.The Texas Energy Report – 17 Years Bringing You News from the Energy Capital of the Planet

RRC Says Texas Granted Primacy Over Class VI Wells

From The Railroad Commission of Texas:

Click here for frequently asked questions on the importance and processes of primacy

“The U.S. Environmental Protection Agency (EPA) has announced that it has approved the State of Texas’ application and will be granting Class VI Underground Injection Control (UIC) primacy to the state.

“This approval will give the Railroad Commission of Texas primary enforcement authority for Class VI wells, which are used for the injection of carbon dioxide into deep underground rock formations for permanent storage.

“This approval by the EPA recognizes RRC’s expertise to add Class VI wells to our UIC program, to continue our work of protecting Texans and our natural resources,” said Wei Wang, RRC Executive Director. “Additionally, primacy will streamline the application process and provide the regulatory certainty that is critical to Texas, which is one of the most productive energy regions in the world.”

The RRC has a long history of regulating various classes of injection wells, providing strong oversight and protecting underground sources of drinking water, and its UIC program has been commended by the EPA Region 6 during annual evaluations.

“Approving Texas’ request to be in charge of this critical program is a big step forward for cooperative federalism—as big as the state of Texas,” said Regional Administrator Scott Mason. “The Texas Railroad Commission has demonstrated that the state is ready..

Texas A&M Researchers Develop Metallic Gel That Could Transform Batteries

November 7, 2025 — Researchers at Texas A&M University have developed the first known metallic gel. Unlike everyday gels, like those used in hand sanitizers, hair products or soft contact lenses, this new material is made entirely of metals and can withstand extreme heat. The discovery could be a game changer for energy storage.

The gel is created by mixing two metal powders. When heated, one metal melts into a liquid, while the other stays solid and forms a microscopic scaffold. The liquid metal remains trapped inside this structure, creating a gel-like material that looks solid but contains liquid within.

Everyday gels are semi-solid materials containing an organic backbone holding liquids in place at room temperature. Unlike them, metallic gels require very high temperatures, which, depending on the metals used, can be around 1,000 degrees Celsius or 1,832 degrees Fahrenheit.

“Metallic gels have never been reported before, probably because no one thought liquid metals could be supported by an internal ultrafine skeleton,” said Dr. Michael J. Demkowicz, a professor in the Department of Materials Science and Engineering, who led the research. “What’s surprising in this case is that when the majority component — copper — was melted into liquid, it didn’t just collapse into a puddle. That’s what pure copper would have done,” he said.

Metallic gels made from highly reactive metals with strong electrical attraction, known as electronegativity, can be used as electrodes in liquid metal batteries (LMBs). In simple terms, these metals are very reactive and easily bond with other materials, which helps the battery work efficiently.

LMBs are special types of batteries that store and release large amounts of electrical energy. Instead of using solid materials like most batteries, they use layers of liquid metal. Because the parts are liquid, they do not wear out as quickly as regular batteries.

So far, LMBs have mainly been used in large stationary systems, such as backup power for building applications that need to keep running during a power outage. They have not been used in moving systems because the liquid inside shifts when the battery moves. This can cause a short circuit, which…

ERCOT Partners with Texas A&M Engineering Experiment Station to Research Large Loads

November 5, 2025 — The Electric Reliability Council of Texas, Inc. (ERCOT) today announced that it is partnering with the Texas A&M Engineering Experiment Station (TEES) to develop detailed generic dynamic models of large loads—such as data centers, crypto, and electrolyzers—and how these loads change their power output during and after a period of grid disturbances (e.g., faults and other power quality events). The partnership is part of ERCOT’s recently announced Grid Research, Innovation, and Transformation (GRIT) program.

“Most of the large loads range from tens to hundreds of megawatts and are based on power electronics technology,” said Prashant Kansal, ERCOT Director of Grid Transformation. “This represents a similar shift to what has been seen in the change from conventional generation to inverter-based generation—only at a much larger scale for loads and will introduce complexities and new ways in which large load interacts with the grid.”

