Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
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Glenn Hegar
Texas Comptroller of Public Accounts
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Texas Comptroller Energy Tour: Statewide Overview

Statewide Snapshot | Print Snapshot (PDF)


The energy industry in Texas has long been an important contributor to the state’s — and the nation’s — economy. According to the 2023 U.S. Energy and Employment Report (PDF), in 2022 Texas employed 936,477 energy workers statewide: 64,570 in electric power generation; 302,744 in fuels; 203,777 in transmission, distribution and storage; 164,470 in energy efficiency; and 200,916 in motor vehicles. In total, Texas accounts for 11.5 percent of all U.S. energy jobs.[1]

In addition to its significant economic contribution, Texas’ energy industry is the undisputed national leader in energy production. According to the U.S. Energy Information Administration (EIA):

  • Texas is the top oil and gas state in the U.S., producing 42 percent of crude oil and 27 percent of marketed natural gas.[2]
  • Texas has 32 petroleum refineries (the most of any state), which can process more than 5.9 million barrels of crude oil per day (32 percent of U.S. refining capacity).
  • Texas produces about 26 percent of all U.S. wind-powered electricity generation, the most of any state.
  • Texas produces more electricity than any other state, generating more than 12 percent of the nation’s total.
  • Texas leads the nation in energy consumption across all sectors and is the largest energy-consuming state in the nation.

Maintaining Texas’ strength in the energy industry will require adaptability and facing key issues head-on: depletion of natural resources, grid protection and reliability, increased environmental regulation and emerging technologies. Despite challenges, Texas must ensure the state’s energy systems remain accessible, reliable, safe and affordable.


In 2021, Texas provided nearly one-fourth of U.S. domestic produced energy.[3] Texas leads the country in both energy production and consumption and produces and consumes more than double the amount of energy in both respective categories than the next closest state, Pennsylvania. While Texas leads in energy consumption, the state also has the largest amount of surplus energy produced after consumption (measured in British thermal units (Btu ), a measurement of content as energy) (Exhibit 1). Surplus energy sources like natural gas may be placed in underground storage, while excess energy from solar can be sold to energy providers.[4]

Exhibit 1
Top 5 States for Energy Consumption Less Production (Trillion Btu), 2021
Top 5 States for Energy Consumption Less Production (Trillion Btu), 2021
State Total Production Total Consumption Production Less Consumption
Texas 23,843.8 14,358.7 9,485.1
Pennsylvania 10,150.9 3,633.6 6,517.2
Wyoming 6,032.0 504.1 5,527.8
New Mexico 5,504.9 739.0 4,766.0
West Virginia 5,496.7 853.1 4,643.6

Source: U.S. Energy Information Administration

Texas leads the nation in energy consumption across all end-use sectors: residential, commercial, industrial and transportation. More than half of Texas energy consumption comes from industrial end-use, according to the EIA (Exhibit 2). Industrial end-use includes large refineries and petrochemical plants and accounts for 23 percent of the nation's total industrial sector energy use.

Exhibit 2
Texas Energy Consumption by End-Use Sector, 2021
  • Commercial Sector: 11.7%
  • Residential Sector: 12.2%
  • Transportation Sector: 22.2%
  • Industrial Sector: 53.9%

Source: U.S. Energy Information Administration

Natural gas is the leading energy source by consumption in Texas with over 4,500 Btu used in 2021, almost double that of the next most consumed energy source, hydrocarbon gas liquid (HGL) (Exhibit 3).[5]

Exhibit 3
Texas Consumption Estimates by Energy Type (Trillion Btu), 2021 (in Btu)
View consumption data.
Texas Consumption Estimates by Energy Type (Trillion Btu), 2021 (in Btu)
Energy Type Consumption in Btu
Natural Gas 4,736.9
HGL 2,572.8
Motor Gasoline excl. Ethanol 1,553.9
Distillate Fuel Oil 1,071.4
Coal 968.4
Nuclear Electric Power 420.0
Jet Fuel 250.5
Residual Fuel 177.2
Renewables 1,293.1

Source: U.S. Energy Information Administration

  • *HGL is hydrocarbons that show as a gas in atmospheric pressure or as a liquid in higher pressure.
  • **Distillate Fuel Oil is a general classification for diesel fuels and fuel oils including those used on automobile engines and machinery.
  • *** Residual Fuel is a general classification for heavier oils such as those that remain after other oils are distilled away in the refinery operation process.
  • ****Renewables include wind, solar, biomass and hydroelectric energy.

