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Following years of speculation, Chevron announces HQ move to Houston

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Chevron expects all of its corporate functions to shift to Houston over the next five years. Photo via Getty Images

The Energy Capital of the World is adding another jewel to its corporate crown.

With the impending move of Chevron’s headquarters from Northern California to Houston, the Houston area will be home to 24 Fortune 500 companies. Chevron ranks 15th on this year’s Fortune 500.

Oil and gas giant Chevron, currently based in San Ramon, California, will join three Fortune 500 competitors that already maintain headquarters in the Houston area:

  • Spring-based ExxonMobil, No. 7 on the Fortune 500
  • Houston-based Phillips 66, No. 26 on the Fortune 500
  • Houston-based ConocoPhillips, No. 68 on the Fortune 500

Chevron, which posted revenue of $200.9 billion in 2023, employs about 7,000 people in the Houston area and about 2,000 people in San Ramon. The company says its chairman and CEO, Mike Wirth, and vice chairman, Mark Nelson, will move to Houston before the end of 2024.

In an interview with The Wall Street Journal, Wirth acknowledged Chevron’s differences of opinion with California policymakers regarding energy matters.

“We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers,” Wirth said.

Chevron expects all of its corporate functions to shift to Houston over the next five years. Jobs that support the company’s California operations will remain in San Ramon, where Chevron employs about 2,000 people. Some Chevron employees in San Ramon will relocate to Houston.

The company’s move to Houston hardly comes as a surprise. Speculation about a relocation to Houston intensified after Chevron sold its 98-acre San Ramon headquarters in 2022 and moved corporate employees to leased office space. Over the past several years, Chevron has shifted various corporate functions to Houston.

“This is just the final step that many industry observers were waiting to happen,” Ken Medlock, senior director of the Baker Institute’s Center for Energy Studies at Rice University, says in a news release.

“To start, Houston provides a world-class location for internationally focused energy companies, which is why there is such a massive international presence here,” Medlock adds. “Texas is also the nation’s largest energy producer across multiple energy sources and is poised to lead in emerging opportunities such as hydrogen and carbon capture, so Houston is a great place for domestically focused activities as well.”

The announcement of Chevron’s exit from California comes just a year after ExxonMobil finalized its relocation from Irving to Spring.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, says in a post on the organization’s website.

“With deep roots in our region,” he adds, “Chevron is [a] key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

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Four energy companies are putting their money where their mouths are following Hurricane Beryl. Photo by Brandon Bell/Getty Images

4 Houston energy companies pledge financial support in wake of Hurricane Beryl

donation station

Four major energy companies in the Houston area have chipped in more than $400,000 to support relief efforts for Hurricane Beryl in Southeast Texas. Nationwide, it’s estimated that the storm caused at least $28 billion in damage and economic losses.

Here’s a breakdown of contributions announced by the four energy companies.

Baker Hughes Foundation

The Baker Hughes Foundation, the philanthropic arm of Houston-based energy technology company Baker Hughes, gave a $75,000 grant to the Houston chapter of the American Red Cross for Hurricane Beryl relief efforts.

“We understand recovery and rebuilding can take weeks or months, and we support the American Red Cross’ mission of providing people with clean water, safe shelter, and food when they need them most,” says Lorenzo Simonelli, chairman and CEO of Baker Hughes.

CenterPoint Energy

Houston-based CenterPoint Energy, which at one point had more than 2 million customers without power due to Hurricane Beryl, says its foundation has donated to several disaster relief organizations in the region. These include the American Red Cross of Coastal Bend, Catholic Charities of the Archdiocese of Galveston-Houston, Combined Arms, and the 4B Disaster Response Network in Brazoria and Galveston counties.

As of July 11, the company had also provided:

  • More than 30,000 bottles of water to cooling centers and distribution centers in the Houston area.
  • Meals to local first responders.
  • Mobile power generation at cooling centers, hospitals, senior living centers, and water treatment plants.

CenterPoint didn’t assign a dollar value to its contributions.

“Our first priority is getting the lights back on. At the same time, we have seen firsthand the devastation our neighbors are facing, and our commitment to the community goes beyond restoration efforts,” says Lynnae Wilson, senior vice president of CenterPoint’s electric business.

ConocoPhillips

Houston-based ConocoPhillips contributed $200,000 to relief efforts for Hurricane Beryl. The company also is matching donations from U.S. employees of ConocoPhillips.

The money is being split among the Houston Food Bank, Salvation Army and American Red Cross.

