Texas could lead the energy transition. State leaders are determined to fight it

The state of Texas is in an energy transition. Some prefer to call it an expansion, but make no mistake, it’s happening and we’re in it. 

We can try to hold it back, but it would be like trying to hold back the tide. We’ll lose. 

Or we can lead it. Shape it. Create high-paying jobs from it.  Profit from it. And hell, maybe even help maintain a habitable Earth.

Right now, Texas’ political leadership seems hell-bent on choosing a quixotic battle against economic gravity—and Texans will suffer for it.

Last month, the Texas Comptroller functionally blacklisted financial firms that have net-zero goals (goals to reach zero emissions at a future date). In the minds of Texas leaders, that equals a boycott of oil and gas firms. 

But by that definition, Texas-based Oxy, a $40 billion oil and gas producer, boycotts oil and gas. They have an aggressive net-zero goal — they actually trademarked the term “Zero In.” Another boycotter: Schlumberger, the largest oil field services firm in the world. And Pioneer. And for goodness sake, Exxon!

But let’s come back to Oxy, the recent object of desire of one Warren Buffett. Their CEO, Vicki Hollub, says the way to win the energy transition is to be the most sustainable oil and gas producer. I know, I know: oil and gas is not sustainable for the long term. But for the short to medium term, we’re going to use it. Hollub acknowledges that oil and gas are not sustainable long-term, but she says Oxy will have emissions so low that they’ll “be the company to produce the last barrel of oil.”

“I’m thinking about the long term for our shareholders,” Hollub told the Financial Times. It’s a fascinating strategy and it’s working; Oxy stock is up 100% on the year.

If only Texas leaders would think similarly. But they want to go the other way. They deny and delay, punishing anyone investing in lower emissions, refusing to acknowledge the reality of human-caused climate change or the energy transition.