Energy Resources and Facilities

Texas contains a vast number of natural resources and relies on all of them to provide needed energy for the state’s growing population. The state’s energy mix includes both fossil fuels and renewable energy sources.

Natural Gas

Texas’ natural gas infrastructure includes an extensive network of storage facilities and pipelines. The state contains almost a quarter of U.S. proved dry natural gas reserves. Nearly 30 of the nation's 100 largest natural gas fields are located, in whole or in part, in Texas. Natural gas in Texas has a maximum energy generation capacity of 69,890 megawatts (MW).[6] In 2021, the state accounted for 28 percent of the nation's natural gas production.[7]


Coal is an abundant fuel source that is relatively inexpensive to produce and convert to energy. In recent years, however, the use of coal as a power source for electricity generation has declined, leading to the retirement of several coal-burning power plants and coal mines in the state. As of 2022, Texas coal-fired power plants have an installed capacity of nearly 20,000 MW of electricity.


For the past 17 years, Texas has led the U.S. in wind energy. In 2022, Texas turbines produced 40,556 MW — more than a quarter of all wind-sourced electricity in the U.S.[8] Wind power surpassed the state’s nuclear generation for the first time in 2014 and exceeded coal-fired generation for the first time in 2020.[9] In 2011, Texas became the first state to reach 10,000 MW of wind generating capacity and remained the only state with that capacity until 2020.[10]


With abundant sunlight throughout the year, Texas has substantial solar power potential. The number of solar installations grew rapidly in the past few years as the cumulative capacity of operational solar resources totaled 14,818 MW in 2022, compared with just 72 MW in 2012.[11] As of Q1 2023, the value of total solar investments in Texas is nearly $22 billion, bringing more than 10,000 industry-related jobs to the state.[12]


Nuclear energy provides a significant portion of the state’s electric power generation. Texas has two nuclear power plants in operation: the South Texas Project near Bay City and Comanche Peak near Glen Rose. Each plant has two reactors. Combined, these plants have an installed capacity of 5,000 MW of electricity.


Despite having 26 hydroelectric power plants, Texas’ commercially scalable hydroelectric power generation is limited.[13] In 2022, hydroelectric power plants contributed 344 MW, or 0.1 percent of the state’s electricity generation.[14]


Biomass comes mainly from wood or wood-derived fuels. Although not yet a large part of Texas’ energy portfolio, biomass has the potential to grow in the future given the large agricultural and forestry industries in the state. The EIA lists 16 biomass power plants in Texas with a combined capacity of more than 376 MW.[15] In 2022, biomass contributed 0.1 percent of the state’s electricity generation.[16]

Fuel Mix

With its growing population, Texas requires a diverse energy portfolio to continue meeting demand. Energy diversification is crucial because it provides several energy sources to rely on, rather than depending on a single source, which promotes economic growth and independence.[17]

In 2022, 42.6 percent and 16.6 percent of Texas’ energy was generated by natural gas-fired and coal-fired power plants, respectively. Wind power generated about 25 percent, and the state’s two nuclear power plants generated 9.7 percent. Solar, hydroelectric and biomass sources provided most of the remainder.[19]

During the past decade, Texas’ fuel mix has changed considerably as renewables have proliferated and more transmission lines bring electricity from remote wind and solar farms to urban market centers. Solar in particular has experienced rapid growth in recent years due to decreased cost and advancements in generating capacity. As coal-fired plants have closed, many have been converted to natural gas plants (Exhibit 4).[19]

Exhibit 4
Texas Net Generation by Source, Annual Total Electric Power Industry, GW Hours

View generation data.
Texas Net Generation by Source, Annual Total Electric Power Industry, GW Hours
YEAR Coal Natural Gas Nuclear Solar Thermal and Photovoltaic Wind
2012 138.1 213.9 38.4 0.1 32.2
2013 149.4 203.8 38.3 0.2 35.9
2014 148.2 204.7 39.3 0.3 40.0
2015 121.6 237.7 39.4 0.4 44.8
2016 121.2 226.0 42.1 0.7 57.5
2017 134.6 204.5 38.6 2.2 67.1
2018 111.7 239.7 41.2 3.2 75.7
2019 91.8 255.6 41.3 4.4 83.6
2020 78.8 246.6 41.4 8.5 92.4
2021 88.8 233.1 40.2 14.9 99.5

