Houston's energy workforce is at a crossroads of industry challenges and AI opportunities

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This Houston AI expert is calling the city's business leaders to step up when it comes to AI. Photo via Getty Images

Houston's industrial and energy landscapes are at a pivotal juncture. We're witnessing an undeniable gap in technical expertise that's hard to ignore. At the same time, there's a rising wave of artificial intelligence-driven solutions that could be the answer we've been searching for.

The expertise shortfall

Our city has always been the pulse of the energy and industrial sectors. We've grown, we've innovated, and we've set benchmarks for the world. But as we steer ahead, a pressing concern looms large: the dwindling pool of technical expertise. This isn't about not having enough hands-on deck; it's about not having the right hands to navigate our industries' intricate machinery and complex systems. Pipelines, refineries, renewable energy solutions – these are the cornerstones of Houston's legacy, and we need adept professionals to keep pushing boundaries.

AI: The game changer

But here's the thing: Houston isn't just the hub of traditional energy and industrial operations. We're sitting on a goldmine of data, real-world use cases, and the drive to innovate. Enter AI. It's not just tech jargon; it's a tool with untapped potential, waiting to be harnessed.

We have the industry foundation, the data reservoirs, and the prime use cases that make AI not just viable, but indispensable. Houston is uniquely positioned to lead this AI revolution. We're not just talking about implementing AI; we're talking about innovating with AI, tailoring it to our city's and our industry’s needs, and setting a precedent for the global stage. This is where the challenge meets opportunity. We have what it takes to mold AI solutions that can fill the expertise gap and propel our industries to new heights.

Houston's call to action

If there's any city poised to be the epicenter of AI, it's Houston. We've always been pioneers, and this is our chance to solidify our position as global leaders once again. Houston has everything: the industries, the data, the use cases, and most importantly, the ambition. The question isn't whether we can usher in an era of AI-enhanced operations; it's how swiftly we can do it.

Our city is on the brink of something monumental. It's time we leverage AI to not just bridge the expertise gap but to create an industrial future that's resilient, innovative, and unparalleled. So, to industry leaders, stakeholders, and visionaries, here's the pitch: Houston's at a crossroads, and the path we choose now will shape our legacy for decades. It's time we lean into AI, harness its potential, and ensure that our city remains the powerhouse it's always been.

However, this one question remains: Are you, this city's industry leaders, ready to redefine Houston's legacy in the face of an expertise challenge, or will you stick to the status quo and risk stagnation?

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Marty Dytrych is the co-founder and CEO of Industrial Data Labs. This article originally ran on InnovationMap.

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Baker Hughes signs deal to install 500 MW of geothermal power

geothermal growth

Baker Hughes has made a deal to further expand its geothermal operations.

The Houston-based energy giant has signed an agreement with Mantle Reach Power to develop geothermal energy projects across North America. The companies say they aim to install up to 500 megawatts of geothermal power in the next five years, according to a news release.

Through the new agreement, Baker Hughes will provide subsurface technology and solutions while Mantle Reach Power will lead project development, ownership and financing. Mantle Reach Power is a geothermal development company backed by the $47 billion EnCap Energy Transition Fund III.

According to the release, the deal aims to help solve one of geothermal energy's fundamental problems by aligning capital with expertise and technology, and enhancing "pre-construction bankability."

“Geothermal is a clean power solution that is proving to be a vital contributor to advancing sustainable energy development, with incredible potential to enhance U.S. energy security, support digital infrastructure, and ensure energy remains accessible and affordable ... Today’s announcement celebrates the commercial architecture the industry has been missing: a repeatable, financeable model that can be deployed at the speed and scale to meet global energy demands,” Baker Hughes Chairman and CEO Lorenzo Simonelli said in the news release.

“Integrating Baker Hughes’ subsurface-to-surface expertise with our capabilities in project development, finance, and execution positions Mantle Reach Power to commercialize geothermal assets at scale,” Nick Karambelas, CEO of Mantle Reach Power, added in the release. “This structure provides the construction and operating certainty necessary to access conventional project financing and accelerate our growth as an independent power producer.”

