Extreme weather in Texas is not only increasing but also becoming more hazardous for communities, infrastructure, and the economy. Photo by Jarosław Kwoczała on Unsplash

Earth’s third-warmest year on record occurred in 2025, reinforcing a decades-long pattern of rising global temperatures. This warming trend is increasingly reflected in regional weather patterns across the United States, particularly in Texas, where hotter summers, prolonged droughts, and heavier rainfall events are becoming more common.

A 2024 report from Texas A&M University highlights how these shifts are already reshaping weather conditions across the Lone Star State. The assessment analyzes climate and weather data from 1900 through 2023 and projects likely trends through 2036.

Its findings suggest that extreme weather in Texas is not only increasing but also becoming more hazardous for communities, infrastructure, and the economy.

A Rise in Extreme Heat
One of the most dramatic changes is the increasing frequency of extreme heat events. Summer temperatures in Texas have climbed back to levels not seen since the early 20th century, and projections suggest they will exceed those historic highs within the next decade.

Triple-digit temperatures are becoming far more common. In the 1970s and 1980s, most parts of Texas experienced relatively few days above 100°F in a typical year. By 2036, those days are expected to occur about four times as often, especially across North, Central, and West Texas.

Houston reflects that broader trend. Five of the 10 years with the most 100-degree days on record in the city have occurred since 2000, according to records dating back to the late 1880s.

The summer of 2023 was Houston’s hottest on record, surpassing even the historic heat of 2011. While short-term cold snaps still occur, climate data suggests extreme summer heat will become more frequent in the years ahead.

Heat waves are also starting earlier in the year and lasting longer. As of 2024, the average length of heat-wave season in the United States has increased by 46 days since the 1960s. Their frequency has also increased steadily, rising from an average of two heat waves per year in the 1960s to about six per year in the 2010s and 2020s.

Energy Grid Strain
Heat waves occurring earlier in the year and more intensely place increasing pressure on the state’s electricity system. When temperatures spike early in the summer, households and businesses simultaneously increase air-conditioning use, pushing electricity demand close to record levels.

In recent summers, record-breaking electricity demand has repeatedly tested grid capacity. Energy experts warn that if heat extremes continue to intensify, maintaining grid reliability will require expanded generation capacity, improved energy efficiency, and greater integration of renewable energy and battery storage. Fortunately, Texas has already made strides in these areas of concern.

Texas continues to lead the nation in clean energy adoption and grid modernization, particularly in wind and solar power. With more than 40,000 megawatts (MW) of wind capacity, the state ranks first in the country in wind-powered electricity generation, supplying up to 35% when blowing and as low as 0%. Much of this growth was driven by the state’s Renewable Portfolio Standard (RPS), which requires utility companies to develop renewable energy in proportion to their market share. The policy originally set a goal of generating 10,000 MW of renewable capacity by 2025, but Texas surpassed this target years ahead of schedule due to rapid investment and expansion.

Solar energy is also growing quickly. Texas has officially overtaken California as the country’s. leader in utility-scale solar, according to recently released data from the U.S. Energy Information Administration. With over 37 GW of capacity, Texas now leads in new solar installations, supported by large-scale solar farm development and favorable policies that continue to diversify the state’s energy mix.

To build a more resilient and cost-effective power system, Texas is working to integrate wind and solar generation while strengthening grid reliability. Efforts include regulatory reforms, mandates for improved power infrastructure, and the deployment of renewable energy storage solutions. A recent report from the Solar Energy Industries Association indicates that Texas is on track to surpass California this year as the nation’s leader in energy storage capacity, driven largely by the rapid growth of battery storage facilities across the state. Alongside renewable expansion, the state also added 3,410 MW of natural gas–fueled power in 2024 to support growing electricity demand.