Source: U.S. Energy Information Administration

Economic Impact

The energy industry is a major economic driver in Texas and supports thousands of direct and indirect jobs in various fields. Mining, quarrying, and oil and gas extraction focus on fuel creation, while utilities including natural gas, fossil fuel, wind, nuclear, solar and hydroelectric focus on power generation. In total, both industries account for an estimated 244,000 jobs in Texas and an average annual wage of $145,068. (Exhibit 5). [20]

Exhibit 5
Employment and Average Wages of Texas Energy Industries
Employment and Average Wages of Texas Energy Industries
Industry Employment Average Annual Wages per Worker
Mining and Oil and Gas Extraction Activities
Crude Petroleum Extraction 48,397 $234,200
Natural Gas Extraction 11,723 $179,227
Coal Mining 1,302 $119,482
Support Activities for Mining 125,847 $111,876
Electric Power Generation Utilities
Hydroelectric Power Generation 1,077 $173,424
Fossil Fuel Electric Power Generation 6,059 $125,570
Nuclear Electric Power Generation 1,694 $175,140
Solar Electric Power Generation 1,572 $109,943
Wind Electric Power Generation 3,773 $110,002
Geothermal Electric Power Generation 3 $139,605
Biomass Electric Power Generation 64 $147,666
Other Electric Power Generation 396 $141,199
Electric Power Transmission, Control and Distribution Utilities
Electric Bulk Power Transmission and Control 2,780 $139,418
Electric Power Distribution 30,614 $119,237
Natural Gas Distribution 8,490 $150,034

Source: JobsEQ

Workforce training in these industries is key to the continued success of Texas’ energy economy. Many occupations in the utilities sector are fast growth occupations and vital to Texas’ workforce. The Texas Workforce Commission’s (TWC) Report on Texas Growth Occupations listed the following occupations in the mining, quarrying, and oil and gas extraction industries projected to add the most jobs from 2018 to 2028:

  • Bus and truck mechanics and diesel engine specialists are anticipated to grow by 21.9 percent.
  • Oil and gas derrick operators: 20.6 percent.
  • Oil and gas rotary drill operators: 20.3 percent.
  • Service unit operators: 19.8 percent.
  • Pump operators: 19.7 percent.

Technological advances have changed the utilities industry’s need for a more skilled workforce. Utilities occupations projected to grow the fastest from 2018 to 2028 include the following:

  • Wind turbine service technicians are anticipated to grow by 32.5 percent.
  • Financial managers: 23.3 percent.
  • Market research analysts and marketing specialists: 22.7 percent.
  • Plumbers, pipefitters and steamfitters: 17.1 percent.
  • Oil, gas and mining service unit operators: 15.3 percent.[21]


Most of Texas is on a power grid managed by the Electric Reliability Council of Texas (ERCOT). Texas is the only one of the contiguous 48 states with its own electricity grid, one of the three main grids in the U.S.: the Eastern Interconnection, Western Interconnection and Texas Interconnection. The Texas Interconnection covers 214 of the 254 Texas counties. As the independent system operator for the Texas grid, ERCOT connects more than 52,700 miles of transmission lines and more than 1,100 generation units, providing electricity to more than 26 million customers.[22]

ERCOT’s primary responsibilities include maintaining power reliability, ensuring open access to transmission lines and facilitating competitive electricity markets. ERCOT is overseen by the Public Utility Commission of Texas, which also enforces compliance with the state’s utility laws and regulates electric utility rates.

Electrical Distribution Transformers Shortage

A shortage of electrical distribution transformers has caused electric grids across the country to pause, or in some cases cancel, grid expansion and modernization projects. As wait times for transformers have increased, so have associated costs. Costs for some electric transformers have increased by more than 400 percent since 2020,[23] prompting the federal government to explore alternate methods to boost domestic production of transformers.[24]


Workforce training is essential to meet the demands of an ever-growing and changing energy industry. To prosper in the future, Texas must continue to prioritize training in fields that support its energy industry.

The stability and security of the electric grid also is critical to sustaining Texas’ population growth. In July 2023, the Texas Division of Emergency Management (TDEM) received $60.6 million in federal funds to assist with utilities and infrastructure related to the electric grid.[25]

TDEM will use the funding to hire skilled workers to shore up grid resilience, respond to and repair storm damage, and improve the resiliency of critical infrastructure, among other purposes.

