Companies including Houston-based Chevron and Hess and BP, each with a Houston presence, offered bids. Photo via Getty Images

Last month, oil companies offered $382 million for drilling rights in the Gulf of Mexico on Wednesday after courts rejected the Biden administration's plans to scale back the sale to protect an endangered whale species.

The auction was the last of several offshore oil and gas lease sales mandated under the 2022 climate law. It comes as President Joe Biden’s Democratic administration tries to navigate between energy companies seeking greater oil and gas production and environmental activists who want to stop new drilling to help combat climate change.

Companies including Houston-based Chevron and Hess and BP, each with a Houston presence, offered bids on more than 300 parcels covering 2,700 square miles (7,000 square kilometers), according to the U.S. Department of Interior's Bureau of Ocean Energy Management.

The dollar amount of the successful bids marked a sharp increase from the previous sale in March 2023, when the Interior Department awarded leases covering about 2,500 square miles (6,500 square kilometers) for $250 million.

The next sale will be conducted in 2025, to the frustration of energy companies and Republicans who say the administration is hampering U.S. oil production.

Wednesday's online auction was originally scheduled for September but got delayed by a court battle after the administration reduced the area available for leases from 73 million acres (30 million hectares) to 67 million acres (27 million hectares) as part of a plan to protect the endangered Rice’s whale.

Chevron, Shell Offshore, the American Petroleum Institute and the state of Louisiana sued to reverse the cut in acreage and block the inclusion of the whale-protecting measures in the lease sale provisions.

A federal judge in southwest Louisiana ordered the sale to go on without the whale protections, which also included regulations governing vessel speed and personnel. Environmental groups appealed, but the New Orleans-based 5th Circuit Court of Appeals last month rejected their arguments against the sale and threw out the plans to scale it back.

The lease sale was required under a compromise with Democratic Sen. Joe Manchin of West Virginia, a supporter of the oil and gas industry who cast the deciding vote in favor of the landmark climate law. The measure was approved with only Democratic votes in Congress. Under the terms negotiated by Manchin, the government must offer at least 60 million acres of offshore oil and gas leases in any one-year period before it can offer offshore wind leases that are part of its strategy to fight climate change.

Only a small portion of parcels that are offered for sale typically receive bids, in areas where companies want to expand their existing drilling activities or where they foresee future development potential.

The administration in September proposed up to three oil and gas lease sales in the Gulf of Mexico over the next five years and none in Alaska waters. That was the minimum number the administration could legally offer if it wants to continue expanding offshore wind development.

Environmental groups criticized the five-year plan as a “missed opportunity” to stop the expansion of oil and gas drilling in the Gulf of Mexico and address climate change.

“New oil and gas operations (in the Gulf) will only bring more health risks to Gulf Coast communities and slow our transition to a clean-energy economy,'' said Earthjustice attorney Brettny Hardy.

The industry, meanwhile, said more sales are needed — and sooner.

“In our forward-thinking industry, securing new lease blocks is vital for exploring and developing resources crucial to the U.S. economy,'' said National Ocean Industries Association President Erik Milito. “The Gulf of Mexico is a prime economic engine and investment area, and this (lease sale) was the last chance for companies to secure leases in the near term.''

Holly Hopkins, API vice president of upstream policy, called Wednesday's sale "a "positive step after multiple delays,'' and noted that it generated the highest dollar value for bids in nearly a decade.

The results demonstrate that the oil and gas industry “is working to meet growing demand and investing in the nation’s long-term energy security,'' Hopkins said. “Just as today’s record U.S. production was supported by investment and policy decisions made years ago, new leasing opportunities are critical for maintaining American energy leadership for decades to come.''

The administration's clean-energy ambitions have been hampered by recent project cancellations including two large wind projects shelved last month off the New Jersey coast and the earlier cancellation of three projects that would have sent power to New England.

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ENGIE inks deal to supply wind energy for Oracle’s Texas operations

wind deal

Houston-based renewable energy company ENGIE North America has made a deal to supply up to 568 megawatts of renewable electricity for tech giant Oracle's projects in Texas.

The power will come from ENGIE’s wind resources serving the Electric Reliability Council of Texas (ERCOT) grid. Oracle is developing data centers in Abilene and Shackelford, Texas, according to its website.

The Oracle deal is part of ENGIE’s efforts to bring substantial new electricity supply to the grid. In the past six years, ENGIE has developed 12 gigawatts of new renewable generation and battery storage capacity in North Americas, equaling $11 billion in capital, according to the company.

"Our customers are looking for reliable, scalable energy solutions that can support long-term growth," Anne-Laure Chassanite, interim CEO of ENGIE North America, said in a news release. "ENGIE has invested heavily in developing new generation resources across North America, and we're pleased to support Oracle as it continues to expand its operations in Texas. These agreements reflect the strength of our portfolio and our ability to deliver customized energy solutions that help customers meet their business objectives.”

Computer technology and cloud computing company Oracle is working towards its goal to match 100 percent of AI data center electricity use with carbon-free electricity by 2035.

