While Texas is known for generating the most energy of any state because of its booming oil industry, it is also a leader in generating solar energy.
As Texas continues to make advancements in this field, one oil company, ExxonMobil, has made a ground-breaking agreement that will see them use solar power to draw oil from the Permian Basin in the not-so-distant future.
The biggest renewable deal ever signed by an oil company, ExxonMobil is showing that these companies can do their part in the global warming crisis, while still providing much needed oil to those throughout the world.
In this blog, we will look at the history of solar power in the oil business, where the state of Texas rates in terms of solar power production and Exxon’s plan of action with this agreement.
Background & history
ExxonMobil has always taken a special interest in solar power, beginning research in the field over 50 years ago.
During the early 1960s, when ExxonMobil was still known as the Standard Oil Company of New Jersey, there was concern over a surge in oil usage, and they began looking for oil alternatives.
This search led them to solar photovoltaic technology, which converts sunlight into electricity. During this time other oil companies began doing research and the industry began to expand.
Exxon, its subsidiaries, and other oil companies continued to expand research throughout the 1960s and 70s, and although they hit several roadblocks in producing cost-effective solar power, President Jimmy Carter continued to put large sums of money into this research and development.
Unfortunately, the finding of new oil fields across the globe during the tail end of this period put a decrease in the need for solar power and subsidies given by the Carter administration were moved to other areas when Ronald Reagan took office.
Since this time, solar companies have continued to operate and have made incredible advancements in the field, but they were not associated with the oil business like they once were.
A renewed interest
While the oil business turned away from solar energy for much of the last 30 years, they have come back to it in a big way since the ExxonMobil agreement was made in 2018.
ExxonMobil has begun purchasing wind and solar power in West Texas as part of a 12-year agreement with the Danish energy company Orsted.
The idea will be to use cheap, clean electricity to power ExxonMobil’s rapidly expanding operations in the Permian Basin, which expects to reach 1 million oil-equivalent barrels per day as early as 2024, an 80% increase over earlier forecasts.
Orsted and ExxonMobil are expected to buy 500 megawatts of wind and solar power in the Permian Basin, making it the largest renewable power contract ever signed by an oil company.
Already a leader in solar power
While this is a great win for the oil business in terms of the impact their oil production will have on the environment, the state has already become a leading force in the solar power market.
Texas has the second most solar generation, only behind California, with much of the solar power coming from power plants. This deal will increase those numbers and hopefully spark a trend in oil companies that choose to use solar power for their oil production.
At Texas Contractors Equipment Inc, we are proud of our state’s commitment to solar power and are standing by to provide any ground engaging tools and attachments that are needed for upcoming solar power projects. Should you need these tools for your solar power, or other industrial needs, we ask that you think of our professional and experienced team.
We invite you to call us at 713.776.1212 today for all your equipment needs from top brands such as ESCO®. We’ll do everything in our power to get your tools to you on time and at a fair price!
Leave a Reply