Economic Consequences
Extreme heat also has measurable economic impacts. For every 1-degree increase in the average summer temperature, Texas’ annual nominal GDP growth rate slows by about 0.4 percentage points. Because Texas already experiences hotter summers than most of the country, rising temperatures affect the state’s economic growth about twice as much as they do in the rest of the United States. Additional warming compounds the strain on productivity, infrastructure, and energy costs.

Some industries are more sensitive to heat than others. Construction, agriculture, manufacturing, and outdoor services often experience productivity losses during prolonged heat waves.

The effects were already visible during the record-breaking summer of 2023, when cities such as Houston, Dallas, and El Paso experienced prolonged stretches of triple-digit temperatures. Surveys conducted by the Federal Reserve Bank of Dallas found that roughly one-quarter of businesses responding to the Texas Business Outlook Surveys reported reduced revenue or production because of the heat.

The hardest-hit sector was leisure and hospitality, where outdoor activities and tourism often decline during extreme temperatures. However, businesses across manufacturing, retail, and services also reported disruptions.

Environmental and Infrastructure Stress
In addition to heat, there are growing risks related to drought, wildfire conditions, and urban flooding.

Extended heat waves tend to worsen drought conditions by increasing evaporation and reducing soil moisture. Lower water levels in lakes and reservoirs can lead to water restrictions for cities and agricultural producers, especially in regions that rely heavily on surface water supplies.

Dry conditions also increase the likelihood of wildfires, particularly across West Texas and the Hill Country. Strong winds, dry vegetation, and extreme heat can quickly turn small fires into fast-moving blazes that threaten homes, infrastructure, and ecosystems.

At the same time, Texas is experiencing an increase in severe rainfall events, which can overwhelm drainage systems in rapidly growing urban areas. Cities with large amounts of pavement and development are especially vulnerable to flash flooding when heavy rain falls in short bursts.

Along the Gulf Coast, rising sea levels are adding another layer of risk. Communities near Galveston Bay and other low-lying coastal areas face increasing threats from storm surge and high-tide flooding.

Preparing for a Hotter Future
Climate experts emphasize that over the next decade, Texans are likely to face more frequent heat waves, higher energy demand, and greater environmental stress.

Adapting to these changes will require a range of responses, including strengthening infrastructure, expanding water management strategies, improving urban planning, and enhancing emergency preparedness for extreme heat and flooding.

While the challenges are significant, understanding these trends now gives policymakers, businesses, and communities time to prepare. As the state’s population and economy continue to grow, resilience to extreme weather is an increasingly important priority for Texas in the years ahead.

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

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Woodside Energy names new CEO with sustainability focus

new leader

Woodside Energy has officially named Elizabeth Westcott as its new managing director and CEO.

Westcott has served as the company's acting CEO since Meg O'Neill stepped down in December 2025. Woodside is headquartered in Australia with its global operations based in Houston.

Before joining Woodside as executive vice president of Australian Operations in 2023, Westcott served as COO at EnergyAustralia. She has also held leadership roles at ExxonMobil and Adriatic LNG.

At Woodside, she has overseen the $12.5 Scarborough Energy Project, which the company says is expected to be one of the lowest-carbon-intensity sources of LNG, as well as other major projects and initiatives.

“My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects," Westcott said in a news release. “I look forward to working closely with the Board and Woodside’s strong leadership team to continue building a leading global energy company that delivers long-term value for shareholders, underpinned by a consistent focus on sustainability and high performance.”

Woodside Chair Richard Goyder added that Westcott was the top choice for the role.

“Liz’s proven track record of outstanding strategic leadership and disciplined delivery distinguished her as the Board’s top candidate for this role," Goyder said. “Liz’s extensive industry experience and strategic vision will be invaluable in leading Woodside at this significant moment in its history.”

Earlier this month, Westcott spoke on how sustainability is a priority for Woodside.

"Put simply, sustainable business is good business ... Because strong sustainability performance is not only the right thing to do. It also drives long-term value by helping to de-risk our business, secure future opportunities and support a compelling value proposition for investors," she said in her 2026 sustainability briefing.