With the significant growth of large loads on the grid, ERCOT is collaborating with TEES to accelerate the development of generic models for various conceptual studies, gain a better understanding of plant-level characteristics, and benchmark models in the lab.

“It is critical to accurately model large load behavior during and immediately after grid disturbances to understand grid stability, which drives how…

Texans Struggle with Rising Energy Costs Amid Grid Strain, New UH-TSU Survey Finds

Key Takeaways from this artlcle:

Nearly one-third of Texans face high energy burdens, with low-income, minority, and rural communities disproportionately affected due to aging homes and inefficient infrastructure.
Rising utility costs, grid upgrades, and new industrial demands like data centers threaten to worsen affordability and reliability across the state.
While conservation and clean energy is a potential solution, public understanding is low and opinions are deeply divided along partisan lines, highlighting a need for broader education and policy focus on both supply and demand.

October 28, 2025 — Texans face growing energy inequality as vulnerable communities, including those along the Gulf Coast, endure high energy burdens, rising utility costs and aging homes, according to a new survey by the University of Houston and Texas Southern University.

The statewide survey, conducted by UH’s Hobby School of Public Affairs and TSU’s Executive Master of Public Administration program in the Barbara Jordan-Mickey Leland School of Public Affairs, builds on earlier findings showing widespread anxiety over energy affordability and grid reliability. This has intensified as extreme weather, population growth and new energy demands strain the state’s energy system.

“One of the main things that we’ve been finding in our surveys is that people are concerned about cost of living, and energy costs have become an important component of that because they are expenses that households cannot easily reduce,” said Pablo Pinto, director of UH’s Center for Public Policy and Hobby School professor. “It’s no surprise these issues are front of mind for so many families.”

Nearly 45% of households pay over $200 a month on average for summer electricity. About one-third of Texans spend 7% or more of their income on energy — surpassing the high energy burden threshold of 6%.

Michael O. Adams, director of the Executive Master of Public Administration graduate program at TSU, noted that “the report highlights the growing concern among many Texans about their rising electricity bills, which are consuming a larger and larger share of their household income, especially during the peak-use summer months.”

Low-income, minority and rural communities are most affected, largely due to older housing, inefficient infrastructure and limited financial flexibility. Urban households, by comparison, benefit from more efficient housing and higher average incomes.

Texas counties in large urban centers, including the Greater Houston area, Dallas, Austin and San Antonio, show moderate energy burdens ranging from 3%-6% of their monthly income.

Energy burdens are highest in southern…

ERCOT Increasingly Meets Rising Demand with Solar, Wind, and Batteries: EIA

ERCOT electricity demand

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
Note: This data set shows demand in the electric power industry only. ERCOT=Electric Reliability Council of Texas

Since 2021, electricity demand within the Texas electricity grid operated by the Electric Reliability Council of Texas (ERCOT) has steadily increased. In the first nine months of 2025, electricity demand in ERCOT, which manages about 90% of the state’s load, reached a record high compared with the same period in previous years. Over those same months, ERCOT had the fastest electricity demand growth among U.S. electricity grids between 2024 and 2025. From January through September 2025, demand for electric power in ERCOT increased 5% compared with the same period in 2024 to 372 terawatthours (TWh), 23% more than the same months in 2021. Since 2023, wind and solar generation, especially utility-scale solar, have been the fastest-growing sources of electricity in ERCOT and are increasingly meeting rising demand.

Utility-scale solar generated 45 TWh of electricity in the first nine months of 2025, 50% more than the same period in 2024 and nearly four times more than the same period in 2021, when utility-scale solar only produced 11 TWh. Wind generation through the first nine months of this year totaled 87 TWh, up 4% compared with the same period in 2024 and 36% since the same period in 2021. Together, wind and solar generation met 36% of ERCOT’s electricity demand in the first nine months of 2025.

