Texas approves plan to expand Permian Basin drillers’ power grid access

The Public Utility Commission of Texas said Thursday it approved the Permian Basin Reliability Plan, which is designed to expand power grid infrastructure in the oilfield to accommodate rapidly growing demand from the oil and gas industry.

The PUCT directed top Texas power grid operator ERCOT to compile the plan late last year after Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), Exxon Mobil (NYSE:XOM) and Pioneer Natural Resources (since acquired by Exxon) submitted a report with S&P Global warning of an upcoming significant increase in electric load demand in the Permian Basin.

Demand on the Texas power grid recently reached record levels, with the state serving as home to some of the most energy intensive industries, including data centers, bitcoin mining and oilfield operations, exacerbated by surging population growth and sweltering heat.

ERCOT has forecast electricity demand in the Permian could rise to nearly 27 GW by 2038, equal to nearly a third of the current summer demand of the entire ERCOT system.