Texas’ economy depends on affordable, reliable and environmentally sound supplies of electricity fuels. Remaining a leader in the energy economy hinges on the state’s ability to manage an energy sector that is constantly changing, requiring thoughtful planning and identification of policy solutions to address future energy challenges.

Links are correct at the time of publication. The Comptroller's office is not responsible for external websites.


  1. U.S. Department of Energy, United States Energy and Employment Report, Energy Employment by State: 2023 (PDF), (Last visited Aug. 9, 2023.)
  2. U.S. Energy Information Administration, “Texas State Profile and Energy Estimates,” (Last visited Aug. 9, 2023.)
  3. U.S. Energy Information Administration, State Energy Data System, Primary energy production – total energy consumption comparison (Last visited Aug. 21, 2023.)
  4. U.S. Energy Information Administration, “Texas State Profile and Energy Estimates, Profile Analysis,” (Last visited Aug. 10, 2023.); and Solar United Neighbors, “Earning bill credit for excess solar generation in Texas,” (Last visited Aug. 10, 2023.)
  5. U.S. Energy Information Administration, “Texas State Profile and Energy Estimates,” (Last visited Aug. 9, 2023.)
  6. Electric Reliability Council of Texas, ”Fuel Mix,” (Last visited Aug. 21, 2023.)
  7. U.S. Energy Information Administration, State Energy Data System, Table P2, Energy Production Estimates in Trillion Btu, 2021. (Last visited Aug. 21, 2023.)
  8. U.S. Energy Information Administration, Texas State Profile and Energy Estimates, Quick Facts, updated June 15, 2023; and Office of Energy Efficiency and Renewable Energy.
  9. U.S. Energy Information Administration, Texas State Profile and Energy Estimates, Quick Facts, updated June 15, 2023.
  10. U.S. Energy Information Administration, Electricity, Historical State Data, Existing Nameplate and Net Summer Capacity by Energy Source, Producer Type and State (EIA-860), 1990-2021.
  11. Electric Reliability Council of Texas, Capacity Changes by Fuel Type Charts, June 2023.
  12. Solar Energy Industries Association, “Texas Solar” (Last visited Aug. 2, 2023.)
  13. National Hydropower Association, “Texas: Existing Hydropower,” (Last visited Aug. 9, 2023.)
  14. Electric Reliability Council of Texas, Fuel Mix Report 2022 (Last visited Aug. 9, 2023.)
  15. U.S. Energy Information Administration, “U.S. Energy Atlas,” (Last visited Aug. 9, 2023.)
  16. Electric Reliability Council of Texas, Fuel Mix Report 2022, (Last visited Aug. 9, 2023.)
  17. ShareAmerica. “When it comes to energy, countries should mix it up.” May 2015. (Last visited Aug. 3, 2023.)
  18. Electric Reliability Council of Texas, “Fact Sheet,” (PDF) (Last visited Aug. 8, 2023.)
  19. CPS Energy, 2022 Power Generation Plan Results Discussion (PDF) (November 2022), (Last visited Aug. 2, 2023); and U.S. Energy Information Administration, EIA-923 Power Plant Operations Report, Net Generation by State by Type of Producers by Energy Source, 1990-2021 (Last visited Aug. 21, 2023.)
  20. Chmura JobsEQ from the Quarterly Census of Employment and Wages, provided by the Bureau of Labor Statistics; and Texas Comptroller of Public Accounts Industry Data 2022.
  21. Texas Workforce Commission, Report on Texas Growth Occupations 2021. (PDF)
  22. Electric Reliability Council of Texas, “Fact Sheet,” (PDF) (August 2023), (Last visited Aug. 9, 2023).
  23. Alex Strong, National Association of Home Builders, “NAHB, Other Trade Groups Urge Congress to Act on Transformer Shortages,” National Association of Home Builders Blog, Dec. 8, 2022. (Last visited Aug. 21, 2023.)
  24. The Conference Board, “An Electric Transformer Shortage Is Impeding Grid Expansion, Transformation,” (June 22, 2023), (Last visited Aug. 3, 2023.)
  25. Texas Tribune, “Texas gets $60 million in federal funds to strengthen power grid against extreme weather.” (Last visited Aug. 8, 2023.)