Setting up Utilities for Onshore Oil Production
When setting up utilities for onshore oil production in the Permian Basin, you’ll need the infrastructure basics, including water, gas and electricity.
Whether you’re performing drill site preparation, drilling, well construction services, completion services, or on-site management, electricity is critical. But it can be more complex in Texas.
Since electricity is deregulated in Texas, you’ll need to contact the local utility company to set up a meter(s). That could be Oncor, TNMP or AEP-Central. Then you’ll need to compare rates from multiple electricity companies to find a supplier. Then negotiate an electricity contract.
Working with a commercial energy broker for your electricity procurement makes this process easier.
Get a custom quote on electricity for your oil production or oilfield services facility. Or call us at 844-214-5559. We can help you shop electricity companies in deregulated markets to get the best rates.
Electricity for Oilfield Services in Permian Basin
If you are setting up an oil field operation remotely, from another part of the country? Welcome to Texas. Texas electricity has been deregulated since 2001. Commercial & Industrial customers can purchase electricity from a number of suppliers. You can’t purchase electricity directly from the utility company.
Electricity Procurement Steps
Here are just some of the steps you’ll need to setup electricity for your facilities:
- Ramp-Up Estimating: For new projects, you’ll need to estimate usage to ensure appropriate contracting language.
- Choosing a supplier. Some suppliers are not willing to work with the variable usage and high meter count typical of an oil field project. Our energy advisors know which suppliers are flexible.
- Meter Setup. Coordination between the supplier, local authorities and the utility is key.
- Tax Exemption. Your project could qualify for tax exempt status for your electricity bill.
- Meter Count. Adding and subtracting meters from a contract can be cumbersome. High meter count portfolio management is a better approach.
When you work with an energy broker like ElectricityPlans.com and our team of energy advisors, you have a team of specialized analysts and advisors with the right combination of technical and operational expertise to offer best-in-class solutions.
Cities in the Permian Basin with Deregulated Electricity
When you are setting up oilfield services operations in the Permian Basin you have a unique situation: deregulation.
Working with an energy broker like ElectricityPlans.com and our energy advisors can help you navigate how to contract for electricity.
These Texas towns in the Permian Basin all have deregulated electricity:
- Big Spring
- Lubbock (pending 2023)
- San Angelo
Our team has helped natural gas and oil producers, refineries, midstream oil services providers, drilling companies, exploration companies and more navigate Texas electricity.