The energy transition is approaching a crossroads, and Texas is a unique case reflecting tough choices. Coming to the one-year mark of Russia’s invasion of Ukraine, the energy world has had several shifts of note.
The globalization of natural gas
The rethinking of the energy mix beyond “pure” renewables
The realization by capital markets of the perils of energy insecurity
This crossroads is partly owing to the invasion. But secondly, the experience to date of changing energy mix proportions, given renewables’ dynamic and resulting grid issues, is a factor. It is difficult to predict the future pace of renewables development with the new Inflation Reduction Act’s green policies. Elevated capital costs, inflation and shifting supply chains are in the mix as well.
Texas is a microcosm of the energy mix, though heavily weighted toward producing oil and gas. While it produces oil and gas, and increasingly consumes more renewables on the Texas grid, renewables are complementing their evolution. Challenges are appearing however. The lands of Texas reflect them. Renewables are competing for land that has been earmarked for certain uses in the past. Priorities are shifting though as differing sustainability themes emerge.
Texas is a highly capitalistic and competitive place, with spirited legacies and expansive lands. If it’s going to get worked out, it will happen here. While attempting to preserve its beauty and character as thousands come daily and many businesses relocate, further commercializing and industrializing the State, the battle could get spirited.
This interview with Chad Willis, the CEO of the Texas Agricultural Land Trust, highlights some of the issues emerging with Texas lands given economic growth and changes to the energy mix. This is one element of a story crafted (not yet published) of the changes occurring in Texas, a state of mind attracting all comers that still personifies the American dream.
Interview of Chad Ellis, CEO of Texas Agricultural Land Trust, with Jennifer Warren, talking about changes afoot in Texas.
Part of my description in the story of Texas’ energy evolution. We’re wind-swept. Enjoy “There Will Be Time” by Mumford and Sons, with Baaba Maal, the Senegalese singer