Texas is the second most populous state in the nation with more than 23 million people, many of whom are busy driving cars, working to support their families and heating and cooling their homes. As the population of Texas grows, the people of this great state are using more energy than ever before, facing higher energy costs and looking for cheaper solutions. The fact is – whether measured at the pump or on your electric bill – the energy that drives our lives will remain expensive long into the future.
High gas prices are here to stay – regardless of what Congress does – at least for the foreseeable future. Why are prices so high? Unlike the 1970’s when high oil prices were driven by a global supply shortage, our current oil prices are driven by significant increases in demand—specifically, in India and China. In fact, some analysts are predicting that oil will cost $200 per barrel by the end of the year. The price of natural gas is headed in the same direction. Since Texas generates more than 45 percent of its electricity from natural gas, we will continue to see higher electric prices at home and at work, along with higher gas prices at the pump. Even if these price increases are caused by forces beyond supply and demand, it makes little difference to the average family in the car or in the checkbook. Couple these issues with the fact that the climate change debate puts pressure on carbon-emitting sources, and any way you look at it, energy prices are squeezing our families and our economy.
Our state and national economies need reliable energy to keep growing. That means adding necessary infrastructure, although costly. Texans understand this as well as anyone, because our state has added more than 34,000 megawatts of new electric generation since 1996 and invested almost $4 billion in new or upgraded transmission lines since 1999. Continuing to maintain and upgrade this infrastructure alone will cost billions, not to mention changes that may be necessary for bridges, highways and filling stations to bring our transportation system into the 21st century. There is some good news on the horizon, however, even in the midst of almost daily dire predictions.
We have resources here at home – oil and natural gas across the country and offshore, along with coal and uranium – and many promising renewable energy technologies at various stages of development to meet the challenges we face. As we face the prospect of continued demand growth and high energy prices, we must also be prepared for high-cost investments in energy infrastructure, clean energy research and development, and more baseload power production. Before we continue down this path, we need to have an open and thorough conversation about our choices in Texas to both mitigate prices and ensure robust and reliable supply.
Texans should have the opportunity to understand the full range of options, consider the tradeoffs and assess the impact of policy decisions by Austin or Washington before moving forward. Groups like Power Across Texas, a recently created information forum to help Texans plan a clean, affordable and abundant energy future, understand that no one technology or state or federal policy is going to solve our energy problems. By making the most informed decisions possible, we can successfully adjust to the new realities of the energy market and prepare for the future.
We all need to be better informed about some of the energy economy options before us. Carbon taxes or other plans to control greenhouse gas emissions, for example, are frequently suggested as policy solutions. Carbon control mechanisms may be enacted in the future. That means Texans should start studying now what these plans might mean for our economy, our workforce and our pocket books.
Power Across Texas and others are committed to discussing all of our options for a balanced energy portfolio and providing objective information in order to have an informed debate about our future energy policies. There are no obvious answers when it comes to energy policy. Only by examining all alternatives and building a flexible consensus can we plan an energy future for all Texans that includes clean, affordable and abundant energy. To learn more about Power Across Texas and Texas’ energy options go to poweracrosstexas.org.