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The Permian Basin (PB) is an important energy hub in the United States. In July 2023, oil production reached more than 5.5 million barrels/d while gas production was 24 bcf/d. Meanwhile, renewable energy generation in the PB is growing, and ∼13% of total power-generation capacity in Texas comes from PB renewable energy. Several decades of oil-and-gas exploitation in the PB led to construction of extensive pipeline networks that transport natural gas to markets and CO2 to enhanced oil recovery (EOR) operations. The convergence of this diverse envelope of energy resources and infrastructure gives the PB an advantage for deploying low-carbon solutions, including carbon capture, utilization, and storage (CCUS), and potential commercialization of hydrogen generation and storage. Hydrogen in the PB can be generated at low cost because of abundant natural gas supply and existing solar and wind power.
This study explores pathways to leverage potential opportunities in the PB to develop a more diverse energy mix. We will establish a methodology for high-grading areas based on their potential for renewable energy generation and availability of natural gas by identifying limiting factors and using filters to rule out areas that are not suitable for certain energy generation projects.