Contributing about 25 percent of all the energy ever produced in the United States, Texas has for 50 years led the nation in energy production. Historically, the Texas production has been chiefly from nearly equal amounts of crude oil and natural gas, augmented by smaller amounts of natural gas liquids, uranium, coal, and lignite.

Lignite is a rediscovered energy in Texas because lignite-produced energy is 3 to 7 times cheaper than intrastate natural gas. Production has risen from 18,000 short tons in 1950 to 14 million tons in 1976 and will exceed 50 million tons by 1985. Currently installed lignite-fired generating capacity is 3410 MW and may reach 11,475 MW in 1985. Steam-electric stations up to 3000 MW, are planned; individual generating units are 120 to 750 MW.