How is energy produced?

ENERGY 101

Energy sources are often categorized as renewable or not, but perhaps a more accurate classification focuses on the type of reaction that converts energy into useful matter. Photo by simpson33/Getty Images

Many think of the Energy Industry as a dichotomy–old vs. new, renewable vs. nonrenewable, good vs. bad. But like most things, energy comes from an array of sources, and each kind has its own unique benefits and challenges. Understanding the multi-faceted identity of currently available energy sources creates an environment in which new ideas for cleaner and more sustainable energy sourcing can proliferate.

At a high level, energy can be broadly categorized by the process of extracting and converting it into a useful form.

Energy Produced from Chemical Reaction

Energy derived from coal, crude oil, natural gas, and biomass is primarily produced as a result of bonds breaking during a chemical reaction. When heated, burned, or fermented, organic matter releases energy, which is converted into mechanical or electrical energy.

These sources can be stored, distributed, and shared relatively easily and do not have to be converted immediately for power consumption. However, the resulting chemical reaction produces environmentally harmful waste products.

Though the processes to extract these organic sources of energy have been refined for many years to achieve reliable and cheap energy, they can be risky and are perceived as invasive to mother nature.

According to the 2022 bp Statistical Review of World Energy, approximately 50% of the world’s energy consumption comes from petroleum and natural gas; another 25% from coal. Though there was a small decline in demand for oil from 2019 to 2021, the overall demand for fossil fuels remained unchanged during the same time frame, mostly due to the increase in natural gas and coal consumption.

Energy Produced from Mechanical Reaction

Energy captured from the earth’s heat or the movement of wind and water results from the mechanical processes enabled by the turning of turbines in source-rich environments. These turbines spin to produce electricity inside a generator.

Solar energy does not require the use of a generator but produces electricity due to the release of electrons from the semiconducting materials found on a solar panel. The electricity produced by geothermal, wind, solar, and hydropower is then converted from direct current to alternating current electricity.

Electricity is most useful for immediate consumption, as storage requires the use of batteries–a process that turns electrical energy into chemical energy that can then be accessed in much the same way that coal, crude oil, natural gas, and biomass produce energy.

Energy Produced from a Combination of Reactions

Hydrogen energy comes from a unique blend of both electrical and chemical energy processes. Despite hydrogen being the most abundant element on earth, it is rarely found on its own, requiring a two-step process to extract and convert energy into a usable form. Hydrogen is primarily produced as a by-product of fossil fuels, with its own set of emissions challenges related to separating the hydrogen from the hydrocarbons.

Many use electrolysis to separate hydrogen from other elements before performing a chemical reaction to create electrical energy inside of a contained fuel cell. The electrolysis process is certainly a more environmentally-friendly solution, but there are still great risks with hydrogen energy–it is highly flammable, and its general energy output is less than that of other electricity-generating methods.

Energy Produced from Nuclear Reaction

Finally, energy originating from the splitting of an atom’s nucleus, mostly through nuclear fission, is yet another way to produce energy. A large volume of heat is released when an atom is bombarded by neutrons in a nuclear power plant, which is then converted to electrical energy.

This process also produces a particularly sensitive by-product known as radiation, and with it, radioactive waste. The proper handling of radiation and radioactive waste is of utmost concern, as its effects can be incredibly damaging to the environment surrounding a nuclear power plant.

Nuclear fission produces minimal carbon, so nuclear energy is oft considered environmentally safe–as long as strict protocols are followed to ensure proper storage and disposal of radiation and radioactive waste.

Nuclear to Mechanical to Chemical?

Interestingly enough, the Earth’s heat comes from the decay of radioactive materials in the Earth’s core, loosely linking nuclear power production back to geothermal energy production.

It’s also clear the conversion of energy into electricity is the cleanest option for the environment, yet adequate infrastructure remains limited in supply and accessibility. If not consumed immediately as electricity, energy is thus converted into a chemical form for the convenience of storage and distribution it provides.

Perhaps the expertise and talent of Houstonians serving the flourishing academic and industrial sectors of energy development will soon resolve many of our current energy challenges by exploring further the circular dynamic of the energy environment. Be sure to check out our Events Page to find the networking event that best serves your interest in the Energy Transition.


