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Peak Oil and Texas’ Energy Future


The concept of peak oil refers to situations regarding the reserves of oil in the world is limited and being gradually being depleted due to excessive use. Ultimately a situation would come when such reserves would start to run out and the production of oil will start showing a declining pattern.

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In this context, the state of Texas has already reached its position of peak oil which is evident from the fact that in 1994 the state had to import on account of its energy needs in comparison to the previous periods when it used to be a net exporter of energy resources. These developments have the potential to create far-reaching economic and social consequences in that the state has now come to be dependent on external sources for such an important requirement. It has also become highly vulnerable to the vagaries of international oil price volatility which can have serious consequences for the entire economy of the state since all sectors and households are very much dependent on energy. With rising oil prices, the cost of production of most commodities will go up and households will have to become more economical in using gas for traveling and other uses. An overall increase in prices triggers an inflationary trend which is not healthy for society and the economy as it further leads to a chain of adverse reactions by way of reduced purchasing power for the people.

Given the situation in Texas regarding the gradual depletion of its oil reserves, in 40 years the crisis will assume serious consequences which will entail 80% import of its energy requirements. Under the circumstances, immediate steps must be taken to find alternative sources of energy to meet the imminent shortage. There are several choices in this regard that have short and long-term solutions. To bring about an immediate improvement the best solution is to tap the wind and solar options which have a very short gestation period and the fruits of investment in these sectors can be reaped almost immediately. Most areas in Texas have the sun shining for the full year and solar panels of the latest technology can be installed using vast tracts of land that may not be worthy of agricultural produce. Although solar technology has been advancing quite rapidly, the quantum of energy is not to the extent that is available from conventional methods such as thermal power, hydroelectricity, and oil energy. But it would certainly provide relief in the short run. Similarly, wind power has immense potential to produce electricity by installing windmills in pre-identified locations where the force of the wind is found to be consistently strong. In this case, too the quantum of electricity produced cannot be substantial but is ideal as an alternate source of energy. Given the impending shortage due to the oil crisis, the government must make long-term objectives in providing financial resources to set up more hydroelectric power stations and thermal power stations. There is substantial untapped potential for hydropower in the several river basins of the Colorado River and the Lower Red areas where resources can be allocated and invested to set up hydroelectric stations which will meet the energy requirements of the state in due course. The huge coal reserves in the Gulf Coast region of Texas must be utilized to construct sizable thermal power stations that will be functioning with the supply of coal to produce thermal power. Innovations in nuclear technology have enabled the use of nuclear energy for producing electricity in huge quantities, and this option should also be considered in sorting out the issue of the energy crisis in Texas. Finally, additional resources should be allocated as also incentives are given to private companies to engage in oil exploration to discover new sources of oil within the state. All these efforts will go a long way in meeting the challenges that the oil shortage has created in the state.

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StudyCorgi. (2021, October 25). Peak Oil and Texas’ Energy Future. Retrieved from


StudyCorgi. (2021, October 25). Peak Oil and Texas’ Energy Future.

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"Peak Oil and Texas’ Energy Future." StudyCorgi, 25 Oct. 2021,

1. StudyCorgi. "Peak Oil and Texas’ Energy Future." October 25, 2021.


StudyCorgi. "Peak Oil and Texas’ Energy Future." October 25, 2021.


StudyCorgi. 2021. "Peak Oil and Texas’ Energy Future." October 25, 2021.


StudyCorgi. (2021) 'Peak Oil and Texas’ Energy Future'. 25 October.

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