water supplies. Reservoirs in the Rio Grande Valley are below 25 percent capacity. As a result, Brownsville has limited car washing and landscape irrigation and drained city swimming pools to reduce water demand. The city of Mission has weighed a moratorium on new construction, and Corpus Christi has restricted residential yard watering to conserve water. Areas in central Texas, including Austin, have implemented similar measures as Lakes Buchanan and Travis hover around half capacity.
Rapid urban growth and depletion of the Ogallala Aquifer, a prominent water source for agriculture in the Panhandle and West Texas, will exacerbate the impact of future droughts. Under severe drought conditions, the shortage could total 6.9 million acre-feet per year in 2070 if the State Water Plan’s recommendations are not implemented.
Rules differ for groundwater, surface water sources
Texas agricultural users draw mainly from groundwater supplies, while municipal and industrial users rely on both surface water and groundwater.
Nine major aquifers and several minor ones hold groundwater. Texas assigns groundwater rights using the rule of capture, which gives landowners the legal right to the water under their property. Groundwater conservation districts can, however, require well permitting or regulate the pumping and spacing of wells.
Aquifers recharge naturally as rainwater percolates through the ground. Some aquifers recharge quickly; the Ogallala Aquifer does not. The State Water Plan projects groundwater availability will fall 25 percent from 2020 to 2070, partly because of the Ogallala’s depletion.
By comparison, the state owns surface water and grants water rights to users such as cities, utilities, firms and individual landowners. River authorities or watermasters administer water use on some river systems, including the Rio Grande, the Brazos and the Lower Colorado. During a drought, the users with the longest-standing permits tend to take priority.
Regulators manage surface water availability with storm and wastewater capture and reuse, stream diversion and reservoirs. Some metro areas are heavily dependent on surface water. The greater Dallas–Fort Worth area sources 89 percent of its water demand from surface water.
Water demand to grow as economy, population expand
The State Water Plan anticipates water demand increasing 9 percent during the half century ending in 2070, mostly because of population-growth-driven municipal water consumption.
Crop irrigation accounts for the majority of water use in Texas (Chart 2). Farmers and ranchers used 9.8 million acre-feet of water in 2020—mainly groundwater, and much of it from the Ogallala Aquifer.
…Eagle Ford Natural Gas Production Increases as Crude Oil Production Holds Steady: EIA
In our April Short-Term Energy Outlook, we forecast U.S. annual natural gas production from the Eagle Ford region in southwest Texas will grow from 6.8 billion cubic feet per day (Bcf/d) in 2024 to 7.0 Bcf/d in 2026. The increase in natural gas production comes as natural gas prices rise and demand for liquefied natural gas exports grows. Oil production in the Eagle Ford, on the other hand, has hovered around 1.1 million barrels per day (b/d) since 2020, and we forecast it will remain about the same through 2026.
This increase in natural gas production with stable oil production in the Eagle Ford region is a result of increasing gas-oil ratios. As more oil and natural gas are produced, pressure within the reservoir declines, allowing more natural gas relative to oil to be produced.
The Eagle Ford region contains many plays, the largest of which are the Eagle Ford play and the Austin…
Texas Lawmaker Seeks to Improve Texas’ Power Capacity by Joining Regional Grid and Agreeing to Federal Oversight
Electrical grids are vulnerable to climate change, which amplifies intense heat and drought in the summer and intensifies storms in the winter. Nowhere is the problem more pronounced than in Texas, as recent history has shown.
Texas has the added challenge of running its own power grid that doesn’t cross state lines and connect extensively to neighboring regional grids—by design, thus enabling the state to evade regulation by the Federal Energy Regulatory Commission.
So it’s been hard for Texas in times of extreme heat or intense storms to come up with the power it needs at times of peak demand when, in the age of climate change, having adequate, reliable power can prevent people from freezing or sweltering to death in their homes.
“Broadening your interconnection reduces your risks and increases your reliability,” said Dennis Wamsted, an energy analyst at the Institute for Energy Economics and Financial Analysis, a nonprofit energy policy research group, who noted the need for building interregional transmission lines. The lines are expensive to build, he said, but interconnection could lower energy costs once the transmission lines are built.
Now, freshman U.S. Rep. Greg Casar, a former a labor organizer, Austin City Council standout and rising progressive star in Texas, has introduced legislation that would establish power connections across state borders that he said would prevent climate-related blackouts as well as aid the transition to clean energy and cut electricity bills.
He also wants $11 billion from a federal Department…