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New report maps Houston workforce development strategies as companies transition to cleaner energy

Some of the key takeaways include strategies that include partnering for success, hands-on training programs, flexible education pathways, comprehensive support services, and early and ongoing outreach initiatives. Photo via Getty Images

The University of Houston’s Energy University latest study with UH’s Division of Energy and Innovation with stakeholders from the energy industry, academia have released findings from a collaborative white paper, titled "Workforce Development for the Future of Energy.”

UH Energy’s workforce analysis found that the greatest workforce gains occur with an “all-of-the-above” strategy to address the global shift towards low-carbon energy solutions. This would balance electrification and increased attention to renewables with liquid fuels, biomass, hydrogen, carbon capture, utilization and storage commonly known as CCUS, and carbon dioxide removal, according to a news release.

The authors of the paper believe this would support economic and employment growth, which would leverage workers from traditional energy sectors that may lose jobs during the transition.

The emerging hydrogen ecosystem is expected to create about 180,000 new jobs in the greater Houston area, which will offer an average annual income of approximately $75,000. Currently, 40 percent of Houston’s employment is tied to the energy sector.

“To sustain the Houston region’s growth, it’s important that we broaden workforce participation and opportunities,” Ramanan Krishnamoorti, vice president of energy and innovation at UH, says in a news release. “Ensuring workforce readiness for new energy jobs and making sure we include disadvantaged communities is crucial.”

Some of the key takeaways include strategies that include partnering for success, hands-on training programs, flexible education pathways, comprehensive support services, and early and ongoing outreach initiatives.

“The greater Houston area’s journey towards a low-carbon future is both a challenge and an opportunity,” Krishnamoorti continues. “The region’s ability to adapt and lead in this new era will depend on its commitment to collaboration, innovation, and inclusivity. By preparing its workforce, engaging its communities, and leveraging its industrial heritage, we can redefine our region and continue to thrive as a global energy leader.”

The study was backed by federal funding from the Department of the Treasury through the State of Texas under the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012.

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Chevron plans to launch its first AI data center power project in West Texas in 2027. Photo via Chevron.com

Two of the Houston area’s oil and gas goliaths, Chevron and ExxonMobil, are duking it out in the emerging market for natural gas-powered data centers—centers that would ease the burden on electric grids.

Chevron said it’s negotiating with an unnamed company to supply natural gas-generated power for the data center industry, whose energy consumption is soaring mostly due to AI. The power would come from a 2.5-gigawatt plant that Chevron plans to build in West Texas. The company says the plant could eventually accommodate 5 gigawatts of power generation.

The Chevron plant is expected to come online in 2027. A final decision on investing in the plant will be made next year, Jeff Gustavson, vice president of Chevron’s low-carbon energy business, said at a recent gathering for investors.

“Demand for gas is expected to grow even faster than for oil, including the critical role gas will play [in] providing the energy backbone for data centers and advanced computing,” Gustavson said.

In January, the company’s Chevron USA subsidiary unveiled a partnership with investment firm Engine No. 1 and energy equipment manufacturer GE Vernova to develop large-scale natural gas power plants co-located with data centers.

The plants will feature behind-the-meter energy generation and storage systems on the customer side of the electricity meter, meaning they supply power directly to a customer without being connected to an electric grid. The venture is expected to start delivering power by the end of 2027.

Chevron rival ExxonMobil is focusing on data centers in a slightly different way.

ExxonMobil Chairman and CEO Darren Woods said the company aims to enable the capture of more than 90 percent of emissions from data centers. The company would achieve this by building natural gas plants that incorporate carbon capture and storage technology. These plants would “bring a unique advantage” to the power market for data centers, Woods said.

“In the near to medium term, we are probably the only realistic game in town to accomplish that,” he said during ExxonMobil’s third-quarter earnings call. “I think we can do it pretty effectively.”

Woods said ExxonMobil is in advanced talks with hyperscalers, or large-scale providers of cloud computing services, to equip their data centers with low-carbon energy.

“We will see what gets translated into actual contracts and then into construction,” he said.

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