.The Texas Energy Report

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.The Texas Energy Report

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“Ex-legislator tests lobbying revolving door law by repping big energy companies” — The Dallas Morning News points out that former District 9 state Rep. Chris Paddie is now a lobbyist representing Irving-based firms Vistra Corp. and TXU Energy, “which have pledged to pay him up to $622,000 to advance their interests this session” and Mr. Paddie “co-authored the very lobbying law he is now butting up against” — see the article via MSN

Some members of the Legislature say they’re tackling a critical problem by forming the Texas House Water Caucus — Bastrop District 17 Rep. Stan Gerges is a member as is District 48 Rep. Donna Howard — see the list of members at the press release here

The Settegast neighborhood of Houston (in the city’s northeast just off Loop 610) is the area with the lowest life expectancy in Harris County, according to the Houston Chronicle — lack of city services is a major factor — see the article here
 

Bill Proposing New Non-NatGas Power Tax Utilizes Formula In Bid for Property Tax Relief

January 25, 2023 — State Sen. Drew Springer‘s new SB 488 would create a first-ever tax on commercial non-natural gas generation of electricity that would be determined by a mathematical formula based on overall state natgas production, with revenues going to the Texas Education Agency to provide property tax relief.

In other words, the bill says “A tax is imposed on each” Texas electric generator “that generates electricity using an energy source other than natural gas,” although the bill also makes one reference to “natural gas or coal.”…
 

Sen. Springer’s Bill Draws Setbacks for Wind Turbine Generators

January 24, 2023 — District 30 state Sen. Drew Springer has a new bill that would create setback limits for wind turbines, giving jurisdiction to county and district courts for enforcement through lawsuit adjudication.

The Dallas-area Republican’s SB 154 calls for wind turbine generators to be placed at a minimum of 3,000 feet from the property lines of adjacent properties….
 

State Rep. Meza’s Bill Would Allow Tenants to End Leases During Utility Outages

January 22, 2023 — A bill filed by state Rep. Terry Meza (D-Irving) would allow those renting or leasing homes or apartments to end their written contracts because of long utility outages, even if the outages were not the fault of the property owner.

House Bill 1173 states that a resident who doesn’t “have an essential utility due to an outage caused directly or indirectly by severe weather conditions may terminate the tenant’s lease, vacate the dwelling, and avoid liability for future rent and any other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term.”…
 

The TER 4th Quarter 2022 Texas Energy Companies Earnings Roundup Is Underway

Baker Hughes

  • Record orders of $8.0 billion for the quarter, up 32% sequentially and up 20% year-over-year
  • Revenue of $5.9 billion for the quarter, up 10% sequentially and up 8% year-over-year
  • GAAP operating income of $663 million for the quarter, up $394 million sequentially and up 15% year-over-year
  • Adjusted operating income (a non-GAAP measure) of $692 million for the quarter, up 38% sequentially and up 21% year-over-year
  • Adjusted EBITDA* (a non-GAAP measure) of $947 million for the quarter, up 25% sequentially and up 12% year-over-year
  • GAAP earnings per share of $0.18 for the quarter which included $0.20 per share of adjusting items. Adjusted earnings per share (a non-GAAP measure) was $0.38.
  • Cash flows generated from operating activities were $898 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $657 million.

More at the press release click here…
 

Numbers Show Natural Gas Supply in Texas Held up During Winter Storm Elliott: RRC Press Release

January 17, 2023 — The RRC’s commitment to ensure the resilience of natural gas infrastructure during cold weather was tested last month during Winter Storm Elliott with sub-freezing temperatures that lasted several days during the Christmas weekend. The numbers are in and show that there was ample natural gas supply to help the state’s electricity supply chain and keep Texans safe.

The U.S. Energy Information Administration analysis below shows the Electric Reliability Council of Texas (ERCOT) energy mixes for electricity generation in the state for the past year. As the chart reflects, natural gas fired electric generation reached the highest peak for the entirety of 2022 on December 23 during Winter Storm Elliott, surpassing that of the peak days last summer….
 

