HOUSTON – Houston – and Texas in general – is often criticized for its electrical grid and the challenges of maintaining power during natural disasters. How can a city known as the “energy capital of the world” struggle to maintain power?

Criticism first emerged in 2021, when ERCOT, the state’s grid operator, came under fire after millions of Texans were left without heat during the frigid temperatures of Winter Storm Uri. More recently, severe weather events such as the derecho in May and Hurricane Beryl in July have caused extended power outages for many Houston-area residents, resulting in several heat-related deaths.

Eerie: Infrared map shows Houston before and after the deadly derecho 👀

Now the energy sector in Texas is under even greater scrutiny. Citizens and politicians are demanding accountability, and Texas Attorney General Ken Paxton has launched an investigation into the failures during Hurricane Beryl.

Texas launches new investigation into Houston power company after deadly Beryl outages

Given all of this, the question arises: What exactly makes Houston the “Energy Capital of the World”? According to the Greater Houston Partnership, there are several key reasons for this:

Strategic location: Houston is located near huge natural gas and crude oil reserves, and the Gulf of Mexico is a major source of petroleum products.

Robust energy infrastructure: The city has a large port, a well-developed network of pipelines, refineries and distribution centers, and over 180 pipeline transport companies.

Abundance of energy companies: Houston is home to over 600 exploration and production companies and 1,100 oilfield service companies.

Pooling of competencies: The city has a high density of energy professionals, including petroleum, automation and electrical engineers.

Energy diversity: While Houston has historically been known for its oil and gas industry, it has also become a leader in renewable energy, including wind and solar power.

Junior pool: Houston benefits from a strong university system with many nationally recognized degree programs and a large number of young professionals with advanced degrees.