Houston’s Role in the Green Energy Transition

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Houston, Texas, the city we proudly call home, has been known as the oil and gas capital of the world. The Houston economy—including many jobs—is reliant on the oil and gas industry. But as the effects of climate change continue to hit home, most notably in the form of Hurricane Harvey, transitioning to renewable energy has become an imperative for Houston and Texas as a whole.

At its Future of Global Energy conference this week, the Greater Houston Partnership, the region’s largest chamber of commerce, will reveal a plan outlining how Houston can guide global energy transition to a low-carbon future.

Houston’s leaders recognize that to remain the energy capital of the world, it must be a leader in balancing current realities, future needs, and innovation. The city plays an important role in the global energy infrastructure but must support its local economy and workforce.

Jobs

The energy transition discussion often circles back to jobs. In Texas, approximately 160,000 jobs are tied to oil and gas and upstream activities. Compare that to the current 5,200 employed in nuclear, solar, and wind energy generation, according to the Texas Workforce Commission.

The Biden Administration has set jobs in renewable energy as a top priority. The Labor Department projects that jobs for wind turbine technicians will surge 61 percent from 2019 to 2029, the fastest growth rate of any occupation. And as of now, there aren’t enough skilled workers to fill the jobs that do exist. There’s a pipeline problem, no pun intended.

Those working on the energy transition are optimistic about the skills transfer from oil and gas to renewables. “A lot of the skill sets required to make the production, delivery, and distribution of everything oil-and-gas based—it translates,” said Kenneth Medlock III, senior director of the Center for Energy Studies at Rice University’s Baker Institute. “You’re talking about chemistry and chemical engineering, mechanical engineering, supply chain logistics, knowledge of (the Earth’s) subsurface. These things are needed on a daily basis in oil and gas, and they’re also needed in these new parts of the energy industry.”

Even with the expected growth, the Texas Alliance of Energy Producers claims that clean energy employment won’t come close to matching the number of oil and gas jobs in Texas and nationwide.

Growing Energy Needs

Another reality Houston is considering is the continued increase in energy demand. 

“Here in Texas, with the energy constraints we’ve seen, we need more energy sources,” Modglin said, citing the problems of the state’s power grid. “We need to focus on finding policy solutions to grow the pie as opposed to doing away with 80 percent of it, which is what fossil fuels provide here in the U.S. To do away with (traditional energy) would be incredibly short-sighted.”

In other words, before we can remove reliance on oil and gas, there has to be more than current levels of energy supply to meet growing needs. Houston’s leaders know this and are working to position the city as a leader in the transition.

“Houston understands energy at scale,” said Emily Reichert, CEO of Greentown Labs. “Whether we’re talking about traditional sources or new sources of energy, there are talent resources, assets, education, established businesses, and financial understanding—all those factors are concentrated in Houston. It makes this a unique place from which to think about and imagine and really drive what energy looks like going forward.”

Embracing the Energy Brand

“It’s critically important to Houston that we manage this energy transition successfully,” said Bob Harvey, CEO of the Greater Houston Partnership. “Energy has been so vital to Houston as an industry for more than a century, and for that to continue, we’ll have to be a part of this transition to a low-carbon future.”

In April 2020, Houston Mayor Sylvester Turner announced the city’s Climate Action Plan, which aims to achieve carbon neutrality locally by 2050. The city is starting local, knowing its leadership can have statewide, national, and global impacts.

“I won’t say [the energy transition] can’t happen without Houston, but it certainly will be significantly enhanced and accelerated to a significant degree with Houston,” said Mayor Turner. “We’re the energy capital of the world and have been for a long time. We are a land of innovation, and this is the intellectual capital of the world when it comes to the energy sector. I think it’s only naturally fitting and appropriate for Houston to lead in energy transition.”