Guest column

Texas expert: Evaluating COP28's progress amid the energy transition

The controversy that dogged the climate summit shows the extent to which misinformation, politics, and outdated beliefs reign supreme — and hinder progress toward net zero, says this Texas expert. Photo by COP28 / Anthony Fleyhan

Before it even started, COP28 drew sharp condemnation from activists and left-leaning politicians who took issue with the climate conference location: the United Arab Emirates, a leading oil and gas-producing nation.

“Time to say ‘the F-words’?” CNBC asked in one headline, referring of course to “fossil fuel.” A group of US and EU lawmakers called for the removal of COP28 President Sultan al-Jaber, head of the UAE’s national oil company Adnoc. And former Vice President Al Gore slammed the host nation and the summit itself, saying it was “abusing the public’s trust” because al-Jaber couldn’t be an honest broker of a climate deal.

I get it. The optics were certain to raise eyebrows and provide low-hanging fruit for critics. But the extent to which the conference became a global flash point was surprising even to the most cynical of onlookers. Finger-pointing took center stage, relegating rational discussion to the shadows. Misinformation and distrust flourished as a tired old energy transition narrative took hold — one that pits villain oil and gas against hero Renewables in an epic fight to save the planet.

At Workrise we follow data, not ideology, you’ll know that success in the energy transition is an all-of-the-above proposition. And in this regard, COP28 made progress. Reading the text of the agreement it’s clear that the delegation has adopted the view that the dominant suppliers of energy to the world — oil and gas companies — must be a part of the solution going forward, and accepted the reality that fuel sources like nuclear and natural gas must be leveraged if we are to reach our 2050 targets.

This pragmatic approach makes sense all the time, but it has particular resonance now as the industry undergoes a sea change in the form of consolidation. Nowhere is this M&A wave more keenly felt than in Texas, where the value of 2023 mergers and acquisitions in the Permian basin reached more than $100 billion after massive deals including ExxonMobil's proposed $60 billion purchase of Pioneer Natural Resources and Chevron's $53 billion acquisition of Hess. These kinds of deals will bring a seismic shift in the way the industry operates — including by enabling companies like Exxon and Chevron to find new production efficiencies, and further bake emissions reduction into their operating models.

But what becomes clear when reading the COP28 agreement is that in nearly all cases, the room was too divided to put measurable targets on the board that are enforceable. Nearly every “commitment” comes with words that provide loopholes and outs.

So what we have is a “deal” that stops short of the kind of black-and-white commitments that create accountability — a deal with language folks can live with, but that won’t meaningfully change realities on the ground. Which begs the question: Why is that, and why can’t we do more?

Two words: dogma and hostility. They are the root cause of the polarization that gripped the conference and steers the wider conversation about the energy transition worldwide. With those powerful forces holding sway, we will never get to agreements that have the teeth required to move the needle on this global challenge.

At the end of the day, it was impressive to see Al Jaber emerge from the summit with a deal of any kind, despite the fire storm that he fueled with his comments earlier in the conference.

What the world needs is leaders who are willing to put aside ideology, rely on proven facts, and grab every opportunity they have to move the chains. Just as important, those leaders need to understand the sensitivity of this topic — and how easily it becomes cannon fodder for those who seek to weaponize it. Without the right leadership, how can we hope for the general public to engage meaningfully in this debate, and to understand what their vote — whether they cast it with their wallet or at the ballot box — truly means?

So long as both sides of this debate dig in and throw stones at each other, the journey to net zero will continue to get longer and more arduous.

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Joshua Trott is chief revenue officer at Austin-based Workrise, which is a labor provider and supply chain solution for energy companies — including some in Houston.

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A View From HETI

Gold H2 has aligned itself with an oil and gas company, making its Black 2 Gold microbial technology available for the first time. Photo via cemvita.com

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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