top stories

McKinsey makes acquisition, Shell slows solar, and more trending Houston innovation news

Here's what news trended this week on EnergyCapital. Photo via Getty Images

Editor's note: From recent M&A activity to a recent report on AI, these are the top headlines that resonated with EnergyCapital readers on social media and daily newsletter this week.

Shell shrinks renewable portfolio yet again with latest divestment

Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. Photo via shell.us

In a move aimed at focusing more on its oil and gas business, Houston-based Shell USA continues to scale back its wind and solar energy portfolio.

The Reuters news service reported February 29 that Shell’s Savion subsidiary, which the energy giant acquired in 2021, plans to sell about one-fourth of its solar generation and storage assets. These assets represent as much as 10.6 gigawatts of generation and storage capacity.

This development follows the completion in early February of deals for Kansas City, Missouri-based Savion to sell its 50 percent stake in a solar energy project in Ohio and for Houston-based Shell Wind Energy to sell its 60 percent stake in a wind farm in Texas. Continue reading.

Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report

The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role. Image via Shutterstock

Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.

This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.

“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com. Continue reading.

McKinsey acquires Houston-area co. to enhance sustainability services

According to McKinsey data, more than $3.5 trillion will be invested in green hydrogen, carbon capture, renewable energy, and other projects that are working toward net-zero transition by 2050. Photo via ses-estimating.com

A global management consulting company has executed on an acquisition key to its plans amid the energy transition.

McKinsey & Company announced the acquisition of Strategic Estimating Systems, a Sugar Land-based consulting firm specializing in cost estimation for oil, gas, and chemical process industries. The acquisition provides McKinsey with enhanced benchmarking capabilities across capital project management — especially within the energy transition. The terms of the deal were not disclosed.

"The capital projects ecosystem is presented with a once-in-a-generation chance to aid in transforming economies to achieve net zero," Justin Dahl, partner and global leader of McKinsey & Company's Capital Analytics, says. Continue reading.

Houston orgs name student, industry teams for CERAWeek pitch competition

Nearly 40 climatetech startups will pitch at this upcoming CERAWeek event from HETI, the Rice Alliance, and TEX-E. Photo by Natalie Harms

The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 39 energy ventures that will pitch at 2024 Energy Venture Day and Pitch Competition during this month's CERAWeek.

The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before venture capitalists, corporate innovation groups, industry leaders, academics, and service providers during CERAWeek's Agora program.

The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track. Continue reading.

Houston-based female business leader named changemaker amid energy transition

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list.

A Houston renewable energy developer CEO has scored a prestigious spot on a list of changemakers.

EDP Renewables North America announced its CEO Sandhya Ganapathy has been named to CNBC’s inaugural Changemakers: Women Transforming Business list. Ganapathy was recognized for ESG and ED&I Initiatives while helping to advance the clean energy transition.

The new list recognizes female leaders at companies and philanthropic organizations that have achieved impactful financial and business milestones.

“Thank you to CNBC for recognizing the leadership and groundbreaking initiatives the women on this list have achieved,” the company said in a statement on LinkedIn. “As our renewable energy market sector continues to progress and expand, we will need everyone in our industry to be a #changemaker to ensure #reliable, #costeffective, #homegrown energy is accessible to all.” Continue reading.

Trending News

A View From HETI

Can Texas build the energy infrastructure needed to power what comes next? Photo via Getty Images

For a few weeks this summer, Houston welcomed the world.

The FIFA World Cup 2026 showcased our city's ability to host one of the largest international events on the planet. Millions watched from around the globe while hundreds of thousands of visitors experienced firsthand what Houston has become: a world-class destination for business, culture and global events.

But once the final match is played and the visitors return home, a more important question remains: Can Texas build the energy infrastructure needed to power what comes next?

The World Cup wasn't the finish line. It was a glimpse into the future.

That future is being shaped not only by population growth, but also by artificial intelligence, hyperscale data centers, advanced manufacturing, electrification, LNG expansion and continued industrial investment. Together, these forces are creating an unprecedented demand for electricity and placing new expectations on the infrastructure that supports it.

Energy Has Become Economic Infrastructure

For decades, economic development centered around highways, ports, airports and workforce.

Today, another asset has moved to the top of that list: energy infrastructure.

Reliable electricity is no longer simply a utility service. It has become a competitive advantage.

Companies evaluating where to build the next AI campus, manufacturing facility or industrial complex are increasingly asking different questions. How quickly can power be delivered? Is there enough transmission capacity? Can substations support future expansion? Is water infrastructure available? What is the long-term reliability of the local grid?

These questions are becoming just as important as tax incentives and available real estate.

Recent comments from Governor Greg Abbott that future AI developments should provide their own power generation and water illustrate just how dramatically the conversation has evolved. The challenge is no longer limited to meeting today's demand. It is preparing for a future where entirely new industries require unprecedented amounts of electricity while ensuring existing homes and businesses continue to receive reliable, affordable service.

The Next Energy Race Has Already Begun

Texas remains the nation's energy leader, producing more electricity than any other state while continuing to expand natural gas, wind, solar and emerging technologies.

But leadership in the next decade will be measured differently.

Success will depend on how quickly we can expand transmission infrastructure, modernize distribution systems, accelerate interconnection, strengthen grid resilience and support new generation where economic growth is occurring.

The conversation has shifted from producing more electricity to delivering it smarter.

That requires planning years before demand arrives.

Houston Is the Proving Ground

Houston sits at the center of this transformation.

Already recognized as the Energy Capital of the World, the region continues attracting major employers, global headquarters, industrial expansion and technology investment. The Port of Houston continues to grow. Advanced manufacturing is expanding. AI companies are evaluating Texas alongside other national markets.

Every one of these investments depends on reliable infrastructure.

While the World Cup demonstrated Houston's ability to manage a temporary surge of visitors, the more significant challenge lies ahead. Permanent economic growth creates sustained electricity demand that cannot be addressed with temporary solutions.

Meeting that demand will require coordinated investment across generation, transmission, distribution, storage and increasingly, digital technologies capable of forecasting and managing electricity in real time.

Smarter Infrastructure for a Smarter Grid

The future electric grid will look very different from the one that built modern Texas.

Artificial intelligence, predictive analytics, advanced sensors and distributed energy resources will allow operators to anticipate demand, identify equipment failures before they occur and optimize energy delivery across increasingly complex networks.

Infrastructure is no longer simply about building more. It is about building smarter.

At the same time, resilience must remain central to every investment. Texans understand better than most that hurricanes, flooding, winter storms and prolonged heat waves are no longer rare events. Modern infrastructure must not only support growth but also withstand increasingly volatile weather.

Building Beyond the Headlines

The World Cup generated headlines because of what happened on the field.

Its lasting legacy may be what it revealed about the city beyond the stadium.

Houston demonstrated that it can host the world. The next challenge is ensuring it can continue to power one of the fastest-growing economies in North America.

That will require continued investment, thoughtful policy and long-term planning that recognizes energy infrastructure as essential economic infrastructure.

Texas has spent decades leading the world in energy production.

The next opportunity is even greater.

To become the global leader in how energy systems are planned, built and operated for a future defined by artificial intelligence, industrial growth and rapidly evolving consumer demand.

Because the cities that lead tomorrow won't simply generate the most energy.

They'll be the ones best prepared to deliver it where opportunity is growing.

———

Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Trending News