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

overheard at SUper dug

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

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.

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6 sustainability-minded Houston stores giving discounts for old clothes

CLOTHES THE LOOP

Shopping is fun, but it comes with the unseen price tag of more than 92 million tons of global textile waste generated each year. With the apparel industry's global emissions predicted to increase by 50 percent in just six years, many see this as a full-blown climate crisis that is already affecting people across the globe.

To combat this problem, several retailers have committed to bolstering their sustainability efforts. From recycling linens, towels, pillows, and robes to upcycling denim, companies are finding ways for every textile to be saved from the landfill and either re-worn, repurposed, or recycled.

Stores trying to make a difference include Patagonia, North Face, J.Jill, Carter's, and DSW Shoes. To make summer vacation and back-to-school shopping more environmentally friendly, we've rounded up six Houston retailers where customers can trade in used clothing and textiles for exclusive discounts.

Gap

Gap has partnered with ThredUp, an online resale company, to recycle gently used clothing for their Gap for Good initiative. Customers can activate a kit and get a label here, fill the bag, and drop it off at any FedEx or post office location. If ThredUp selects any items for resale, customers can choose to receive either cash or store credit. Those who opt for store credit and use it at any Gap Inc.-brand stores will receive an additional 15% off their purchase. For clothes not chosen for resale, ThredUp offers recycling services, or the items can be mailed back to the customer for a fee.

H&M

According to H&M's website, its worldwide garment recycling program, launched in 2013, is "the biggest of its kind in the world." Customers can get 15 percent off their purchase by bringing unwanted clothes or textiles — from any brand and in any condition — to one of its stores. Turn them in at the cashier's kiosk and receive a coupon for their next purchase. The clothing and textiles will be sorted into three categories: re-wear, reuse, or recycling.

Levi's

Levi's aims to keep its coveted jeans in circulation and out of landfills with its trade-in program. The brand accepts denim and trucker jackets that are still in good condition; they repair any minor damage, sanitize the items, and resell them through their secondhand shop. Customers will receive a gift card ranging from $5 to $30, depending on the value of the item traded in. Customers must make an appointment to take advantage of this program, and only certain types of denim are accepted. A complete list of requirements is available here.

Lululemon

Have a drawer full of old Lululemon workout gear? Trade it in for a gift card towards a future purchase. The garment does not need to have its care tag, size tag, or price tag for this initiative; the workout brand accepts clean and gently worn (items with no damage, pilling, rips, or discoloration) women's and men's Lululemon clothing and bags for their Like New program. Except for outlet stores, every Lululemon outpost can accept items for the Like New program. Check what they're taking before going to the store, because items cycle in and out depending on seasonality and inventory. The value of the gift card customers will receive is determined by the value of the items traded in, but generally ranges in price from $5 to $25 and can be redeemed in-store or online.

Madewell

Madewell is on a mission to become fully sustainable, defined as using only fibers sustainably sourced and free of virgin plastics, by 2025. It has partnered with Cotton's Blue Jeans Go Green program to repurpose denim and keep it out of landfills by turning old jeans into housing insulation.

To participate in Madewell's recycling program, bring any brand or style of jeans in any condition to any Madewell store. If shipping is more convenient, activate a Clean Out Kit here or print out a free shipping label and mail in women's previously used clothing, handbags, shoes, and accessories from any brand. In exchange, customers will get a coupon for $20 off purchasing one new pair of Madewell jeans.

Parachute

Parachute, the beloved home essentials brand, is celebrating its 10th anniversary by launching a recycling program. In partnership with SuperCircle, they accept used towels, sheets, and robes. Although there are several recycling programs for clothing, shoes, and accessories, Parachute is pioneering this type of program in the home textile sector.

To participate in the program, customers can take their sheets, towels, pillows, and robes in any condition from any brand to Parachute's Rice Village store. They'll sort and recycle donated items for a second life – from new textiles to new projects, including furniture batting, insulation, and padding – sending nothing to landfill. In return, customers will receive a discount on their next Parachute purchase.

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This article originally ran on CultureMap.

Climatetech funding: New York investment firm to donate part of proceeds to Greentown Labs

donations incoming

Effective immediately, Greentown Labs, which has locations in Houston and Somerville, Massachusetts, is benefitting from funds raised by an investment group.

Greentown Labs, a nonprofit climatetech incubator, announced its partnership with New York-based Prithvi Ventures, a firm that specializes in early-stage climatetech. The unique partnership includes Prithvi Ventures donating "a percentage of proceeds received from its Fund 1 and Fund 2 to Greentown on a quarterly basis, in perpetuity," per Greentown's news release. The exact percentage was not disclosed.