ERCOT electricity generation by source January to September

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
Note: The other category includes nuclear, hydroelectric, biomass, batteries, and other nonrenewable sources. ERCOT=Electric Reliability Council of Texas

Natural gas-fired generation also increased after 2021 but flattened more recently. Natural gas-fired generation between January and September increased to 161 TWh in 2023, 24% more than the same period in 2021. Since 2023, natural gas-fired generation remained relatively flat, totaling 158 TWh between January and September 2025. Although it is still the largest source of electricity for ERCOT, natural gas-fired generation averaged 43% in the first nine months of 2025, compared with 47% in the first nine months of 2023 and 2024.

The types of energy sources used for electricity generation can vary on an hourly basis, especially during the summer. Solar output is highest during midday hours, and the increased availability of solar generation in ERCOT in recent years has reduced the need for natural gas-fired generation during that time of the day. Solar generators in ERCOT produced an average of 24 gigawatts (GW) between noon…

North America’s LNG Export Capacity Could More Than Double by 2029: EIA

north america's liquefied natural gas export capacity by project

Data source: U.S. Energy Information Administration, Liquefaction Capacity File, and trade press
Note: Export capacity shown is project’s baseload capacity. Online dates of LNG export projects under construction are estimates based on trade press and do not reflect expectations for projects ramping to full production following initial shipment. LNG=liquefied natural gas; FLNG=floating liquefied natural gas

Liquefied natural gas (LNG) exporters in the United States have announced plans to more than double U.S. liquefaction capacity, adding an estimated 13.9 billion cubic feet per day (Bcf/d) between 2025 and 2029, according to our Liquefaction Capacity File and trade press reports. The United States is already the largest exporter in the world with 15.4 Bcf/d of capacity.

More broadly, LNG export capacity in North America is on track to increase from 11.4 Bcf/d at the beginning of 2024 to 28.7 Bcf/d in 2029, if projects currently under construction begin operations as planned. Exporters in Canada and Mexico have announced plans to add 2.5 Bcf/d and 0.6 Bcf/d of capacity over the same period, respectively. North American export capacity additions will total over 50% of expected global additions through 2029, according to the International Energy Agency.

north america liquefied natural gas export facilities, existing and under construction

Data source: U.S. Energy Information Administration, Liquefaction Capacity File, and trade press
Note: Bcf/d=billion cubic feet per day; LNG=liquefied natural gas; FLNG=floating liquefied natural gas

United States: The planned liquefaction capacity additions will be concentrated around the U.S. Gulf Coast, already the largest hub for LNG exports in the Atlantic Basin. To supply these terminals, new pipeline projects will be built to transport natural gas from production areas. However, pipeline construction delays remain a supply risk for new terminals. Plaquemines LNG Phase 1 shipped its first cargo in December 2024. Plaquemines LNG Phase 2 and Corpus Christi Stage III began shipping cargoes earlier in 2025, but they have not yet begun commercial operation. Five additional LNG export projects in the United States have reached final investment decision (FID) and are currently under construction:

Port Arthur LNG Phase 1 (1.6 Bcf/d)
Rio Grande LNG (2.1 Bcf/d)
Woodside Louisiana LNG (2.2 Bcf/d)
Golden Pass LNG (2.1 Bcf/d)
CP2 Phase 1 (2.0 Bcf/d)

Canada: On July 1, LNG Canada—the nation’s first LNG export terminal—shipped its first cargo from Train 1 after achieving first LNG production in late June. LNG Canada, located in British Columbia, can produce a combined 1.84 Bcf/d from two liquefaction trains (0.9 Bcf/d per train), and the facility is anticipated to reach full capacity…

U.S. Ethane Exports are Expected to Grow Through 2026: EIA

Monthly U.S. ethane exports and capacity

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, October 2025
Note: Export capacity includes total flexport capacity, which includes other hydrocarbon gas liquid export capacity.