“Houston is our hometown, and many of our employees and neighbors have been impacted by Hurricane Beryl,” says Ryan Lance, chairman and CEO of ConocoPhillip.

Entergy Texas

Entergy Texas, based in The Woodlands, donated $125,000 to the American Red Cross for Hurricane Beryl relief efforts. The money will go toward emergency needs such as food, shelter, and medical care.

“Our commitment to helping communities in distress remains unwavering, and we are hopeful that our contribution will offer relief and comfort to those facing hardships in the storm’s aftermath,” says Eliecer Viamontes, president and CEO of Entergy Texas.

Entergy Texas supplies electricity to about 512,000 customers in 27 counties. It’s a subsidiary of New Orleans-based Entergy Corp.

These Houston energy companies have made it on the list of top employers. Photo via Getty Images

Houston-based energy companies hailed best places to work by U.S. News

Top cos.

More than a dozen Houston-based companies are sharing the spotlight in U.S. News and World Report's collection of the "Best Companies to Work For" in 2024-2025, including several of the Bayou City’s energy companies.

The annual report examines publicly-traded companies around the world to determine the best employers based on six metrics including work-life balance and flexibility; quality of pay and benefits; job and company stability; career opportunities and professional development; and more. The companies were not ranked, but included based on reader surveys and publicly available data about each workplace.

New for the 2024-2025 report, U.S. News analyzed 549 companies across 29 different lists, including the overall best companies list — which includes the best 300 companies across the U.S., the United Kingdom, Ireland, Switzerland, Luxembourg, and Bermuda — 24 industry-specific lists, and four regional lists.

There were 16 total companies based around Houston that made the lists, with the majority being based in the city, while one each were located in Spring and The Woodlands.

Independent energy company Marathon Oil was the top-rated Houston energy employer, with nearly 1,700 employees, an annual revenue stream of $6.38 billion, and a $15.4 billion market cap. The company was specifically highlighted with a "Top Quality of Pay" label, but also boasts high ratings for its employees' work-life balance, job stability, and belongingness.

In addition to being included in the overall "Best Companies" list, Marathon Oil earned recognition in the industry-specific "Best in Energy" list and the "Best Companies in the South" list.

A second Houston-based energy company earning a spot among the top employers is Occidental (also known as Oxy). The petroleum corporation, which has been in operation since 1920, has nearly 12,600 employees and brings in $27,43 billion in revenue every year.

According to U.S. News, Occidental offers many financial, health and wellness, and workplace benefits including 401k matching, tuition assistance, an employee assistance program, flexible work arrangements, and much more. The company was also given a "Top Quality of Pay" designation.

Occidental appeared in U.S. News' "Best in Mining and Raw Materials," the overall "Best Companies," and "Best Companies in the South" lists.

The other top energy employers include:

  • Southwestern Energy Company, Spring – Best in Energy; Best Companies (overall); Best Companies in the South
  • ConocoPhillips – Best in Energy, Best Companies in the South
  • Cheniere – Best in Energy
  • EOG Resources – Best in Energy
  • Murphy Oil Corporation – Best in Energy

"Prospective and current employees understand the significant impact their employer has on their quality of life," said Carly Chase, vice president of careers at U.S. News and World Report, in a release. "Whether a new grad seeking a company to launch their career, an established professional looking for a change or an HR professional researching the strengths of their company and others, Best Companies to Work For provides a central space to see which companies are meeting their employees' needs best.
The full list of the best companies to work for can be found at usnews.com

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This article originally ran on CultureMap.

The deal to combine the two Houston-headquartered companies is valued at $22.5 billion when including $5.4 billion in debt. Photo via conocophillips.com

ConocoPhillips buying Marathon Oil for $17.B in all-stock deal as energy prices rise

M&A moves

ConocoPhillips is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion as energy prices rise and big oil companies reap massive profits.

The deal to combine the two Houston-headquartered companies is valued at $22.5 billion when including $5.4 billion in debt.

Crude prices have jumped more than 12% this year and the cost for a barrel rose above $80 this week. Oil majors put up record profits after Russia's invasion of Ukraine in 2022 and while those numbers have slipped, there has been a surge in mergers between energy companies flush with cash.

Chevron said last year that it was buying Hess in a $53 billion acquisition, though that deal faces headwinds. The company warned the buyout may be in jeopardy because it will require the approval of Exxon Mobil and a Chinese national oil company, which both hold rights to development of an oil field off the coast of the South American nation Guyana where Hess is a big player.

