The following is from the Dec. 31, 2007, edition of The Killeen Daily Herald. SMU Finance Professor Michael Davis provided expertise for this story.

Texas' energy industry continues to diversify with alternative sources

By John Porretto
The Associated Press

HOUSTON To understand the increasing diversity of Texas' energy economy, consider this: T. Boone Pickens, the legendary wildcatter who made his fortune in oil, is now betting on wind.

Pickens announced plans in June to build the world's largest wind farm in West Texas, a project that could cost as much as $6 billion.

Pickens' proposal is further evidence that Texas' economy no longer booms or busts simply on a change in the price of a barrel of oil.

Of course, Exxon Mobil Corp., 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. . .

Despite advancements in alternative fuels, Southern Methodist University finance professor Michael Davis said it's vitally important for Exxon Mobil, ConocoPhillips and others to continue their aggressive exploration for and production of oil and natural gas.

"I wish I could say there's this huge reservoir of energy out there and all we've got to do is put up wind mills and cut our carbon footprint and still live the way we want to live," Davis said. "But I don't think that's true."

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