Baker Hughes has launched multiple geothermal partnerships in recent months. The company announced a deal with Oklahoma-based Helmerich & Payne Inc. (H&P) in May to develop a geothermal rig, where H&P will provide a geothermal-capable land drilling rig and Baker Hughes will contribute technology.

In March, the company announced support for XGS’s geothermal extraction projects in New Mexico, which are being used to meet the increasing demands of data centers in the state. Last year, Fervo Energy selected Baker Hughes to supply equipment for its flagship geothermal project in Utah.

ENGIE strikes clean energy deal with Houston biomanufacturer

energy match

ENGIE North America has signed an agreement with Aker BioMarine to supply around-the-clock, Texas-sourced clean energy to the Norwegian company's Houston manufacturing facility.

The deal is through ENGIE's 24/7 offering, which allows users to "match electricity consumption with local renewable generation on an hourly basis," rather than annual renewable energy matching, according to a news release.

Houston-based ENGIE NA will match 90% of Aker BioMarine's hourly electricity consumption at its Houston facility through renewable energy certificates that link electricity consumed to clean power generated. The renewable energy will be sourced largely from ENGIE's Impact Solar Project in Lamar County, Texas.

“Working with companies that have made sustainability a core part of their strategy is essential to delivering meaningful progress,” Taymur Bunkheila, regional VP and retail supply lead for ENGIE’s U.S. 24/7 product, said in the release. “By aligning energy solutions with operational needs, we can help organizations improve transparency, strengthen accountability, and deliver measurable outcomes. This agreement demonstrates how companies can take practical steps today while building toward long-term sustainability objectives.”

Aker BioMarine, which develops sustainable marine-based ingredients, processes the majority of its krill and algae products at its Houston facility. The company says the deal with ENGIE marks an important step in reducing the environmental footprint of its operations.

“Through this agreement, we expect to reduce our Scope 2 emissions, marking an important milestone in our broader sustainability journey,” Matts Johansen, CEO at Aker BioMarine, added in the release. “ENGIE has delivered an affordable, innovative and transparent solution that allows us to match our electricity consumption for our Houston manufacturing facility with renewable power generation. The transparent data ENGIE provides strengthens our climate reporting while helping us continue delivering high-quality products with a lower environmental footprint."

ENGIE has more than 11 gigawatts of renewable energy projects in operation or under construction in the U.S. and Canada. The company is targeting 95 gigawatts by 2030

ExxonMobil announces date to move legal headquarters to Texas

save the date

Energy giant Exxon Mobil Corp. has set a date to move its legal headquarters to Texas.

The Spring-based company announced this week that the redomiciliation from New Jersey to Texas is expected to be effective July 1. Exxon's board of directors unanimously recommended redomiciling in the Lone Star State in March, and shareholders approved the move to Texas at the company’s annual meeting in May.

As part of the move, ExxonMobil Holdings Corp. will replace Exxon Mobil Corp. of New Jersey and become the publicly traded parent company. Exxon reports that its shares will continue to trade on the New York Stock Exchange under the ticker symbol “XOM,” and that shareholders do not need to take action.

At the time of the recommendation, Exxon said the move would not affect business operations, management, strategy, assets or employee locations.

Exxon Chairman and CEO Darren Woods added that the redomiciliation was in part due to Texas' business-friendly environment and policies.

"Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value,” Woods said in a news release. "Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”

The Associated Press reports that about 30 percent of Exxon's employees work in Texas. Exxon's legal headquarters has been based in New Jersey since 1882, when it was Standard Oil Company.

Exxon moved its operational headquarters from Irving, Texas, to the Houston area in 2023.

Exxon was the highest-ranking Houston-area company on this year's Fortune 500 list, coming in at No. 9. Houston tied with Chicago for the second-most Fortune 500 headquarters on this year's list, with Texas leading the nation for the most Fortune 500 headquarters (57).

“Texas is the undisputed headquarters of headquarters,” Gov. Greg Abbott said in a news release. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”

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