“There’s an understanding in sports that the best teams always take responsibility and accountability for their own and look out for each other—that the members of the team are a reflection of the franchise,” says Kunal Sethi, founder and general partner at Prithvi Ventures. “I have always believed the same to be true in venture, too.

"Founders should know their supporters, team, and cap tables inside and out. It matters who you surround yourself with and Greentown Labs is always the first name that comes up for me," he continues. "Every founder in climatetech should work with them or they’re missing out on so much.”

Prithvi Ventures already has a handful Greentown member companies in its investment portfolio, including Carbon Upcycling, Mars Materials, Nth Cycle, and Rheom Materials. The firm has invested in 30 companies total, and aims to lead rounds, preferring to be the first large check for the startups it invests in.

“We are delighted to deepen our relationship with Prithvi Ventures and are grateful for their ongoing support,” Aisling Carlson, senior vice president of partnerships at Greentown Labs, says in the statement. “Through this new partnership, Prithvi Ventures and its limited partners are setting an example for how the venture community can more directly support the incubators and accelerators working to catalyze climatetech innovation and entrepreneurship.”

New rule to require railroads in Texas, beyond to provide hazardous cargo details upon derailment

in case of emergency

A new federal rule finalized Monday aims to ensure first responders can find out what hazardous chemicals are on a train almost immediately after a derailment so they can respond appropriately. Texas, a major hub for chemical development, will be affected by the ruling.

Too often in past disasters like last year's fiery Norfolk Southern derailment in East Palestine, Ohio, firefighters risked their lives trying to extinguish a blaze without knowing the right way to respond. The local fire chief in charge of the response said it took him 45 minutes to learn exactly what was in the 11 burning tank cars on the train, but some firefighters from neighboring departments that came to help said they didn't know what they were dealing with until two hours after the February 3, 2023, crash.

First responders need to know exactly which hazardous materials are on a train so they can look it up in the government's official guidebook and make sure they have the right protective gear and firefighting tools, said Tristan Brown, deputy administrator of the Pipelines and Hazardous Materials Safety Administration agency that proposed the rule.

Knowing what chemical is involved and how much of it is aboard also affects how big of an evacuation zone might be required to protect the public.

“There are so many different types of hazardous materials being transported across the country on any given day — one in 10 goods that move across the United States — and each one, poses unique risks and hazards, certainly to the folks who are running towards a fire,” Brown said. “But certainly as well for anybody who may be living or working in that vicinity.”

The rule was published just one day ahead of the National Transportation Safety Board's final hearing on the East Palestine derailment, where they will discuss exactly what caused that crash and recommend steps to prevent similar disasters.

Train crews have long carried lists of their cargo in the cabs of their locomotives, but in the middle of the chaos after a derailment those engineers and conductors, who might have moved their locomotives miles down the track, can't always be found right away.

That's part of why the largest freight railroads developed an app called AskRail roughly a decade ago that enables firefighters to quickly look up the details of what each train carries. But not every firefighter had the app, and cell phones don't always have a signal strong enough to work in a disaster.

Regulators want the railroads to continue expanding access to that app, including to 911 centers, so information reaches first responders sooner. The railroads have been expanding access over the past year. The Association of American Railroads trade group estimates some 2.3 million first responders now have access to that information as a result of the effort to expand into dispatch centers.

The six biggest railroads also make train cargo information immediately available through the chemical industry's hazardous materials hotlines in the U.S. and Canada known as the CHEMTREC and CANUTEC, emergency call centers.

Norfolk Southern said that in addition to AskRail it is working with a different program called RapidSOS that will allow the railroad to directly send information about its trains to first responders after a derailment — instead of forcing them to look up the details in AskRail. The railroad said its work fits well with the new rule.

But the new federal rule also applies to the hundreds of smaller railroads that aren't involved in AskRail. Even railroads that only have one or two employees now must have a plan to get the crucial details of their cargo to the local fire department quickly, even if its as simple as having the fire chief's cell phone number at the ready. Railroads also must test their plan at least once a year.

“In a hazmat incident, firefighters and first responders arriving on scene need to know what kind of hazardous materials are present so they can protect themselves and their communities,” U.S. Transportation Secretary Pete Buttigieg said.

It's not clear how this rule might have changed the outcome in East Palestine, but more information could have helped responding firefighters.

The derailment prompted a nationwide reckoning over railroad safety and prompted Congress to propose changes and regulators like Buttigieg to urge railroads to do more to prevent derailments.

The Federal Railroad Administration has issued various advisories about different aspects of railroad operations, but the reforms in Congress have stalled because Republicans wanted to wait for the final NTSB report and regulators have had only limited success making changes.

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