Power & Renewables

Electrifying the Permian

Decarbonize or destabilize? Emissions reduction targets and cryptocurrency could double power demand and threaten the grid in West Texas by 2040

byEnverus

CALGARY, Alberta (April 30, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, has released a report that quantifies the potential electrification of oil and gas assets in the Permian Basin based on operators’ emissions reduction targets and its impact on grid demand, transmission flows and the generation required to serve this growing load.

“We see Far West Texas power demand more than doubling by 2040 due to electrification trends and cryptocurrency mining growth,” said Riley Prescott, senior associate at EIR. “We believe the Far West zone in ERCOT will see enough load growth to support significantly more renewable development without curtailments.”

“Within the next few years, the Far West will need a large power generation build-out to meet the forecast load growth. Without it, we expect power prices in the area will rise significantly. We believe that the low prices seen in the Far West could be disrupted by new load drivers including electrification of oil and gas assets and cryptocurrency mining growth,” Prescot said.

Key takeaways from the report:

  • Far West Texas power demand will more than double by 2040 because of electrification trends and cryptocurrency mining growth. With this increased load comes a need for additional generation buildout, otherwise power prices will rise significantly.
  • Without an increase in levels of queued generation in ERCOT’s Far West load zone, EIR expects net exports to continue to decrease. This presents an opportunity for generation within the region to expand capacity to meet peak load and export to East Texas.
  • Natural gas combustion, specifically compression, is the most practical emission source to electrify by connecting to the grid, as these emissions mostly come from stationary sites with long expected lives.
  • A fundamental shift began in 2022 as load growth increased relative to wellhead gas production. This was due to early electrification efforts in the Permian Basin and a migration of cryptocurrency mining load to Texas following China’s crackdown on miners in mid-2021.

EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research, Enverus Foundations ® Power & Renewables and Enverus Emissions & Regulatory Analytics.

You must be an Enverus Intelligence® subscriber to access this report.

About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, generative AI and energy-dedicated SaaS company, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

Picture of Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Africa emerges as center of global upstream acreage rush
Newsroom
Operators
ByJon Haubert

Enverus Intelligence® Research finds Africa captured about half of new upstream country entries globally in 1H25–1H26, led by expanding activity in West Africa and renewed licensing interest in North Africa.

Global drilling availability narrows as demand rises
Newsroom
Oilfield Services
ByJon Haubert

Enverus Intelligence® Research identifies the global regions best positioned for rig deployment and the geopolitical and operational factors shaping future growth. Discover where global land drilling opportunities are emerging as international demand rises and market access becomes increasingly constrained.

Enverus unveils top U.S. drillers of 2026
Newsroom
Oilfield Services
ByJon Haubert

Enverus releases its 2026 rankings of top U.S. land drilling contractors and customers, using the latest drilling data to benchmark footage, pace, well design and rig activity.

Who the FERC is ready Grading grid readiness for large loads
Newsroom
Financial Services, Power & Renewables
ByJon Haubert

Enverus Intelligence® Research evaluates U.S. grid readiness for large data center loads, finding SPP ahead on regulatory certainty while major PJM and MISO project pipelines remain exposed to timing and cost risks.

Behind-the-meter generation forecast Skipping the queue
Newsroom
Financial Services, Power & Renewables
ByJon Haubert

Enverus Intelligence® Research forecasts 25.5 GW of U.S. industrial demand will rely on behind-the-meter generation through 2030, with data centers driving 88% of demand and speed-to-power shaping technology choices.

2Q26 U.S. upstream M&A slows to $9.1 billion amid crude volatility
Newsroom
Financial Services, Operators
ByJon Haubert

Enverus Intelligence® Research examines the 2Q26 slowdown in U.S. upstream M&A and the factors that could drive stronger deal activity later in 2026.

Brent holds at $100 as global supply risks persist
Newsroom
Financial Services, Trading & Risk
ByJon Haubert

Enverus Intelligence® Research examines the 2Q26 slowdown in U.S. upstream M&A and the factors that could drive stronger deal activity later in 2026.

Race to resiliency Tax-credit phaseout expected to push renewable PPA prices higher
Newsroom
Financial Services, Power & Renewables
ByJon Haubert

Enverus Intelligence® Research identifies 759 planned U.S. wind and solar projects that may require higher PPA prices to remain economic as federal clean electricity tax credits phase out.

New Mexico geothermal lease sale resets federal acreage pricing
Newsroom
Financial Services, Midstream
ByJon Haubert

Enverus Intelligence® Research finds New Mexico’s BLM geothermal lease sale averaged $107/acre and set multiple records, resetting pricing expectations ahead of Idaho’s November auction.

Find Out How Enverus Can Help Your Business
Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Sign up for our Blog

Ready to Subscribe?

Ready to Get Started?