In July of last year, Exxon Mobil said that it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered the business of capturing and storing carbon and stands to benefit from changes in U.S. climate policy. Three months later, Exxon announced the proposed acquisition of shale operator Pioneer Natural Resources for $60 billion.

All of the proposed acquisitions could face pushback from the U.S. which, under the Biden administration, has stepped up antitrust reviews for energy companies and other sectors as well, such as tech.

Federal Trade Commission, which enforces federal antitrust law, asked for additional information from Exxon and Pioneer about their proposed deal. The request is a step the agency takes when reviewing whether a merger could be anticompetitive under U.S. law. Pioneer disclosed the request in a filing in January.

As part of the ConocoPhillips transaction, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock that they own, the companies said Wednesday.

ConocoPhillips said Wednesday that the transaction will add highly desired acreage to its existing U.S. onshore portfolio.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position,” ConocoPhillips Chairman and CEO Ryan Lance said in a prepared statement.

The deal is expected to close in the fourth quarter. It still needs approval from Marathon Oil stockholders.

Separate from the transaction, ConocoPhillips said that it anticipates raising its ordinary dividend by 34% to 78 cents per share starting in the fourth quarter. The company said that once the Marathon Oil deal closes and assuming recent commodity prices, ConocoPhillips plans to buy back more than $7 billion in shares in the first full year. It plans to repurchase more than $20 billion in shares in the first three years.

Shares of ConocoPhillips declined 3.3% before the market open, while Marathon Oil Corp.'s stock rose more than 7%.

At the annual, SUPER DUG Conference & Exhibition 2024 in Fort Worth last week, Texas energy executives weighed in on the progress of the energy transition. Photo by Lindsey Ferrell

Texas energy transition leaders praise progress, call for continued efforts at conference

overheard at SUper dug

Woven in between reflections on the most active consolidation market in recent history, an underlying theme emerged from Hart Energy’s SUPER DUG Conference & Exhibition 2024 in Fort Worth last week. Executives, investors, and analysts conveyed admiration for the emissions reductions achieved across the shales while continuing to meet the growing demand for natural gas.

However, concern for continued investment echoed this praise, as many expressed the need for increased investment to support a world of flourishing population, economics, and technology.

Marshall Adkins, head of energy for Raymond James, shared an analogy demonstrating the energy demand impact from advancements in technology, most notably those sprouting from the widespread adoption of artificial intelligence. Adkins explained that a minimal whole-home generator consumes about 8,500 watts of power; to keep air conditioning, the washing machine, and garage door working results in a pull of approximately 14,000 watts. One single chip from NVIDIA requires that same 14,000 watts plus another 150 percent power for cooling, totaling approximately 35,000 watts — about the same as would completely power an average home as if there were no disruption in supply.

While this volume of power consumption seems hefty, consider that NVIDIA sold over half a million chips in a single quarter last year, and the effect starts to multiply exponentially. And while development of solar and wind power sources will replace most, if not all, of the current energy produced from coal, the stability of the power grid relies predominantly on the continuous stream of natural gas. That is, if the stream of investment into developing and expanding natural gas continues to grow in parallel.

Reflecting on the expectation from public and private investors, as well as upcoming talent, to embrace meaningful advancements in ESG, Will Van Loh, CEO of Quantum Energy Partners, shared the business benefit of greener practices.

“Switching your frac fleet from running diesel to natural gas, we saved one of our companies in the Haynesville half a million dollars per well and reduced GHG by 70 percent. Make a bunch of money and do good for the environment – (that’s a) pretty good deal,” Van Loh told Hart Energy’s editor-in-chief for Oil & Gas Investor, Deon Daugherty.

For decades, the industry has pursued increasingly eco-friendly habits, but the requirements of ESG reporting make it more visible to the rest of the world. Permian Operators, which produce almost half of all US daily oil volume, cited specific strides made in reducing emissions and operating more cleanly during their respective presentations:

  • Leadership from Diamondback Energy spoke about adopting the use of clear drilling fluids in lieu of oil-based mud, resulting in faster drilling times and cleaner operations. The technique came along with the acquisition of QEP Resources in 2021 and reflects the company’s commitment to remaining humble in its pursuit of more efficient and more environmentally beneficial methodologies.
  • Nick McKenna, vice president of the Midland Basin for ConocoPhillips praised their Lower48 team for reducing gas flaring by 80 percent since 2019 while also increasing the use of recycled water over 3x in that same 5-year horizon.
  • Clark Edwards, senior vice president of Development for BPX, cited achieving 95 percent electrification of their Permian well set as of the end of 2023. Building and installing their own microgrid – a practice repeated by numerous operators throughout the Basin, where public infrastructure lags far behind private entity needs – added enough megawatts to their operation to allow BPX to run drilling rigs completely independent of an already strained public grid.