Petroleum Products Prices Expected to Decline

By Alex Mills

The Energy Information Administration at the U.S. Department of Energy believes the price of petroleum products (crude oil, gasoline and diesel) will decline 5% to 10% this year from its previous predictions.

EIA’s forecast crude oil will average $77 per barrel in 2023, which is $11 less than its previous prediction of $86. Gasoline also was revised down from $3.51 to $3.32, and diesel at $4.20 down 16%. Natural gas is expected to average $4.90 per million British thermal units, which is a 9.8% drop from its previous estimate of $5.43.

West Texas Intermediate crude oil closed at $77 on the New York Mercantile Exchange on Wednesday. AAA said the national average for retail gasoline was $3.272 per gallon Wednesday….
 

Texas Oil and Gas Industry Anticipates Continued Growth in 2023

By Alex Mills

The oil and gas industry in Texas made a big recovery in 2022, and a majority of the executives surveyed by the Federal Reserve Bank of Dallas anticipate a good year in 2023.

“Activity in the oil and gas sector continued growing in fourth quarter 2022,” the agency said in a new release on Dec. 29. “The business activity index – the survey’s broadest measure of conditions facing Eleventh District energy firms – remained positive but fell to 20.2 in the fourth quarter from 46 in the third. This suggests the pace of expansion decelerated but remained solid as the business activity index stayed above the series average.”

The survey, conducted between Dec. 7-15 from 152 energy firms, finds 45% of respondents believe crude oil prices will average $80-$89 at the end of 2023 compared to 25% believing prices will average between $70-$79 and 15% saying $90-$99…..
 

New Report Shows Dispatchable Battery Storage and Renewable Energy Projects Are Boon to Texas Economy: Press Release

January 5, 2022 — Renewable energy and battery storage projects generate tens of billions of dollars in tax revenue and landowner payments, 60 percent of which benefits rural counties, according to a report released today by Conservative Texans for Energy Innovation (CTEI), the Advanced Power Alliance (APA) and the Texas Association of Business (TAB).  
 
Matt Welch, State Director of CTEI said, “Texas’ record growth is continuing across all energy sectors, especially utility-scale renewable energy and energy storage. This report confirms the tremendous economic impact clean energy projects continue to have across every region of Texas.”  Welch went on to add, “For the first time, dispatchable battery storage development and deployment has registered as a major contributor to the future of the Texas energy grid and the growth of this emerging technology has been exceptional.”
 
The report, titled “The Economic Impact of Renewable Energy and Energy Storage in Rural Texas,” was authored by Dr. Joshua Rhodes, Chief Technology Officer of IdeaSmiths LLC and a Research Scientist at The University of Texas at Austin. Among the findings in the report: 
 

Rep. Dean Aims to Protect O&G, Consumers With Bills

December 30, 2022 — Protecting the O&G industry and consumers are among the aims of two bills filed for the coming session, according to District 7 state Rep. Jay Dean.

The former Longview mayor said his HB 743 and HB 744 are to protect against the types of local bans on natural gas, propane, or gas-powered equipment” that have been seen in the past few years….
 

State Sen. Hall Files Bill to Create State Electric Grid Security Commission

December 29, 2022 — District 2 Texas state Senator Bob Hall says a bill he has filed for the upcoming session of the State Legislature will likely result in a more resilient ERCOT grid.

One of the keys for grid resilience is efficiency and reliability, Hall said recently in explaining his SB 330.

Hall added that he’s been advocating for a stronger grid for a long time, working for measures to remove vulnerability to both man-made such as cyberattacks and electromagnetic pulse attacks and natural threats such as the recent Winter Storm Elliott…..
 

ERCOT Grid Performs During Winter Storm, But Challenges Remain for Christmas Weekend

December 24, 2022 — A nationwide cold snap moved through Texas Thursday, taxing the grid that makes up most of the state along with utilities and retail provider systems.

The Electric Reliability Council of Texas (ERCOT) grid held up through Winter Storm Elliott Thursday and Friday but the system faces challenges getting into Christmas Eve even as local, rather than statewide, power outages sent crews from CenterPoint, Oncor and other providers scrambling to bring tens of thousands back online…..