U.S. ethane exports are poised for significant growth through 2026, driven by robust global demand for ethane as a petrochemical feedstock, substantial U.S. export capacity expansions, and larger vessels to carry ethane exports. In our October Short-Term Energy Outlook, we forecast U.S. ethane net exports will grow 14% in 2025, followed by a 16% rise in 2026. The United States does not import ethane.

Ethane, a natural gas liquid primarily extracted from raw natural gas during processing, is a critical component in the petrochemical sector. It’s mainly used as a feedstock to produce ethylene, which is used to make a wide range of products including plastics, resins, and synthetic rubber.

The expansion of U.S. ethane export infrastructure supports export growth. Energy Transfer commissioned its Nederland facility in Texas in the second quarter of 2025 (2Q25), with capacity to export 250,000 barrels per day (b/d) of either ethane or propane. Energy Transfer will also expand its Marcus Hook, Pennsylvania, terminal by 20,000 b/d at the end of 2025. In July, Enterprise commissioned the Neches River ethane terminal in Texas, which has a capacity of 120,000 b/d. The second phase of the Neches River terminal is expected to come online in early 2026, adding 180,000 b/d of capacity. The addition of the Nederland flexport facility and first phase of the Neches River terminal increased U.S. ethane export capacity 16%; the second phase of Neches River terminal will expand it a further 21%.

Developers in the United States are expanding ethane…

Texas Used Twice as Much Energy as California and Three Times as Much as Florida in 2023

total energy consumption, top three states

Data source: U.S. Energy Information Administration, State Energy Data System
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.

three largest states for total energy consumption in 2023 by sector

Data source: U.S. Energy Information Administration, State Energy Data System
Data values: Total energy…

Utility-Scale Batteries are More Commonly Used for Price Arbitrage: EIA

September 23, 2025 — In-brief analysis from the Energy Information Administration:

U.S. utility-scale battery capacity

Data source: U.S. Energy Information Administration, Annual Electric Generator Report
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.

primary use case of U.S. utility-scale battery capacity

Data source: U.S. Energy Information Administration, Annual Electric Generator Report
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

change in per capita carbon dioxide emissions in selected states

Data source: U.S. Energy Information Administration, State Energy Data System
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 89^th 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?

By Michael Shiloh

Aug 12, 2025 — Are artificial intelligence, bitcoin mining and other data centers using so much electricity in Texas that it’s going to raise electricity prices for consumers?

Not so far. Although numerous companies have rushed into Texas with data center plans, the red tape has only begun to spin around them, and energy analysts like University of Houston Energy Fellow Ed HIrs say it’s not clear how many of those planned centers will actually see the light of day.

When the rush to build power-hungry data projects began two years…

We expect rapid electricity demand growth in Texas and the mid-Atlantic: EIA

July 31, 2025 —

forecast change in U.S. electricity sales to ultimate customers

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, July 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.

sales of electricity to ultimate customers in selected regions

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO), July…

U.S. proved reserves fell in 2023 from 2022 record: EIA

U.S. crude oil and natural gas proved reserves

Data source: U.S. Energy Information Administration, U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2023
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

SB 494

Passed the Senate and House, with the Senate concurring with House amendments,signed by the Governor May 20th, effective September 1st

____________________________

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

____________________________

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.

HB 2890

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

_________________________

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

SB 1759

Senator Brian Birdwell (Republican) is the author

Passed the Senate, passed the House as amended May 6th, signed by the Governor May 27th

_________________________

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

SB 2122

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)

____________________________

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

SB 1806

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

____________________________

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.

SB 1145

Passed the Senate March 13th, passed the House April 29th, sent to the Governor May 1st, signed by the Governor May 13th

____________________

BILLS FROM THIS SESSION BECOMING LAW

OIL AND GAS: Inactive wells

SB 1150

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)

____________________

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

HB 3159

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)

________________________

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…