Permian Basin's Power Demand Soars Amidst Drilling Expansion
West Texas oil producers are facing an electricity demand crisis as their operations grow. Their power needs are outstripping supply, and it's not just about data centers.
Diamondback Energy Inc.'s CEO Kaes Van't Hof said his company's electricity consumption has doubled every year for years. He predicts it will double again over the next decade, even if production remains flat.
Executives from Texas's grid operator and state regulator are warning of power outages by next summer due to high demand. Pipeline owners and oilfield service providers are racing to expand their offerings to serve data centers.
The Permian Basin, where Diamondback operates, is the US's most productive shale basin. Despite the growth in gas production as a byproduct of oil extraction, electricity demand remains a major issue for producers.