The Barnett shale may become one of the most important plays now being developed and not for the obvious reasons, according to Michael L. Williams, chairman of the Texas Railroad Commission.

“I thank God for the Barnett shale and I thank God for those counties that it is in,” Williams told several hundred energy professionals and others at a Greater Houston Partnership program.

“With the development of the Barnett shale, we are showing the world that you can have large-scale developments safely in an urban environment,” Williams says. “With gasoline at $4 a gallon and natural gas at $12 per MMBtu, we are finally having a chance to have a dialogue with the rest of the nation about energy development.”

The Texas Railroad Commission is in charge of energy developments in the state, he says. The importance the industry has in the Barnett shale can be judged by the number of permit applications waiting for approval by his office. At last check, he says, there were more than 500.

For the state, though, the Barnett shale will become even more important.

“Electricity is the cornerstone of economic growth in this state,” Williams says. “And we are in a state where 50% of the electricity is generated by natural gas. We have to diversify our energy portfolio.”

That means continued drilling for gas in the Barnett shale, but it also means developing other forms of energy, he says. That includes the use of coal—which should be easy in a state with enough coal reserves to last 200 years, he adds.

“Coal has to be part of the answer,” he says. “We have to have this in our mix. But, with the right use of technology we can have a healthy economy and a healthy environment.”

Williams says he will be presenting to the Texas legislature a plan that calls for a public-private partnership to help develop clean coal technology in which coal is used to generate power and the carbon dioxide created is captured and either stored or used by the energy industry for enhanced field recovery.

“And yes, I will say it, but nuclear has to be part of the answer as well,” Williams says. “We will need all of these working together to keep this state’s economy operating.”