In addition to reducing diesel usage, flaring, and dependence on the public grid for electricity, water management stays a top economic and ecological concern for shale operators all over the United States. While a compelling case of "have and have-not" dominated the shale water business over the last decade-plus, savvy operators increasingly embrace a mindset that water disposal should remain a choice of last resort. Companies like WaterBridge, a Joint Venture with Devon Energy, and Deep Blue, a joint venture with Diamondback Energy, help bring clean and recycled water to areas with shortages, both in and outside of the industry.

As Kaes Van’t Hof, president and CFO of Diamondback Energy, said, “The Midland Basin is now recycling as much water as it possibly can. Eventually it’s going to be about, ‘Water going downhole into a disposal well is the last option.’ Can you recycle it? Can you bring it somewhere else, evaporate it? We’re starting start some early de-sal[ination] tests in the Spanish Trail near the airport. Eventually, can we tell the story that we sell freshwater back to water the golf courses of Midland?”

The Energy Transition steams ahead, but pragmatic observations remind us that oil and gas make up approximately 60 percent of the energy supply today – a volume not easily replaced by any other source completely in the next few years. However, the overwhelming support for delivering the best barrel with the lowest carbon intensity possible permeated Hart Energy’s SUPER DUG Conference & Exhibition 2024.

The Center for Electromechanics at The University of Texas, Frontier Energy, Inc., and GTI Energy celebrated the grand opening of a hydrogen research and demonstration facility in Austin. Photo via utexas.edu

Texas hydrogen research hub opens to support statewide, DOE-backed initiative

hi to hydrogen

A Texas school has cut the ribbon on a new hydrogen-focused research facility that will play a role in a statewide, Department of Energy-funded energy transition initiative.

The Center for Electromechanics at The University of Texas, Frontier Energy, Inc., and GTI Energy celebrated the grand opening of a hydrogen research and demonstration facility in Austin as part of the “Demonstration and Framework for H2@Scale in Texas and Beyond” project, which is supported by the DOE's Hydrogen and Fuel Cell Technologies Office.

The hydrogen proto-hub is first-of-its-kind and part of Texas-wide initiative for a cleaner hydrogen economy and will feature contributions from organizations throughout the state. The facility will generate zero-carbon hydrogen by using water electrolysis powered by solar and wind energy, and steam methane reformation of renewable natural gas from a Texas landfill.

The hydrogen will be used to power a stationary fuel cell for power for the Texas Advanced Computing Center, and it will also supply zero-emission fuel to cell drones and a fleet of Toyota Mirai fuel cell electric vehicles. This method will mark the first time that multiple renewable hydrogen supplies and uses have been networked at one location to show an economical hydrogen ecosystem that is scalable.

“The H2@Scale in Texas project builds on nearly two decades of UT leadership in hydrogen research and development” Michael Lewis, Research Scientist, UT Austin Center for Electromechanics, say in a news release. “With this facility, we aim to provide the educated workforce and the engineering data needed for success. Beyond the current project, the hydrogen research facility is well-positioned for growth and impact in the emerging clean hydrogen industry.”

Over 20 sponsors and industry stakeholders are involved and include Houston-based partners in Center for Houston’s Future and Rice University Baker Institute for Public Policy. Industry heavyweights like Chevron, Toyota, ConocoPhillips, and the Texas Commission on Environmental Quality are also part of the effort.

Texas hydrogen infrastructure and wind and solar resources position the state for clean hydrogen production, as evident in the recently released study, “A Framework for Hydrogen in Texas.” The study was part of a larger effort that started in 2020 with the H2@Scale project, which aims to develop clearer paths to renewable hydrogen as a “clean and cost-effective fuel” according to a news release. The facility will serve as an academic research center, and a model for future large-scale hydrogen deployments.

Participants in the DOE-funded HyVelocity Gulf Coast Hydrogen Hub will aim to gain insights from the H2@Scale project at UT Austin. The project will build towards a development of a comprehensive hydrogen network across the region. HyVelocity is a hub that includes AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted, and Sempra Infrastructure. The GTI Energy administered HyVelocity involves The University of Texas at Austin, the Center for Houston’s Future, and Houston Advanced Research Center.