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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

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UH report projects $1T in new midstream infrastructure needed to power AI era

midstream report

A new study from the University of Houston estimates that the U.S. will need more than $1 trillion in new midstream energy infrastructure investment by 2052 to meet the rising energy demands from data centers in the age of artificial intelligence.

According to the report, this would average $40 billion to $48 billion per year across investments in natural gas, oil, natural gas liquids, hydrogen and CO2 infrastructure.

UH, in collaboration with the INGAA Foundation and Wood and ESMIA Consultants, released the 2025 North American Midstream Infrastructure Report, which details the needs, pipelines and associated infrastructure necessary to meet global market needs and increased energy demands. UH led the consortium that conducted the analysis. Paul Doucette, hydrogen program officer at UH, served as the principal investigator of the report.

According to the U.S. Department of Energy, data center energy consumption could reach 800 terawatt-hours annually by 2050, a roughly 167 percent increase from 300 terawatt-hours in 2025. Meanwhile, electricity generation from all energy sources is projected to reach 5,858 terawatt-hours in 2052, a 27 percent increase over current levels.

The report proposes two routes to meeting this level of demand.

The first scenario is a reference case based on current federal, state and provincial policies as of April 1, 2025. The second option presents a low-carbon scenario. The report concludes that natural gas would need to remain a “foundational component of the region’s energy system” in both scenarios.

“Meeting energy demand is a critical challenge right now, and this report quantifies the necessary midstream infrastructure and corresponding development dollars needed to meet that demand,” Hebe Shaw, executive director of the INGAA Foundation, said in a news release. “Meeting the energy needs of North America will require sustained investment and development, which must begin now to ensure a safe, reliable and affordable energy system.”

The report also identified several key midstream infrastructure requirements, including:

  • 103,000 miles of new natural gas gathering pipelines
  • 37,000 miles of additional natural gas transmission pipelines, which includes approximately 33,800 miles in the United States
  • 24 million jobs over 25 years

The report adds that hydrogen, carbon capture, utilization, and storage (CCUS), and other decarbonization strategies can help meet infrastructure needs.

UH released a condensed version of the report here.

10+ must-attend Houston energy events happening in Q3 2026

Must-attend meetings

Editor's note: Q3 is here, and with it, a full slate of must-attend events for Houston energy professionals. On the agenda are exciting exhibitions, expos, week-long happenings, and more. Mark your calendars for these top Houston energy transition events taking place July to September 2026, and begin registering today. Please note: this article may be updated to include additional events.

July 15-16: Downstream USA Conference & Exhibition

Now in its 14th year, Reuters Events: Downstream USA 2026 brings together 3,000+ decision‑makers from refining, chemicals, petrochemicals, EPCs, technology providers, and more. Join the industry’s largest and most influential downstream gathering, which features more than 160 exhibition spaces to connect owner-operators and solution providers through interactive, peer-led session formats and onstage discussions.

This event begins July 15 at George R. Brown Convention Center. Register here.

July 24: Chevron Innovation Competition

The University of Houston presents the 5th Annual Chevron Innovation Commercialization Competition, a dynamic event that empowers students to transform cutting-edge energy research into real-world solutions. This event is sponsored by Chevron and coordinated by UH Energy.

The elimination round takes place July 24 at 2 pm. Find details here.

August 17-20: IMAGE '26

Co-hosted by SEG and AAPG, the International Meeting for Applied Geoscience and Energy event (IMAGE '26) is the world’s premier gathering for geoscientists, energy professionals, and industry leaders to connect and innovate. A global audience from all sectors of geosciences and energy come together in Houston to collaborate and network through a comprehensive technical program with more than 1,100 presentations, engaging panel discussions, hands-on workshops and courses, and a unique exhibition experience.

This event begins August 17 at George R. Brown Convention Center. Register here.

August 18-19: AVEVA Day Energy & EPC

AVEVA Day Energy & EPC brings together 400+ leaders and experts from the oil & gas, energy, chemicals, and EPC industries. Attendees will connect with peers facing similar challenges, learn from real customer stories, and discover how companies are accelerating operations with AI and industrial intelligence.

This event begins August 18 at Westin Houston Memorial City. Register here.

