Natural Gas Generated Electricity
Texas relies heavily on natural gas powered energy generation plants. Texas is not unusual in this way as more and more states are using natural gas in the production of electricity. Coal fired power plants continue to be the major fuel source for electric power but natural gas is forecasted to quickly outpace Coal Fired Power is the new number one power fuel source. East Texas has seen natural gas drilling outnumber oil well drilling by 10 to 1. This number is likely to continue to increase and revenue and profit from new and old natural gas drilling companies and exploration companies is expected to do quite well during this time. Actually, it would be smart to put some of your stock portfolio in some of these companies. Energy.gov expects about a 90 percent of future power plants to be fueled by natural gas in the next 20 years. Since Texas is the natural gas king right now you can expect more of these plants in Texas then anywhere else. You will of course see a couple of nuclear power plants as well but these are approved and built on a much slower pace. We will also see distributed power plants being built that are primarily natural gas. These plants will help in providing cheap power to towns that do not have the congestion problems seen in Houston and Dallas. These mini-power plants will be close enough to the city needing power to offset congestion issues they would otherwise face.
Expected Long Term Outlook For Texas Electric Prices
Inspite of the fact that many natural gas power plants will be built in the next 20 years, the government believes electricity rates will continue to rise as the demand is much greater then the capacity able to be built. New transmission infrastructure and circuit technology is being created to make transmission and distribution more efficient but we will still experience some growing pains unless we are supplemented with the necessary nuclear power plants we need to keep the price of electricity down over the next 5 – 10 years.
Learn more about Texas Electricity