“H2@Scale isn't just about producing low-carbon energy, it's about creating clean energy growth opportunities for communities throughout Texas and the nation,” Adam Walburger, president of Frontier Energy, says in a news release. “By harnessing renewable energy resources to create zero-carbon hydrogen, we can power homes, businesses, transportation, and agriculture – all while creating jobs and reducing emissions.”

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2 Houston startups join Greentown Labs' BIPOC-led accelerator program

seeing green

Greentown Labs and Browning the Green Space announced the newest cohort for its Advancing Climatetech and Clean Energy Leaders Program, or ACCEL, which works to advance BIPOC-led startups in the climatetech space.

Two Houston companies and one from Austin are among the eight startups to be named to the 2025 group.

“The startups selected for the third ACCEL cohort represent a phenomenal range of energy and climatetech innovations, which underscores our belief that everyone and many solutions must play a role in our community’s collective decarbonization efforts,” Georgina Campbell Flatter, Greentown’s new CEO, said in a release. “We’re proud to welcome these entrepreneurs to our community and eager to see all they’ll achieve throughout the program and beyond!”

Each of the early-stage startups within the cohort will receive $25,000 in non-dilutive grant funding and participate in the year-long program focused on product and technology development, market development, fundraising and management, and team development, according to Greentown. The curriculum is led by VentureWell, a nonprofit with expertise in venture development in climatetech.

The Houston companies include:

  • Carbonext, founded by Olanrewaju Tanimola. The company is leveraging its proprietary, off-the-shelf 3D-graphene technology to develop integrated solutions with carbon-coated silicon anodes to address challenges in the graphite ecosystem, as well as lithium-battery anodes.
  • PLASENE, founded by Sohel Shaikh, Alper Gulludag and Romolo Raciti. The company offers an innovative platform that converts plastic waste into liquid fuel and low-carbon hydrogen through its proprietary catalysts and modular, scalable, pre-engineered units

The remaining six companies are:

  • Inductive Robotics, founded in Austin by Madhav Ayyagari and David Alspaugh. The startup deploys autonomous robots that deliver EV charging directly to parked vehicles in commercial parking facilities, using a subscription-based model.
  • Andros Innovations, founded in Cambridge, Massachusetts by Laron Burrows. The startup has developed a reactor that produces ammonia more cheaply, cleanly and safely than traditional methods do.
  • FAST Metals, founded in Worcester, Massachusetts by Sumedh Gostu and Anthony Staley. It has developed a hydrometallurgical-recovery process capable of extracting iron, aluminum, scandium, titanium, and other rare-earth elements from industrial tailings.
  • Respire Energy, founded in Boston by Dave Hsu, Xiaowei Teng, and Candy Wong. The energy storage startup has developed a safe, low-cost, and long-duration metal-air battery designed for microgrids.
  • Tato Labs, founded in Brooklyn by Mecca McDonald and Mia Dunn. It is developing scalable, innovative, bioplastic products and packaging solutions that leverage potato starch, protect and preserve the natural ecosystem, and minimize plastic waste.
  • Thola, founded in Portland, Maine, by Nneile Nkholise and Lerato Takana. The company provides an on-demand marketplace for commercial-building sustainability and safety management, with a mission to decarbonize old buildings.

ACCEL is supported by the Massachusetts Clean Energy Center (MassCEC), Shell, Equinor, the Growth Capital Division of MassDevelopment, Microsoft and the Barr Foundation.

The accelerator has supported 13 early-stage startups since it was founded in 2023, resulting in $325,000 in grant funding. Houston companies have been represented in each cohort. Click here to see the 2024 cohort and here to see the inaugural 2023 cohort.

Houston oil and gas producer expands into renewables, announces new Baytown facility

Renewables News

Houston American Energy Corp. (NYSE: HUSA), an oil and gas exploration and production company, has entered into a definitive agreement to acquire New York-based Abundia Global Impact Group LLC, which specializes in converting waste into high-value fuels and chemicals.

HUSA is expected to close on the AGIG acquisition early in the second quarter and says the deal aims to provide value through “innovation in the renewable energy sector,” according to a news release.

As part of the deal, HUSA will acquire 100% of AGIG’s issued and outstanding units. HUSA will also issue to AGIG’s members a number of shares of HUSA common stock that will equal 94 percent of HUSA’s aggregate issued and outstanding common stock at the time of the closing. The company also closed a $4.42 million registered direct offering in January.

