ODESSA, Texas (AP) — Big data centers that power the artificial intelligence industry demand an abundance of energy.
West Texas — known for producing 40% of the nation’s crude oil — also has an extraordinary amount of natural gas that could power those data centers. But the region lacks adequate infrastructure to convert the gas, a byproduct of pumping oil, into electricity and transmit it to the growing industry, experts said.
“Meeting this unprecedented demand takes more than production alone,” said Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, a trade group. “It requires a strong network of pipelines and infrastructure to move natural gas efficiently and ensure reliable power for end users. In Texas, expanding this network has never been more important to keep pace with growth.”
The lack of infrastructure puts the Permian Basin region at a major disadvantage compared to other oil and gas producing regions, said Jason Jennaro, CEO of FrontierGen, a business analytics company that helps industrial developers secure land.
Oil and gas companies in West Texas will need to compete with those in the Eagle Ford and Haynesville shales, two other major oil basins in southern and eastern Texas, for customers on the hunt for remarkable amounts of natural gas.
