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Texas is very rich in natural gas. In fact, back in 2019, it accounted for almost 24% of the US natural gas production. It was also successful in reducing flaring percentage, recording only 2% that same year.
But historically, Texas had a limited natural gas market and limited ability to transport supply. gas. Thanks to industry innovations, it can now sell more of the commodity.
The new gas pipeline infrastructures have allowed Texas to transport gas to the coast, which further reduced gas flaring.
There is no doubt that these steps benefited Texas greatly, but the recent calamity in the state showed that it still needs more reliable energy sources.
Management messages read: "What if we could grow this market by partnering with Mexico to export LNG to their Pacific coast? With the Keystone XL pipeline shutdown, we need access to heavy oil for our refineries. Can we work with Mexico to supply this crude in exchange for access to their coast for export? What if we could make would-be flared gas to generate electricity? With additional pipeline infrastructure, could we have a dedicated closed loop system for generating electricity in some of our most populated areas? Wouldn't adding reliable power generation benefit our growing populations, and adding pipelines reduce the overall impact of cyber attacks?"
Of course, Texas can and will overcome ongoing challenges. But it needs confidence from the governments, especially when making decisions that would provide a stable and reliable foundation.
On a different note, the Colonial Pipeline, an important source of gasoline and diesel for New York and the rest of the East Coast, has begun to resume fuel supplies. However, it remains unclear when shipments will return to normal, as it will take quite a long time to go back to the way things were.
Back on May 7, gas stations from Florida to Virginia dried up after Colonial was forced to shut down systems. Three out of four gas stations in Washington, DC were also out of fuel, making cars line up just to get gas.
This disruption shows how vulnerable the US is in terms of energy infrastructure. The issue with Colonial is a latest example of mission-critical infrastructure being targeted by ransomware.
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