“AGIG has developed a commercially ready project for converting waste into valuable fuels and chemicals, and this transaction gives HUSA shareholders a ready-made platform and project pipeline for future value generation,” Peter Longo, CEO of Houston American Energy Corp, said in a news release. “We are witnessing the growing momentum of the fuel and chemical industry’s transformation into alternative solutions like recycled chemical alternatives and the highly publicized sustainable aviation fuel market.”

AGIG will build its first advanced plastic recycling facility in the Cedar Port Industrial Park in the Baytown area of Houston. The facility will represent the first phase of a growth plan aimed at scaling AGIG’s technologies for producing renewable fuels and chemicals from waste, according to the company. The Cedar Port facility will serve as a hub for a five-year development plan and will be designed to scale production capacity.

"We are excited to use this platform to support the deployment and development of our suite of technologies that will assist in the evolution of fuel, chemical and waste markets, providing commercial alternatives and sustainable products,” AGIG CEO Ed Gillespie said in a news release.

Supreme Court confronts what to do with growing pile of nuclear waste

The Debate Continues

The Supreme Court will hear arguments Wednesday in a fight over plans to store nuclear waste at sites in rural Texas and New Mexico.President Joe Biden's administration and a private company with a license for the Texas facility appealed a ruling by the 5th U.S. Circuit Court of Appeals that found that the Nuclear Regulatory Commission exceeded its authority in granting the license. The outcome of the case will affect plans for a similar facility in New Mexico roughly 40 miles away.

On this issue, President Donald Trump's administration is sticking with the views of its predecessor, even with Texas Gov. Greg Abbott, a Republican ally of Trump, on the other side.

The push for temporary storage sites is part of the complicated politics of the nation’s so far futile quest for a permanent underground storage facility.

Here's what to know about the case.

Where is spent nuclear fuel stored now?

Roughly 100,000 tons of spent fuel, some of it dating from the 1980s, is piling up at current and former nuclear plant sites nationwide and growing by more than 2,000 tons a year. The waste was meant to be kept there temporarily before being deposited deep underground.

A plan to build a national storage facility northwest of Las Vegas at Yucca Mountain has been mothballed because of staunch opposition from most Nevada residents and officials.

The Nuclear Regulatory Commission has said that the temporary storage sites are needed because existing nuclear plants are running out of room. The presence of the spent fuel also complicates plans to decommission some plants, the Justice Department said in court papers.

Where would it go?

The NRC granted the Texas license to Interim Storage Partners LLC for a facility that could take up to 5,000 metric tons of spent nuclear fuel rods from power plants and 231 million tons of other radioactive waste. The facility would be built next to an existing dump site in Andrews County for low-level waste, such as protective clothing and other material that has been exposed to radioactivity. The Andrews County site is about 350 miles west of Dallas, near the Texas-New Mexico state line.

The New Mexico facility would be in Lea County, in the southeastern part of the state near Carlsbad. The NRC gave a license for the site to Holtec International.

The licenses would allow for 40 years of storage, although opponents contend the facilities would be open indefinitely because of the impasse over permanent storage.

Political opposition is bipartisan

Republicans and Democrats, environmental groups and the oil and gas industry all oppose the temporary sites.

Abbott is leading Texas' opposition to the storage facility. New Mexico Democratic Gov. Michelle Lujan Grisham also is opposed to the facility planned for her state.

A brief led by Republican Texas Sen. Ted Cruz on behalf of several lawmakers calls the nuclear waste contemplated for the two facilities an “enticing target for terrorists” and argues it's too risky to build the facility atop the Permian Basin, the giant oil and natural gas region that straddles Texas and New Mexico.

Elected leaders of communities on the routes the spent fuel likely would take to New Mexico and Texas also are opposed.

What are the issues before the court?

The justices will consider whether, as the NRC argues, the states forfeited their right to object to the licensing decisions because they declined to join in the commission’s proceedings.

Two other federal appeals courts, in Denver and Washington, that weighed the same issue ruled for the agency. Only the 5th Circuit allowed the cases to proceed.

The second issue is whether federal law allows the commission to license temporary storage sites. Opponents are relying on a 2022 Supreme Court decision that held that Congress must act with specificity when it wants to give an agency the authority to regulate on an issue of major national significance. In ruling for Texas, the 5th Circuit agreed that what to do with the nation’s nuclear waste is the sort of “major question” that Congress must speak to directly.

But the Justice Department has argued that the commission has long-standing authority to deal with nuclear waste reaching back to the 1954 Atomic Energy Act.

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