Texas Energy Industry Continues to Diversify

HOUSTON (AP) - To understand the increasing diversity of the state's energy economy, consider that legendary oil and gas wildcatter Boone Pickens is now betting on wind.

Pickens announced plans in June to build the world's largest wind farm in West Texas. The project could cost as much as six billion dollars.

The proposal is further evidence that the Texas economy no longer booms or busts simply on a change in crude oil prices.

Of course, Texas oil and gas giants Exxon Mobil, ConocoPhillips and others continue to make headlines with massive, even record, profits. But amid global supply concerns, environmental issues and other factors, Texas saw significant developments in 2007 on wind,

nuclear, biofuels and other new frontiers.

The state may have missed out on the 1.8 billion-dollar FutureGen coal plant, which will be built in Illinois. But most observers predict more advancements in power production in 2008 and beyond.

Texas already leads the nation in wind-energy production, and more is on the way. Two wind farms are in the works on the Gulf Coast next to the famed King Ranch, though conservationists have gone to court to stop development.

The state's nuclear capabilities could be growing too in the next few years. In September, power producer NRG Energy revealed plans to add two reactors at its plant near Bay City. The two existing reactors there have produced energy since the late 1980s.

It marked the first new application to build and operate new reactors in the U.S. in about 30 years.

On the biofuels front, Governor Rick Perry has said the state's strategy for developing such alternative energy sources will focus on using nonfood products so the effort doesn't conflict with the state's multibillion-dollar cattle industry.

Biofuels, such as ethanol, are often made from corn and other agricultural products, which ranchers also use to feed their cattle. Perry said Texas will focus on creating biofuels from cellulosic products such as switchgrass, wood chips and corn stems.

Already, Texas A&M and Chevron are teaming up on such a project.

(Copyright 2007 by The Associated Press. All Rights Reserved.)