Westcott called attention to the company's Beaumont New Ammonia project. The company acquired the Texas-based clean ammonia project in 204 for $2.35 billion. Production of lower‑carbon ammonia was initially expected sometime this year, but Westcott shared that delivery has been pushed back due to construction delays.

Read Westcott's full suitability briefing here.

30+ CERAWeek events featuring Houston energy leaders

where to be

CERAWeek returns to Houston March 23-27, bringing more than 1,000 speakers, executives and energy innovators to Houston.

Under this year's theme, "Convergence and Competition: Energy, Technology and Geopolitics,” panels will tackle topics ranging from policy and global relations to the growing role of AI in the energy sector. Most of the innovation-themed events are organized under the Agora track and will feature many Houston-area startups, universities, companies and scientists. Panels will feature leaders from Fortune 500 companies and top U.S. government officials, scientists and founders pushing towards a more carbon-neutral future.

Here are some of the many events featuring Houston leaders on the Agora track you can't miss if you want to learn more about Houston energy innovation.

Monday, March 23rd


Scaling Innovation: Building the ecosystem for the next energy breakthroughs

Featuring: Georgina Campbell Flatter, CEO of Greentown Labs

This event is at 10:30 a.m. Find more info here

Vaulted Deep | The Subsurface as Waste and Carbon Infrastructure

Featuring: Julia Reichelstein, co-founder and CEO of Vaulted Deep

This event is at 11:30 a.m. Find more info here

Collaboration Spotlight | Collision Course: How Houston's Ion District turns proximity into innovation

Featuring: Adrian Tromel, chief innovation officer at Rice University; Rawand Rasheed, co-founder and CEO of Helix Earth Technologies; Marc Davidson, senior technical advisor at Veriten

This event is at 1:30 p.m. Find more info here.

Methane Reduction in Practice: Field learnings

Featuring: Matt Kolesar, chief environmental scientist at ExxonMobil

This event is at 2 p.m. Find more info here.

Time-to-AI: Shrinking the data-center clock

Featuring: Robert Ott, vice president of wholesale origination at NRG Energy; Andrew Johnston, business line director, data centers at SLB

This event is at 2:30 p.m. Find more info here.

Scaling CCUS: Which industries, regions and funding sources?

Featuring: Gino Thielens, vice president of renewables and energy efficiency at SLB; Ian McIntyre, senior vice president, 1PointFive

This event is at 3 p.m. Find more info here.

Democratization of AI: Redefining where work gets done

Featuring: Rob Crane, technology scouting and venturing manager at SLB

This event is at 3:30 p.m. Find more info here.

Tuesday, March 24th


Syzygy Plasmonics | Affordable, Globally Compliant SAF Using Abundant Biogas Feedstock

Featuring: Trevor Best, CEO and founder of Syzygy Plasmonics

This event is at noon. Find more info here.

Accelerating Idea to Impact: Carving new ways to innovation

Featuring: David Sholl, executive vice president for research at Rice University

This event is at 1 p.m. Find more info here.

NRG | From the Front Lines: A deep dive into grid reliability

Featuring: Matthew Pistner, senior vice president of generation at NRG Energy; Robert Patrick, vice president of development engineering and construction at NRG Energy

This event is at 1:30 p.m. Find more info here.

Energy Efficiency: The industrial advantage

Featuring: Jason Urso, CTO of Honeywell Industrial Automation

This event is at 1:30 p.m. Find more info here.

The CEO Blueprint | Strategy

Featuring: Lorenzo Simonelli, CEO and chairman of Baker Hughes

This event is at 2:55 p.m. Find more info here.

Occidental | Beyond the Technology: Turning direct air capture into CDR credits

Featuring: William Barrett, vice president of product development at 1PointFive

This event is at 3:30 p.m. Find more info here.

