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The majority of Tennessee's electricity is produced by coal. Tennessee is one of the top hydroelectric-generating states east of the Rocky Mountains, producing 12 percent of its electricity from hydroelectric power. Tennessee generates over 30 percent of its electricity from nuclear power.

Hornet Corporation, an oil and gas exploration, development and production firm based here, has recently drilled in two oil wells, in two different Tennessee counties, one with initial production (IPs) of 60 barrels of oil a day and one that flowed 300 barrels of oil after stimulation.

Tennessee has as many as 16,000 oil and gas wells, based on the number of permits granted by the Tennessee Department of Environment and Conservation since 1968, but there is limited information on their activity or closure status.

Although only about 15 percent of the state is actively producing oil or gas, geologists believe a much larger percentage of the state has the potential to produce crude oil and/or natural gas.

In conventional natural gas deposits, the natural gas generally flows easily up through wells to the surface. In the United States and in a few other countries, natural gas is produced from shale and other types of sedimentary rock formations by forcing water, chemicals, and sand down a well under high pressure.

Wide bends in the Tennessee River divide the state into three regions: the largely mountainous east, a central basin rimmed by highlands, and the low, rolling plains of western Tennessee. The eastern part of the state produces coal, natural gas, and crude oil, although those fossil energy reserves are modest.