TXOGA Launches New Texas Electricity Power Pulse Report: Natural Gas Remains Cornerstone of Reliability and Affordability in ERCOT

AUSTIN - The Texas Oil & Gas Association (TXOGA) today released its inaugural Texas Electricity Power Pulse (TEPP), a new quarterly report designed to track trends in the Electric Reliability Council of Texas (ERCOT) electricity market and highlight the vital role natural gas plays in maintaining reliability, affordability, and economic growth across Texas.

According to the report, total electricity demand in ERCOT rose 4.2% year over year in Q3 2025, marking a 25% increase since 2020, as population, industrial activity, and data center growth continue to expand. Natural gas supplied 47.6% of ERCOT's total generation, more than wind and solar combined, while thermal and other dispatchable resources provided at least half of ERCOT's power in more than 90% of all hours this quarter.

"The oil and natural gas industry is both a major electricity consumer and the supplier of the natural gas that fuels nearly half of Texas' power," said TXOGA President Todd Staples. "Reliable and affordable electricity is a key pillar in the foundation of the Lone State State's economy, and natural gas generation continues to ensure both, powering homes, businesses, and industry while supporting continued economic prosperity and environmental progress."

ERCOT's total generation has increased nearly 25% over the past five years, with natural gas, wind, and solar driving most of the gains. Yet even as renewable generation expands, firm, dispatchable power remains essential. The region's net peak load, the maximum hourly level of power required when wind and solar output decline, reached approximately 70 gigawatts (GW) in Q3 2025, underscoring the capacity ERCOT must maintain to ensure grid reliability.

"Natural gas remains the single most important source of power in ERCOT," said TXOGA Chief Economist Dr. Dean Foreman. "It offers unmatched scale, flexibility, and cost-effectiveness-the stability Texans depend on to meet rising demand, integrate renewables, and keep electricity affordable."

The report also highlights the abundance of Texas natural gas supply. TXOGA estimates that Texas produced an average of 28.2 billion cubic feet per day (bcf/d) of dry natural gas in Q3 2025, about four times more than ERCOT's power sector consumed. Total in-state consumption averaged 15.6 bcf/d, including 7.6 bcf/d for industry and 7.3 bcf/d for electricity generation. Since 2020, power-sector gas use has increased 15%, reflecting sustained growth in dispatchable generation and industrial demand.

The Texas Electricity Power Pulse will be published quarterly to provide policymakers, media, and the public with clear, fact-based insights into how ERCOT's performance and Texas' natural gas production together underpin the state's energy reliability and economic vitality.

TXOGA remains committed to advancing policies and investments that ensure safe, reliable, and affordable energy for Texas, the nation, and global partners. For more insights and data, and to view the full TEPP report, visit txoga.org/economics.