The Public Utility Commission of Texas (PUCT) has approved the Permian Basin Reliability plan, supporting the expansion of the largest oilfield in the US to meet the rising demand for electricity.  

The plan follows a report completed by energy companies across the US, alongside the financial information company S&P Global, that warned the Texas Commission of the rising demand for electricity in the Permian Basin.  

The PUCT and the Electric Reliability Council of Texas (ERCOT) curated the report in December 2023.  

The expansion, and electrification, of oilfield operations will reduce emissions and pollution associated with fracking equipment.  

However, it will also increase the strain on Texas’ already under-pressure power grid.  

Texas has a high level of electricity use because of multiple energy-dense industries operating in the area, mainly data centres, cryptocurrency mining and oilfields. Population and temperature increases have also led to record-high electricity use in the state last month.  

The Dallas Fed Energy Survey, a quarterly survey conducted by nearly 200 oil and gas companies located in Texas, southern New Mexico and northern Louisiana, found that 29% of those who took the survey concluded that grid access uncertainty is a key challenge in electrifying operations.  

Some 25% of those who undertook the survey cited grid infrastructure challenges as a key hurdle to electrification.  

According to ERCOT, the operator for Texas’ power grid, electricity demand across the Permian Basin is set to increase by 27GW by 2027. This is equivalent to a third of the operator’s entire energy system capacity.  

Lori Cobos, PUCT Commissioner, explained that ensuring the Permian Basin has reliable electricity access to power Texas’ oil and gas industry is a top priority for the Commission. 

The PUCT has taken appropriate action to direct ERCOT to develop a transmission infrastructure plan for the region, Cobos continued.  

To deploy the appropriate upgrades to Texas’ energy system, ERCOT said it needs to spend between $12.95bn and $15.32bn.