On June 13, 2023, Governor Abbott signed into law House Bill 5066. According to Texas Oil & Gas Association (TXOGA) President Todd Staples, HB 5066 was implemented “to ensure that the Lone Star State remains the energy leader.” The bill, relating to transmission implementation, is designed to develop a reliability plan for the Permian Basin region.
Following the bill’s passage, TXOGA, along with the Permian Basin Petroleum Association (PBPA) and the Texas Alliance of Energy Producers (TAEP), participated in a workshop this month in Midland, organized by the Public Utility Commission (PUC). Interim TAEP President Karr Ingham praised the workshop saying, “We appreciate the Legislature and the Governor for recognizing this important issue and attacking it head-on with the passage of HB 5066. We look forward to working with the PUC and others to address this important challenge on behalf of our members and the oil and gas industry in Texas.”
The workshop incorporated an operator panel compromising representatives from ConocoPhillips, Pioneer Natural Resources, Chevron, Diamondback Energy, Endeavor Energy, and Targa Resources. During the panel discussion, the representatives emphasized the significance of implementing transmission systems to address the growing energy demand in Texas and nationwide. They also discussed industry initiatives aimed at enhancing electrification throughout the Permian Basin to guarantee a stable power supply for field operations.
Dean Foreman, Chief Economist of TXOGA, presented trending data to the PUC regarding the expansion and potential of the Permian Basin. The information emphasized by Foreman underscores the necessity for increased electrical transmission capabilities.
Industry experts say these workshops play a pivotal role in facilitating the successful implementation of critical legislation such as HB 5066. They are essential to ensuring that energy producers in Texas understand the advantages of the new law, thereby maintaining the Lone Star State’s position as the leading hub for energy production in the United States.
