Texas is basically a giant treasure chest. Most people look at the Lone Star State and see a dusty oil derrick or a cow. Sure, those are there. But if you think that’s the whole story, you’re missing the shift that's turning the state into a global resource powerhouse in ways that have nothing to do with a drill bit.
Honestly, the sheer scale of Texas natural resources is hard to wrap your head around. We aren't just talking about "black gold" anymore. We are talking about a massive transition into rare earth minerals, a solar boom that is literally eclipsing California, and a water crisis that is forcing some of the smartest engineering on the planet.
The Oil King Isn’t Dead (But It Is Changing)
Let’s get the big one out of the way. Texas still dominates oil. If Texas were its own country, it would rank fourth in the world for crude production. That’s ahead of almost every nation on Earth except the U.S. as a whole, Russia, and Saudi Arabia.
As we hit 2026, the Permian Basin is still the heavy hitter. It accounts for more than half of all American crude output. But here’s the kicker: the "wildcatter" days are sorta over. It’s all about efficiency now. Companies are drilling fewer wells but using AI and advanced robotics to squeeze more value out of every single one. The U.S. Energy Information Administration (EIA) projects production to hover around 13.5 million barrels per day this year.
But there’s a new player in the dirt. Lithium.
Deep under the East Texas soil, in a massive brine deposit called the Smackover Formation, companies like Exxon and various startups are hunting for "white gold." They aren't digging giant pits. They are pumping up super-salty, metallic fluids, stripping out the lithium for EV batteries, and shoving the water back down. It’s a clean-ish way to fuel the electric revolution using the same plumbing skills we perfected for oil.
The Rare Earth Rush in West Texas
Ever heard of Round Top Mountain? It’s a jagged hunk of rock near Sierra Blanca, about 85 miles east of El Paso. For decades, it was just... a hill. Now, it’s arguably one of the most important spots for national security in the United States.
Texas Mineral Resources Corp and USA Rare Earth are sitting on a goldmine of 15 different rare earth elements. We’re talking about things like gallium and hafnium—stuff you’ve probably never heard of but is tucked inside your smartphone and the F-35 fighter jets assembled in Fort Worth.
The U.S. currently buys about 75% of these minerals from China. Texas is trying to change that. The Round Top deposit is projected to have a 20-year mine life, and they’re fast-tracking production to start as early as 2028. It’s a massive shift from being a "fuel state" to being a "tech-hardware state."
Why the Sun is the New Gusher
This is the one that shocks people. Texas is currently beating California at its own game.
In 2025, solar power in Texas actually surpassed coal for the first time ever. Read that again. The land of oil and gas is now a solar titan. In the first nine months of last year alone, Texas installed 7.4 gigawatts of solar capacity—nearly double what California did in the same timeframe.
- Solar Value: The industry is now worth over $50 billion.
- Wind Power: We still lead the nation, producing nearly 30% of all U.S. wind energy.
- Storage: 90% of new solar projects now come with massive battery setups to keep the lights on when the sun goes down.
It’s not just about being "green," either. It’s about money. Renewables avoided the consumption of 68 billion gallons of water in 2025 because wind and solar don’t need the massive cooling towers that coal and gas plants do. In a state that is perpetually thirsty, that’s a huge win.
The Water Crisis Nobody Talks About Enough
You can't talk about Texas natural resources without talking about the one we’re running out of: water.
Our population is exploding, but our aquifers are shrinking. The Texas Water Development Board (TWDB) projects that our groundwater availability will drop by 25% by 2070. That’s a terrifying stat when you realize half the state relies on that underground water.
We’re seeing a "binational tussle" over the Rio Grande with Mexico, and South Texas is feeling the squeeze of record-breaking droughts. The state is throwing billions at the problem—literally. Voters recently approved $20 billion for water projects. We’re looking at massive desalination plants in Corpus Christi and "aquifer storage and recovery" (basically using natural underground caves as giant Tupperware containers for rainwater).
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Agriculture and the Piney Woods
Then there's the stuff that grows. Texas agriculture is a $25 billion beast.
Cotton is still king in the Panhandle, with production expected to hit over 5 million bales this year. But the real surprise? Timber.
The "Piney Woods" of East Texas cover over 12 million acres. This isn't just a scenic forest; it’s a massive manufacturing engine. We produce billions of square feet of plywood and OSB every year. Interestingly, 92% of this timberland is privately owned. It’s a patchwork of family farms that have been growing pine trees for generations.
Actionable Insights for 2026
If you’re looking to capitalize on the changing landscape of Texas resources, you have to look beyond the surface.
- Monitor the "Smackover" lithium plays. The intersection of oil technology and battery minerals is where the biggest business growth is happening in East Texas.
- Invest in Water Infrastructure. Whether it's filtration tech or xeriscaping, the "Water Economy" in Texas is about to become as big as the "Energy Economy."
- Watch the Grid. ERCOT (the Texas grid) is undergoing a $33 billion transmission upgrade. If you’re in real estate or tech, knowing where the new "backbone" lines are going is key to finding the next boomtown.
Texas isn't just a state with a lot of land. It's a laboratory for how the world is going to power itself for the next century. From the rare earths in the west to the lithium in the east, the resources are there—if we can manage the water well enough to use them.
Next Steps for You:
Check the 2026 Regional Water Plans via the TWDB website if you are planning any major land or business investments. The availability of water in your specific "Region" (A through P) will dictate your property value more than almost any other factor in the next decade.