1. Texas solar boom
- Texas already leads the nation in wind power, but it is rapidly catching up to California in solar.
- Texas is set to add 10 GW of solar by the end of 2022. California will only add 3.2 GW, according to the EIA.
- Texas will capture one-third of all new utility-scale solar coming online in the U.S. in the next two years.
- Roughly 30% of the new solar destined to be installed in Texas will occur in the Permian basin.
2. Biden pledges 50-52% cut in emissions
- President Biden announced a goal of slashing emissions by half by 2030, from a 2005 baseline. Other countries upped their ambition as well.
- That would require a 5% annual reduction going forward, which would be much faster than the 1.1% annual decline between 2007 and 2019.
- As Liam Denning at Bloomberg Opinion points out, that would require 80% reduction in emissions from the power sector, cutting methane emissions in half, plus finding another 1.2 billion tonnes of CO2 to cut, likely from transportation.
- The aggressive target will be difficult to reach, but the trajectory is clear, which carries enormous implications for oil and gas.
3. U.S. natural gas production to jump
- U.S. natural gas production is expected to jump, following several years of contraction.
- Natural gas output is set to hit a new record in 2022, at 93.3 billion cubic feet per day, according to Rystad Energy.