A plan to get more electricity to West Texas may come undone

Texas Oil Industry Pushes for Massive Transmission Project Amid Growing Opposition

If Texas wants to maintain its position as a leader in oil production, the Permian Basin urgently needs more electricity. This warning from influential oil industry trade groups has culminated in a massive $13 billion transmission infrastructure project that now faces mounting opposition from landowners and environmental groups.

The Permian Basin Reliability Plan, which could begin construction as early as next year, aims to address what industry leaders describe as a critical shortage of power in the state’s largest oil field. Without adequate electricity to power field operations like compressors and pumps, oil production risks stalling in a region crucial to the state’s economy.

“Texas’ thriving production is driving the state’s success,” the Texas Oil and Gas Association wrote to regulators. The association, representing about 90% of the state’s crude oil and natural gas market, emphasized that “a reliable electricity supply is crucial to sustaining this industry.”

The plan’s most controversial element involves building the state’s largest transmission line through the scenic Texas Hill Country, a proposal that has united an unlikely coalition of conservative groups, landowners, and environmentalists in opposition. Critics argue the project threatens beloved landscapes and waterways while potentially raising electricity costs for ratepayers across the state.

“We understand the Permian Basin needs reliability,” said Jada Jo Smith, president of the Hill Country Preservation Coalition. “We’re not saying we don’t understand it needs to happen, we’re just saying do it the right way. The process needs to be carefully thought out.”

Industry representatives counter that delays pose an existential threat to Texas oil production. Ben Shepperd, president of the Permian Basin Petroleum Association, warned bluntly: “The greatest risk of failure for the Permian Basin Reliability Plan is for these necessary projects to falter under any sort of delay.”

The oil and gas industry reported a blockbuster year in 2024, but with success has come growing pressure on the region’s limited electrical infrastructure. According to industry statements to the Public Utility Commission, the available power infrastructure is “years behind the electrical needs of the industry.”

Following extensive debate, the commission partially approved the Electric Reliability Council of Texas (ERCOT) proposal to build or improve 260 transmission lines across Texas by 2038. The plan includes three major 765 kV transmission lines—higher capacity than any existing lines in Texas—with one specifically designed to transport electricity from east to west. The nearly $14 billion price tag is expected to be shouldered by ratepayers.

While regulators have approved most of the 260 proposed projects, 33 of the largest and most controversial proposals still await final approval, a process that includes public input. Opposition has grown particularly strong against the proposed path through the Devil’s River in the Texas Hill Country.

Brent Bennett, policy director at the Texas Public Policy Foundation, a conservative think tank, questioned the project’s timing and approach. “I think eventually, if the demand comes, we’re going to need them,” Bennett said of the transmission lines. “But how soon do we have to build them? And can we do this in a more phased, less disruptive manner?”

Local residents have organized protests and town halls, with Smith’s conservation coalition now representing 48,000 people across 17 organizations. “All of these areas, their livelihood depends on rivers in the summer and hunting in the winter, and these proposed routes really threaten that,” Smith said.

Political support has also shifted, with at least five lawmakers—including some who previously voted for the enabling legislation—now urging regulators to reconsider. In a letter to the Public Utility Commission, they cited concerns from constituents, businesses, local officials, and conservation groups about the project’s impact.

“Given the magnitude of this project, we believe additional time is necessary to fully evaluate the most responsible path,” the lawmakers wrote, calling for consideration of alternate routes that would “avoid pristine river basins, minimize land fragmentation, reduce ecological harm, protect sensitive water resources, and ensure meaningful public engagement.”

State Representative Eddie Morales, whose district includes the Devils River State Natural Area, acknowledged the necessity of new transmission lines while urging protection for the landscape: “This line will be built, and Texas will benefit from it. However, I am urging the PUC to recognize the importance of preserving this pristine landscape.”

The Public Utility Commission has received four applications for 765 kV projects and has 180 days from filing to approve, modify, or deny them through legal proceedings. Meanwhile, both the commission and transmission service providers continue public outreach efforts as they navigate the tension between energy needs and environmental concerns that will shape the future of both Texas oil production and its cherished natural landscapes.