August 26-27: Texas Energy Forum 2026

Organized by U.S. Energy Stream, the 2026 conference will focuses on the theme, "AI Runs on Texas Energy: How Texas and Alberta Are Powering the AI Revolution." The forum brings together U.S. Senators, members of Congress, senior government officials, and leaders from the energy, technology, manufacturing, and financial sectors for candid discussions on the energy, infrastructure, and technological advancements required to power the AI revolution and strengthen American competitiveness.

This event begins August 26 at the Petroleum Club of Houston. Register here.

September 13-18: Houston Energy & Climate Week

Houston Energy & Climate Week is a six-day gathering that welcomes an unparalleled selection of global energy leaders and communities to the energy capital of the world for a full slate of events, from tech tours and networking to a climatetech summit and digital symposium.

This event kicks off September 13 and continues for six days. Find details here.

September 14-18 Houston Energy + Climate Startup Week

Launched in 2024, the official Houston Energy and Climate Startup Week returns for its third year, showcasing how Houston is developing and scaling real solutions by meeting growing global energy demand while reducing carbon emissions. Join leading energy and climate venture capital investors, industry leaders, and startups from around the world for this showcase of the most innovative companies and technologies that are transforming the energy industry while driving a sustainable, low-carbon energy future.

This event kicks off September 14 and continues all week. Find details here.

September 20-23: 2026 Geothermal Rising Conference

Geothermal Rising Conference is the industry’s flagship annual conference, reflecting the global nature of the geothermal industry while highlighting the width and breadth of the community. The conference offers technical, policy, and market sessions, educational seminars, tours of geothermal and renewable energy projects, and numerous networking opportunities. An additional expo showcases projects, services, and state-of-the-art technology and equipment for the geothermal community.

This event begins September 20 at Marriott Marquis Houston. Register here.

September 22-23: 2026 API Offshore Safe Lifting Conference & Expo

The 2026 API Offshore Safe Lifting Conference & Expo is your opportunity to see the latest offshore developments while sharing experiences, practices, and even information on real-life incidents. The 2026 program features two full days of technical sessions, regulatory insights, and networking focused on advancing offshore lifting safety, with keynotes, emerging technologies, and multiple networking opportunities.

This event begins September 22 at the Royal Sonesta Houston Galleria. Register here.

September 22-24: Intelligent Asset Management in Energy Summit

The Intelligent Asset Management in Energy Summit is the premier North American event dedicated to helping energy leaders unlock the full potential of their assets through advanced analytics, predictive maintenance, and integrated digital strategies. The 2026 summit will cover how innovative asset management solutions can reduce downtime, optimize performance, and deliver measurable ROI in a rapidly evolving energy landscape.

This event begins September 22 at Norris Conference Center. Register here.

Houston startup secures $5M to turn oilfield wastewater into critical minerals

fresh funding

Houston-based startup Altillion has secured $5 million in seed funding to accelerate the commercialization of its proprietary IRIS and ALIX technologies, which convert oilfield-produced water into valuable minerals.

San Francisco-based EIC Rose Rock and Houston-based Flathead Forge led the round. Altillion says the funding will go toward pilot facilities and commercial deployments as the company looks to scale in the U.S.

“Altillion’s efficient and scalable technologies are needed more than ever to reshape critical mineral recovery and facilitate beneficial use of oilfield brines,” Jay Keener, Altillion’s CEO and co-founder, said in a news release. “We’re uniquely positioned to provide a stable, domestic supply of the critical minerals needed for electronics, batteries, healthcare and national defense technologies. This investment from EIC Rose Rock and Flathead Forge enables us to strategically accelerate this impact and is very timely given the current geopolitical dynamics.”

Altillion's IRIS and ALIX platforms extract minerals like iodine, lithium and copper from oilfield-produced water, geothermal brines and salars. This process allows companies to unlock new sources of revenue while also boosting the domestic critical minerals supply chain. The company announced earlier this summer that it will launch a feasibility project in the Permian Basin and aims to develop a path to commercial-scale implementation in the field.

“We are excited to partner with Altillion to scale and deploy these world-class technologies to access the vast wealth hidden in wastewater,” David Clouse, Managing Director of EIC Rose Rock, added in the release. “With Altillion, we’re expanding our ability to empower the energy industry to domestically source the critical minerals America needs for a robust economy and supply chain.”

Altillion was founded by Keener and COO Scott Buckwald in 2023. Keener previously founded KDH Trading, where Buckwald also serves as COO, according to his LinkedIn page.