The Houston, Texas Energy Market

Texas being only second to Alaska in land mass is also second only to California in population. It would stand to reason then, that Texas would be the national leader in the consumption and production in all things energy related. (Department of Energy U.S., 2013) With the environmental conditions in the State of Texas and their industrial population most of the over one tenth the national average consumption is for cooling. Most of the production of energy in Texas is done using either crude oil and/or natural gas; however Texas is rapidly developing new forms of non-hydroelectric energy as well. Most of the developing is going into the production of Wind Energy using wind turbines place strategically throughout the State.

There are several different classifications of energy produced in the State of Texas. This will be a brief outline of those energy products. No one product can be confined to Houston Texas alone but throughout the entire state of Texas.

Energy products produced in Texas


One of the most prevalent products throughout Texas is Petroleum. Texas leads the United States in not only the production of crude oil but also has some of the largest crude oil reserves found anywhere. One can find about one quarter of the United States total reserves, foreign and domestic, throughout the State of Texas.

The Texas State signature crude is named the West Texas Intermediate (WTI) for its location in the State. WTI is graded at high grade, with low-gravity and is a “sweet” low sulfur crude oil. WTI’s largest use after refinement is in motor gasoline. WTI serves as the “bench mark” for setting oil prices in the United States. (Department of Energy U.S., 2013)

Natural Gas

The State of Texas is the location of one third of the top one hundred producing gas fields in the United States. These fields are either completely or partially located within the border of the State of Texas. The largest of the active gas fields is located in the Fort Worth Basin area, while the majority of the larger fields are located in the Northeastern part of the State around the East Texas Basin. The location of the fields in the State of Texas makes Texas the largest repository of Natural Gas in the United States.


Texas produces twice as much electricity than the next largest State in the Union, with two thirds being generated by independent power producers. About one half of the electric generated in Texas is generated by gas-fired plants with about one third of the remaining generated by coal-fired plants. The rest of the electric power is generated by renewable resources. Texas has 6 coal fire plants, 2 nuclear plants, and the rest are renewable sources such as wind power and/or natural gas-fired plants.

How things are expected to change

Texas Public Utilities Commission adopted the Renewable Energy Mandate in 1999. The mandate was reformed in 2005 and required that by no later than 2015 5880 megawatts or approximately 5% of the States power requirements must be met by renewable resources. It also states that no later 2025 no less than 10,000 megawatts must be generated by renewable resources and that no less than 500 megawatts must be other than wind sources. These changes will help the environment and change the way people look at their power needs. (Department of Energy U.S., 2013)