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Report ranks Texas as among least expensive states for energy

If you live in Texas, you're paying less than residents in almost every other state. Photo via Getty Images

A new report analyzed energy costs across the United States to find out what states had the highest energy prices. Turns out, Texas falls rather low on that list.

The study from WalletHub ranked Texas as No. 49 on the list of the 2023 Most Energy-Expensive States. According to the U.S. Energy Information Administration, almost a third (27 percent) of the country report having difficulty meeting the energy needs of their household.

"To better understand the impact of energy on our finances relative to our location and consumption habits, WalletHub compared the total monthly energy bills in each of the 50 states and the District of Columbia," reads the report. "Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil."

The report ranked states based on their total monthly energy cost, but also identified the following:

  • Monthly electricity cost
  • Monthly natural-gas cost
  • Monthly motor-fuel cost
  • Monthly home heating-oil cost
Texas households' total monthly energy cost was reportedly $378, which is only beat by New Mexico ($373) and DC ($274). The top five most expensive states for monthly energy cost is as follows.
  1. Wyoming at $845
  2. North Dakota at $645
  3. Alaska at $613
  4. Connecticut at $593
  5. Massachusetts at $589
When comparing to other states, Texas monthly electricity costs are relatively high. At $153 a month, the Lone Star State ranks No. 11 in that category. Meanwhile, when it comes to monthly home heating-oil cost, Texans pay an average of $0 a month, as do Mississippi residents.
Fuel prices are also cheaper in Texas, as the state ranks No. 49 with only Louisiana and Mississippi with lower costs, respectively.

While Texans can find some comfort in the lower-than-average energy costs, the whole country is expected to see some prices increase, one of the report's experts says.

"Most likely, energy prices will continue to rise in 2023, although perhaps more slowly than at times in the past," writes Peter C. Burns, director of the Center for Sustainable Energy at Notre Dame. "The war in Ukraine continues to create uncertainty in energy supplies in Europe, while pledges to reduce oil production in the interests of reducing greenhouse gas emissions will also contribute to increasing prices."


Source: WalletHub

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A View From HETI

Here's 1PoinFive's newest customer on its Texas CCUS project. Photo via 1pointfive.com

Occidental Petroleum’s Houston-based carbon capture, utilization and, sequestration (CCUS) subsidiary, 1PointFive, has inked a six-year deal to sell 500,000 metric tons of carbon dioxide removal credits to software giant Microsoft.

In a news release, 1Point5 says this agreement represents the largest-ever single purchase of carbon credits enabled by direct air capture (DAC). DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted.

Under the agreement, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.

“A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable [DAC] into its net-zero strategy,” says Michael Avery, president and general manager of 1PointFive. “Energy demand across the technology industry is increasing, and we believe [DAC] is uniquely suited to remove residual emissions and further climate goals.”

Brian Marrs, senior director for carbon removal and energy at Microsoft, says DAC plays a key role in Microsoft’s effort to become carbon-negative by 2030.

The carbon dioxide will be stored at 1PointFive’s first industrial-scale DAC plant, being built near Odessa. The $1.3 billion Stratos project, which 1Point5 is developing through a joint venture with investment manager BlackRock, is designed to capture up to 500,000 metric tons of CO2 per year.

The facility is scheduled to open in mid-2025.

Aside from Microsoft, organizations that have agreed to buy carbon removal credits from 1Point5 include Amazon, Airbus, All Nippon Airways, the Houston Astros, the Houston Texans, and TD Bank.

Occidental says 1PointFive plans to set up more than 100 DAC facilities worldwide by 2035.

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