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Report: Houston recognized in the top 5 cities for green jobs

Houston ranks in the top five cities for green jobs, which pay on average 21 percent more than other jobs. Photo via Getty Images

Green jobs are generating more green — aka money — for workers in the Houston area.

Personal finance website SmartAsset recently ranked the Houston metro area as the fifth best place in the U.S. for green jobs, which pay an average of 21 percent more than other jobs. The SmartAsset study found that 2.23 percent of workers in the Houston area hold down jobs classified as “green.”

“Houston is known as being an energy hub, especially for oil. So this metro area ranking fifth may surprise some people. However, the green industry is pretty big around Houston, too,” says SmartAsset.

Topping the SmartAsset list is Dallas, followed by Denver; Newark, New Jersey; Oakland, California; and Houston.

The release of the SmartAsset study preceded a new report from the U.S. Department of Energy showing Texas added slightly more than 5,100 jobs in clean energy from 2021 to 2022. That’s a gain of 3.5 percent. Last year, Texas boasted a little over 396,000 jobs in the clean energy sector, the report says.

In the energy sector as a whole, Texas added the most jobs (nearly 51,000) of any state from 2021 to 2022, followed by California (almost 21,200), and Pennsylvania (nearly 15,200), according to the DOE report.

To determine the best places for green jobs, SmartAsset crunched data for the 50 largest U.S. metro areas that included the percentage of workers holding down green jobs, the average earnings for green jobs, and the average green worker’s earnings compared with the average worker’s earnings.

The U.S. Bureau of Labor Statistics supplies two definitions for green jobs:

  • Jobs in businesses that provide goods or provide services benefiting the environment or conserving natural resources.
  • Jobs in which workers’ duties involve making their employers’ processes more environmentally friendly.

The bureau lists these as the 10 highest-paying green jobs (followed by the median annual pay in 2021):

  • Biochemist or biophysicist, $102,270
  • Materials scientist, $100,090
  • Environmental engineer, $96,820
  • Atmospheric scientist, $94,570
  • Hydrologist, $84,030
  • Geoscientist, $83,680
  • Chemist, $79,430
  • Microbiologist, $79,260
  • Environmental scientist, $76,530
  • Conversation scientist, $63,750

Even though many green jobs in the U.S. are in renewable energy, that sector remains smaller than the traditional oil and gas industry, according to a recent report from career website LinkedIn. However, the growth of U.S. job postings in renewable energy (69 percent) surpassed the growth of job postings in the oil and gas industry (57) during the first three months of 2023 compared with the same period in 2022.

Globally, the growing demand for green-job skills is “outpacing the increase in supply, raising the prospect of an imminent green skills shortage,” the LinkedIn report says.

Among the sectors seeking workers with those skills are solar and wind power. Texas tallied almost 11,800 solar energy jobs and nearly 25,500 wind energy jobs in 2021, according to a DOE report.

Some observers believe Texas is positioned to become the world’s clean energy capital — and home to thousands more green jobs — with Houston poised to lead the way.

“Industry leaders believe the [Houston] region’s relatively high concentration of engineering talent, a solid base of support services for complex, large-scale offshore and onshore drilling projects, and legacy oil and gas infrastructure can be leveraged to assist in the energy transition and decarbonization,” the Federal Reserve Bank of Dallas says in a 2022 report.

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A View From HETI

Wood Mackenzie predicts EVs will account for 20 percent of the U.S. personal and commercial vehicle fleet in 2040. Photo via Unsplash

The rise of electric vehicles could spell trouble for Houston’s oil and gas sector, a new report suggests. But the oil and gas industry stands to benefit from potential sluggishness in U.S. adoption of EVs.

If worldwide EV adoption rises as expected, global oil demand could fall by five million barrels per day by 2040, accelerating the closure of about 40 oil refineries, says the report, published by energy research and consulting firm Wood Mackenzie. The firm’s North American hub is in Houston.

Those closures might spell trouble for refinery operators with a sizable Houston-area presence, including BP, ExxonMobil, Marathon, Saudi Aramco, and Valero. In 2025, the five companies collectively earned roughly $33 billion from downstream operations, including refineries. One caveat: Each company assigns a different definition to “downstream.”

Refineries in Organization for Economic Co-operation and Development (OECD) countries, including the U.S. but excluding Middle Eastern heavyweights, “are most at risk due to their high energy costs and carbon prices,” the Wood Mackenzie report says.

On the flip side, an abundant U.S. oil supply means American drivers have less of an incentive to switch from traditional cars to electric vehicles, despite stubbornly high fuel prices, according to the report.

Wood Mackenzie predicts EVs will account for 20 percent of the U.S. personal and commercial vehicle fleet in 2040, up from three percent in 2025. That compares with a global forecast of 25 percent in 2040, up from 4 percent last year.

Another U.S. roadblock to EV adoption cited in the report: the country’s relative lack of advanced battery manufacturing.

“Without advanced battery technologies, the U.S. auto sector is at risk of ceding its home market to non-Chinese EVs and falling behind competitors internationally,” the report says.

Furthermore, according to the report, Chinese investment in EV manufacturing in the U.S. probably will remain a no-go and tariffs on Chinese EV imports likely won’t be lifted, even if Democrats resurrected EV incentives following a White House win in 2028.

“Competition among EV manufacturers in international markets will only intensify,” the report notes. “Companies that can offer competitive products in high-growth markets will be best positioned for long-term success.”

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