The Constellation Energy Handley Generating Station in Fort Worth has Energy Transfer pipes (bottom right). Photo: Shelby Tauber/Bloomberg via Getty Images
Dallas pipeline operator Kelcy Warren and Gov. Greg Abbott expect Texas to increase energy production during the upcoming Trump administration.
Why it matters: President-elect Trump has promised a looser regulatory environment for oil and gas drilling in the U.S.
Oil and gas taxes are the second biggest source of revenue for the Texas state government behind sales tax collections.
Driving the news: Warren, the co-founder of Dallas-based Energy Transfer, and Abbott discussed the future of energy in Texas at the Dallas Citizens Council's annual meeting yesterday.
Both said they spoke to Trump after the election and are confident there will be more drilling in Texas.
Energy Transfer reported that natural gas demand is increasing and the company is seeing more opportunities to fuel power plants and data centers.
The latest: Abbott said Trump promised to eliminate the Environmental Protection Agency's regulations "that are tying the hands of the energy sector in the state of Texas."
The governor said it's critical to increase drilling to lower the cost of petroleum products, which would help drive down the price of other products.
The other side: The EPA says the oil and gas industry is a major emission source of methane, a planet-warming gas.
Zoom out: If Texas were a country, its gross domestic product would fall just behind France's GDP. Abbott said he expects Texas' GDP to pass France's next year to become the seventh largest economy in the world.
Abbott said that's because Texas is business friendly: "In Texas we have a motto, and that is Texas moves at the speed of business."
