Deep Dive: Look At The Amount Of Money Forecast To Electrify The Permian -- September 26, 2024

Locator: 48406PERMIAN.

This story can be found everywhere. The trick is to find a source with no paywall. Here's one.

From the linked article:

HOUSTON (Reuters) - A Texas commission unanimously on Thursday approved the Permian Basin Reliability Plan, which is designed to expand power grid infrastructure in the United States' largest oilfield to accommodate rapidly growing demand from the oil and gas industry.

The Public Utility Commission of Texas (PUCT) directed the Electric Reliability Council of Texas (ERCOT) to compile the plan in December last year, two months after ConocoPhillips, ExxonMobil, Pioneer Natural Resources, Diamondback, Chevron and Devon Energy submitted a report with financial information company S&P Global warning the commission of a significant increase in electric load demand in the Permian basin in the coming years.

Electrifying oilfield operations can reduce emissions and eliminate pollution and noise associated with diesel-powered rigs and fracking equipment.

The Texas power grid has come under significant strain, with the state home to some of the most energy-intensive industries, including data centers, cryptocurrency mining and oilfield operations.

Surging population growth and sweltering heat have also increased stress on Texas' vulnerable electrical grid, last month driving demand to a record high.

ERCOT estimates that the required transmission upgrades to meet the jump in demand could range between $12.95 billion and $15.32 billion.

Transmission upgrades only? What about new power production plants? I don't know, just thinking out loud.

Nuclear? Link here.

Just for electrical upgrades. Quick! Name the electric utility that will be tapped to provide the infrastructure. 

Link here.

Maps:

Oncor is a subsidiary of SRE.

Ticker: SRE.

 

 
SRE was the second or third stock I ever bought once I started investing outside of mutual funds. At the time it was known by a different name and subsequently bought Oncor. SRE has become one of my biggest holdings. For the longest time, I used DRIPs for automatic SRE reinvestments. Under $60/share I kept adding to my position. Now, it "depends" whether or not I add to my SRE position. It depends on Sophia's input. It belongs to her now.

Dividend history:

GAP