The Permian Basin is best known as the beating heart of U.S. oil production. But behind the scenes, another transformation is powering up—a surge in electricity demand that is turning West Texas into a critical anchor for national grid growth.

Driven by the electrification of oil & gas operations, midstream expansion, and rising residential demand, the Permian is now among the largest contributors to U.S. power demand growth—and it’s just getting started.

Permian Basin Account Directory – $10

Includes: Account name, phone, address, website, wells drilled…..

📈 Power Load: 4 GW Added in Just 3 Years

Between 2021 and 2024, Texas saw a 4 gigawatt (GW) increase in average power demand—virtually all of it tied to Permian electrification. To put it in perspective, that’s equivalent to adding the electrical load of an entire small state.

In annual energy terms, this equates to 30–35 terawatt-hours (TWh) of new consumption—driven by infrastructure that is built to stay, not just ride a commodity cycle.

🧱 Breaking Down the 7.5 GW of Permian Demand

According to analysis from Rystad Energy, the Permian Basin’s current 7.5 GW power load is distributed across four key segments:

2.5 GW – Residential & commercial demand in West Texas
- ~30% of this growth is tied directly to oilfield development since 2017
2 GW – Upstream pad operations
- Electric submersible pumps (ESPs)
- Electrified drilling and production equipment
1 GW – Natural gas compression
- Powering gathering and processing infrastructure
2 GW – Electricity use at midstream facilities and gas-fired power plants
- Includes oil stabilizers, pipeline pump stations, and liquids transmission

Importantly, this demand is structural—driven by electrification and not dependent on short-term drilling cycles. It is expected to grow significantly from 2025 to 2035 as infrastructure expands and diesel is phased out in favor of grid power.

🏭 Midstream Infrastructure: Driving the Demand Curve

This structural growth is clearly reflected in regulatory filings. Data from the Texas Commission on Environmental Quality (TCEQ) shows a surge in midstream facility permitting, particularly compressor stations and gas plants in the Permian.

🔝 Top Midstream Developers (by Facility Count in Permian TCEQ Filings)

Energy Transfer – 28 facilities
Targa Resources – 25
Enterprise Products Partners – 24
Diamondback Energy – 20
Coterra Energy – 14
Fasken Oil and Ranch, Ltd. – 13
ONEOK, Inc. – 11
Brazos Midstream – 10
Phillips 66 – 10
Vital Energy – 6

📍 Sample Facilities & Locations

Admiral Permian Resources – Pronghorn Compressor Station, near Pecos (Reeves County)
Brazos Midstream – Fairway, Sidewinder, Marion Compressor Stations, located near Big Spring and Garden City
Targa Resources – Multiple standard permits across Martin, Midland, and Glasscock counties

These facilities are permitted under “Standard Permit for Oil and Gas Sites (STDPMT)” and Permit by Rule (PBR) designations—indicating both new construction and system upgrades supporting electrification.

⚙ What It Means for the Future

The Permian Basin is no longer just an engine of oil production—it’s becoming a permanent high-load demand center for the Texas grid.

Grid reliability and power infrastructure investment are now central to upstream and midstream strategy.
Electrification improves cost efficiency, supports ESG goals, and reduces scope 1 & 2 emissions.
This trend is locked in—whether rigs are drilling or not.

🧭 Final Thought

As the U.S. edges closer to becoming the world’s next “electrostate,” the Permian’s electrification wave reveals how even the most traditional energy hubs are adapting. The region is no longer just powering oil—it’s powering the future