Houston faces challenges in transitioning its workforce amid global shift towards low-carbon energy

The greater Houston area, home to more than 4,700 energy companies, stands at a critical juncture.

Energy, especially oil and gas, has been fundamental to the region's economy, contributing a quarter of its gross domestic product. Houston-area leaders now face the challenge—and opportunity—of redefining and sustaining the region amidst a global shift towards low-carbon energy solutions. This transformation, driven by the urgent need to mitigate climate change, promises to reshape the area’s economic landscape and workforce. The emerging hydrogen ecosystem alone is expected to create about 180,000 new jobs in the greater Houston area, offering an average annual income of approximately $75,000.

The University of Houston – The Energy University – is studying the challenges and considering ways to leverage opportunities presented by these changes.

UH Energy’s workforce analysis found that the greatest workforce gains occur with an all-of-the-above energy strategy, balancing electrification and increased attention to renewables with liquid fuels, biomass, hydrogen, carbon capture utilization and storage (CCUS), and carbon dioxide removal. This would support both economic and employment growth while leveraging skilled workers from traditional energy sectors like coal, oil, and natural gas which may lose jobs during the transition.

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

Under his direction, UH’s Division of Energy and Innovation brought together key stakeholders from industry, academia and the community to explore the topic. This collaboration led to a white paper titled "Workforce Development for the Future of Energy."

The white paper underscores the critical need for collaboration among government entities, academia, community groups and industry leaders to address workforce challenges associated with this significant shift.

Key Findings and Recommendations:

- Partnering for Success: For maximum impact, industry leaders should partner with secondary schools, post-secondary institutions and training organizations to ensure training opportunities focus on real-world skills required.

- Hands-On Training Programs: Internships, apprenticeships and pre-apprenticeships have proven highly effective in providing practical paid training opportunities. Increased funding for these programs is essential.

- Flexible Education Pathways: Diverse training approaches are needed including industry-led training programs from educational institutions as well as community-based training.

- Comprehensive Support Services: Funding wrap-around support services such as childcare transportation financial aid are crucial for addressing barriers enabling a diverse inclusive workforce.

- Early Ongoing Outreach: Initiatives like career fairs STEM outreach programs should begin early ensuring students their families are aware of future career opportunities steps needed well before high school graduation.

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

This project was funded in part with federal funding from the Department of Treasury through State Texas under Resources Ecosystems Sustainability Tourist Opportunities Revived Economies Gulf Coast States Act 2012. The statements findings conclusions recommendations those author(s) do not necessarily reflect views State Texas Department Treasury.