"Oracle is taking a responsible approach to meeting the energy needs of our growing AI and cloud operations in Texas — investing in carbon-free electricity without shifting costs to consumers," Julia Robin, head of infrastructure planning and sourcing for Oracle Cloud Infrastructure, added in the release. "Our agreements with ENGIE advance Oracle's goal to match 100 percent of our AI data center electricity use with carbon-free electricity by 2035, while supporting long-term economic growth with no cost impact to the state of Texas.”

ENGIE also recently won the 2026 Green Power Leadership Award in the Market Innovation category for its work advancing 24/7 renewable energy solutions. The awards honor individuals and companies advancing sustainability and renewables in the energy industry through innovation and leadership.

The company has inked major deals to supply renewable energy to other major companies like Meta, Daikin and others.

Houston energy and innovation leaders come together at Argonne National Laboratory

The view from heti

Nearly 20 companies from Houston, ranging from global multinationals to innovative startups, joined the team at Argonne National Laboratory in Lemont, Illinois, for a full day of meetings, discussions, and networking focused on advancing innovation, commercialization, and industry collaboration.

The fly-in organized by the Houston Energy Transition Initiative, provided a unique opportunity for companies to engage directly with Argonne researchers, technical experts, and leadership while gaining a deeper understanding of the laboratory’s world-class capabilities. Participants explored how national laboratories can help bridge the gap between breakthrough research and commercial deployment, particularly in areas critical to U.S. competitiveness and economic growth.

The significance of this engagement extends beyond a single visit. While the U.S. Department of Energy operates 17 national laboratories, none is located along the Gulf Coast, a region uniquely home to industry, infrastructure, and energy systems at commercial scale. HETI’s continued work with the national laboratories helps bridge that geographic and operational gap by connecting world-class scientific research with companies that understand how to scale and deploy technologies. The Argonne fly-in also created space to address practical barriers to collaboration, including complex agreements and lengthy contracting timelines, and to explore ways to establish partnership frameworks more efficiently.

Explore HETI’s key takeaways from the fly-in:

1. Scaling Technologies for Commercial Use

A central theme was the importance of scale-up infrastructure and the role Argonne plays in helping companies reduce technical and manufacturing risks. Participants learned how facilities such as the Materials Engineering Research Facility (MERF) support the transition from laboratory discoveries to pilot-scale production and ultimately commercial manufacturing. These capabilities are especially valuable for companies working to move promising technologies from concept to market.

The discussions also highlighted Argonne’s extensive work in critical materials, battery recycling, advanced manufacturing, and supply chain resilience. Attendees learned about initiatives including the ReCell Center, AI-enabled materials discovery, and advanced modeling tools that can help businesses understand supply chain vulnerabilities and evaluate mitigation strategies. These capabilities have applications across energy, chemicals, manufacturing, semiconductors, defense, and emerging technologies.

2. Creating Pathways for Collaboration

Another key takeaway was the importance of engaging early. Companies do not need to arrive with a fully developed project or solution. Argonne offers multiple pathways for collaboration, including sponsored research, user facility access, technology licensing, pilot-scale testing, and Cooperative Research and Development Agreements (CRADAs). These partnerships help companies access specialized expertise, facilities, and analytical tools that can accelerate innovation and commercialization

3. Building Connections Across Industry and Research

The fly-in reinforced the value of relationship building. Bringing together nearly 20 organizations in one place created meaningful opportunities for collaboration, knowledge sharing, and identifying future projects.

The conversations throughout the day demonstrated a shared commitment to strengthening domestic innovation, developing resilient supply chains, and creating pathways to bring new technologies to market.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. Learn more about HETI’s role in advancing solutions and building partnerships to leverage Houston’s industry leadership for an energy-abundant, low-carbon future.

Fervo produces first geothermal power at flagship Utah project

energy milestone

Fervo Energy’s flagship project in Utah just generated its first geothermal power.

The electricity is now flowing to the power grid from one of Cape Station’s three generation units, Houston-based Fervo said in a news release. This represents an early but important milestone for the project, as the unit isn’t scheduled to deliver contracted power until Oct. 1.

The achievement, coming four months after Fervo’s roughly $2.2 billion IPO, demonstrates the viability of enhanced geothermal systems (EGS).

“This is a gamechanger for the geothermal industry. It establishes EGS as the defining new power generation technology of our time, and we believe it shows that the commercial and technical maturity of EGS is ready to meet the urgent need for reliable, clean power,” Tim Latimer, co-founder and CEO of Fervo, said in the release.

The plant’s two other units are scheduled to launch commercial operations on Jan. 1.

The three units make up the project’s 99-megawatt first phase. The next phase, which will add 400 megawatts of capacity, is under construction. The second phase is set to go online in 2028.

Altogether, Cape Station will provide more than 4 gigawatts of capacity, with 900 megawatts already spoken for. The 900 megawatts of contracted electricity would be enough to power nearly 1 million U.S. homes per year.

“Cape Station works because we treated the subsurface like an engineering challenge,” Jack Norbeck, co-founder and chief technology officer of Fervo, added in the release. “Years of drilling, completion design, subsurface modeling, and flow testing led to this moment, and this is the validation that matters most.”

Enhanced geothermal continuously draws on heat that’s deep underground, producing electricity around the clock regardless of weather or time of day. That makes it one of the only carbon-free resources capable of constant power delivery, which is critical for data centers and AI infrastructure.