Wednesday, March 25th


Innovations in Sustainable Steel

Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

This event is at 9 a.m. Find more info here.

Rice University | The Science of Geologic Carbon Storage

Featuring: Sahar Bakhshian, assistant professor, earth, environmental and planetary sciences at Rice University

This event is at 9:30 a.m. Find more info here.

Sparking Innovation: The impact of interdisciplinary collaboration

Featuring: Marie Contou Carrere, executive director of the Rice Sustainability Institute; Sandy Guitar, executive director of TEX-E

This event is at 10 a.m. Find more info here.

Models of Innovation, Models of Capital

Featuring: Bobby Tudor, chair of Houston Energy Transition Initiative and chairman of the board for Greentown Labs

This event is at 10:30 a.m. Find more info here.

Energy Venture Day and Pitch Competition

This event is at noon. Find more info here. Learn more about the competing teams here.

Baker Hughes | Meeting Industrial and AI-Driven Energy Demand with Flexible, Reliable and Sustainable Power Solutions

Featuring: Daniele Marcucci, industrial power generation product director at Baker Hughes; Florent Rousset, geothermal leader, new energies at Baker Hughes

This event is at noon. Find more info here.

Thursday, March 26th


Mission-driven Minds: How space exploration inspires the next generation of energy innovators

Featuring: Trina Sadberry, head of brand & engagement in the United States at Equinor; Laura Dandridge, corporate affairs advisor at Chevron; Jack Fischer, chief integration officer at Intuitive Machines; Ginger Kerrick Davis, chief strategy officer at Barrios Technology

This event is at 9 a.m. Find more info here.

Rice University | Nature-based Solutions: A focus on biochar and enhanced rock weathering

Featuring: Carrie Masiello, director of the sustainability institute at Rice University; Mark Torres, associate professor, earth, environmental and planetary sciences at Rice University

This event is at 9:30 a.m. Find more info here.

Growing Direct Air Capture

Featuring: Anthony Cottone, resident and general manager at 1PointFive

This event is at 9:30 a.m. Find more info here.

Occidental | Advancement and Growth Opportunities for Enhanced Oil Recovery

Featuring: Vishal Gupta, president and general manager of EOR Ventures at Occidental

This event is at 9:30 a.m. Find more info here.

Geothermal: Charting progress on technological advancements

Featuring: Jonathan Ajo-Franklin, trustee professor, earth, environmental and planetary sciences at Rice University; Florent Rousset, geothermal leader, new energies at Baker Hughes

This event is at 10 a.m. Find more info here.

Newfound Materials | Bridging the Synthesis Gap in AI-Driven Materials Innovation

Featuring: Matt McDermott, founder and CEO of Newfound Materials

This event is at 10 a.m. Find more info here.

Hertha Metals | The Future of Steel Production: Going beyond the blast furnace

Featuring: Laureen Meroueh, founder and CEO of Heartha Metals Inc.

This event is at 11 a.m. Find more info here.

Advanced Materials with Low-Carbon Intensity

Featuring: Matteo Pasquali, director of the Rice Carbon Hub

This event is at 11:30 a.m. Find more info here.

Lessons from the Lab: Common pitfalls of hard tech startups

Featuring: Jeremy Pitts, managing director of Activate Houston

This event is at 11:30 a.m. Find more info here.

TotalEnergies | Accelerating Direct Air Capture

Featuring: Isabelle Betremieux, head of R&T CO2 capture department at TotalEnergies

This event is at 1 p.m. Find more info here.

Spotlight: "NextGen" energy leaders of the future

Featuring: Renu Khator, chancellor and president of the University of Houston

This event is at 3 p.m. Find more info here.

Solidec | On-site, On-demand Production of Essential Chemicals

Featuring: Ryan DuChanois, co-founder and CEO of Solidec

This event is at 3:30 p.m. Find more info here.

Fervo secures $421M in financing for Cape Station construction

fresh funding

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.