Renewables are booming in oil country

Renewables are booming in oil country

The rapid growth of the renewable energy sector has been astonishing.

Renewables have been the fastest-growing sources of energy worldwide – and we’re seeing solar power coming in first as the fastest-growing source altogether.

Tech companies in particular have been embracing this “Renewable Revolution,” but it’s not just Silicon Valley that’s heading into this territory.

Big businesses like Starbucks and Target have been getting in on it as well, who have each announced aggressive targets to run 100 percent of its global operations with renewable energy.

In the midst of an energy revolution like this one, it’s easy to miss the subtleties involved in making it happen.

And there is one simple reason as to why renewables are surging…

Deep in Oil Territory, Renewables are Booming

Both solar and wind continue to decline in operating costs, while increasing in energy efficiency. The combination is making it difficult for coal to recover and poses a challenge in what had been oil-dominant areas.

Take West Texas, for example.

The Permian Basin, which straddles Texas and New Mexico, continues to be one of the most prolific drilling locations in the country.

Here, operating costs as compared to wellhead prices (the below-market price producers actually receive for the volume coming out of the ground) make for some profitable fields even at low oil prices.

Yet the same location has also become the largest in the country for wind power.

Fact is, even this deep in oil country, Texas produces more wind energy than the next three states combined.

Source: Oilprice.com

Date: May 2018

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