**Adapting to Electrification: How Oil and Gas Companies Navigate the Clean Energy Transition Amid Grid Challenges**
The rapid shift towards electrification in the oil and gas industry has catapulted companies into an intense competition for clean energy supplies. At least half of oil and gas leaders surveyed in recent months have reported struggling to secure the necessary energy in key regions such as the Mountain West, Gulf Coast, and New England. This surge in demand, driven by commercial electricity consumption increases in states like Texas, Oklahoma, and North Dakota, highlights a pressing issue: the grid’s ability to meet emerging energy needs¹.
### The Convergence of Increased Demand and Grid Constraints
Sustained commercial electricity growth, forecasted to continue through 2025 by the U.S. Energy Information Administration, is straining the grid. This trend has prompted oil and gas operators to seek more efficient and reliable sources of clean energy. The survey conducted by Endeavor Business Intelligence on behalf of NextEra Energy revealed that 88% of oil and gas industry leaders are either currently electrifying or evaluating the electrification of operations. While this move towards electrification offers benefits like cost savings and reduced emissions, it also intensifies the competition for clean energy supplies².
### Strategies for Procuring Clean Energy
1. **Grid Power with Renewable Energy Credits**
– Thirty percent of oil and gas leaders surveyed use a clean energy option where grid electricity is supplied with offsetting renewable energy credits. An additional 54% are actively pursuing similar options. However, this solution may not suffice in regions facing grid power constraints³.
2. **Off-site Renewable Energy**
– Thirty percent of companies utilize energy from off-site renewable projects such as solar and wind farms. A further 46% are exploring this avenue. The primary challenge lies in connecting these renewable sources to the grid, which often requires costly and lengthy transmission upgrades³.
3. **On-site Renewable Energy**
– Twenty-nine percent of companies have developed on-site