Deanna Zhang of Tudor, Pickering, Holt & Co. joined the Houston Innovators Podcast to discuss 2020's effect on the energy transition — and what that meant for startups. Photo courtesy of TPH

In 2020, the economy was hit with a double whammy of sorts — from a devastating pandemic to an unprecedented drop in oil prices — and that has meant that the energy transition is happening at a faster pace than ever.

Deeana Zhang, director of energy technology at Tudor, Pickering, Holt & Co., joined the Houston Innovators Podcast this week to discuss what she observed throughout the year as she worked closely with energy tech businesses.

"Because it was such a disruptive year, everyone — from the commercial and business side to the consumer side — has rethought how they are using and thinking about energy," she says on the show. "It was the first time that you saw such a mass disruption of energy demand, and that rolls through the entire ecosystem."

The effect touched all four corners of the industry in some way, and it forced all major energy players to be more intentional with their business strategy — especially when it comes to the role they play within the energy transition.

"The energy transition saw a huge uptick in 2020 — and there's a lot of implications of that from what pilots are getting commercialized and what companies are getting more funding," says Zhang. "All around it was hugely disruptive — but hugely beneficial I think to the energy transition."

Environmental, social and corporate governance, which has been growing in importance to investors and company leadership for several years now, also got a spur from 2020. ESG has been propelled by activism and consumer choice, Zhang says, but now investors are now forced to be more cognizant than ever.

"What's the investor responsibility to society as a whole? It's going beyond economics — what's your social and environmental responsibility? I think a lot of that expansion of responsibility is what's driving ESG," she says. "That's going to trickle down corporations and companies as they think about what is their expanded responsibility."

Zhang, who works closely with energy startups, also observed a profound effect when it came to capital and new business.

"A lot of companies say numbers go down in 2020, but the exceptions to that were companies that had a strong energy transition angle. Those companies were able to reposition themselves to ... counteract what was going on in the market in general," Zhang says. "From a capital raising standpoint, it was also really challenging. A lot of funds put a hold on investing in new companies and even some to their existing portfolio."

Investment came back toward the second half of the year, but there was a new level of caution, she says, and this is something startups saw happening across the country.

Zhang discusses more about what she saw happen last year for energy technology — as well as what that means for 2021 — on the episode. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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CultureMap Emails are Awesome

Future-focused Houston nonprofit names new leader

taking the helm

A nonprofit organization dedicated to leading Houston into the future has named its next leader.

The Center for Houston’s Future named David Gow as president and CEO, succeeding Brett Perlman, who was announced in April to be remaining at the Center with a focus on the Center’s hydrogen initiative. Gow is the founder and chairman of Gow Media, InnovationMap's parent company. His role is effective September 3.

“I am excited to step into this opportunity with the Center and work with the team, the board and many other stakeholders to help shape Houston’s future,” Gow says in a news release. “The Center presents an exciting opportunity to cast a vision for our region and identify initiatives that will make an impact.”

Gow — whose career includes a portfolio of online media properties and ESPN Radio — is a board member of Goose Capital and chair of MSAI, an entity he formed through a SPAC acquisition. Before he founded Gow Media, he served as CFO and CEO of an online watch retailer, Ashford.com. Prior to Ashford, Gow was director of corporate strategy at Compaq Computers and a consultant at McKinsey & Co. He received his master’s in public policy from Harvard and his bachelor's in economics from Williams College.

“David’s portfolio of experiences and skills, record of innovation and success, and deep commitment to the Houston community make him the perfect fit to lead the Center as we chart and execute on our next set of initiatives focused on ensuring a bright future for all residents in the Houston region,” adds Center for Houston’s Future Board Chair Cindy Yeilding.

In his new role, Gow will lead the Center’s next effort, Vision 2050, which plans to identify the city's key issues, gaps, and opportunities.

“Today’s announcement also reflects the success of the Center’s clean hydrogen program,” Yeilding continues. “On behalf of the Center’s board, I’d also like to recognize Brett for launching and building such a successful and important effort as well as his overall leadership and record of achievement at the Center these past seven years.”

Growing Houston energy startup scales local office presence

settling in

On the heels of landing more than $240 million in venture capital, Houston-based geothermal power provider Fervo Energy has more than quadrupled the size of its headquarters.

Fervo previously occupied 5,158 square feet at 114 Main St. in downtown Houston. The company recently left the Main Street space and leased 23,782 square feet at downtown Houston’s 910 Louisiana office tower. Houston-based commercial real estate company Hines owns and manages the 50-story former One Shell Plaza.

“We believe Houston is the center of the energy transition, and downtown Houston has long been its center of activity,” Tim Latimer, co-founder and CEO of Fervo Energy, says in a news release. “The availability of dining options, parks, and biking infrastructure continue to be great assets and a huge draw for our team. For these reasons and more, the only place for Fervo’s headquarters is downtown Houston.”

In February 2024, Fervo announced it had raised $244 million in an investment round led by Oklahoma City, Oklahoma-based hydrocarbon exploration company Devon Energy. Fervo has collected $431 million in funding since its founding in 2017.

Energy companies like Fervo occupy about 43 percent of office space in downtown Houston, according to a new report from the Downtown Houston+ organization. Nineteen new tenants set up shop last year in downtown Houston, with 10 of them operating in the energy sector.

Other energy companies that recently leased office space in downtown Houston include:

  • AES Clean Energy
  • Axip Energy Services
  • EnLink Midstream
  • MRC Global
  • Repsol Renewables
  • Stonepeak

Chevron to relocate HQ, executives to Houston

big move

The Energy Capital of the World is adding another jewel to its corporate crown.

With the impending move of Chevron’s headquarters from Northern California to Houston, the Houston area will be home to 24 Fortune 500 companies. Chevron ranks 15th on this year’s Fortune 500.

Oil and gas giant Chevron, currently based in San Ramon, California, will join three Fortune 500 competitors that already maintain headquarters in the Houston area:

  • Spring-based ExxonMobil, No. 7 on the Fortune 500
  • Houston-based Phillips 66, No. 26 on the Fortune 500
  • Houston-based ConocoPhillips, No. 68 on the Fortune 500

Chevron, which posted revenue of $200.9 billion in 2023, employs about 7,000 people in the Houston area and about 2,000 people in San Ramon. The company says its chairman and CEO, Mike Wirth, and vice chairman, Mark Nelson, will move to Houston before the end of 2024.

In an interview with The Wall Street Journal, Wirth acknowledged Chevron’s differences of opinion with California policymakers regarding energy matters.

“We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers,” Wirth said.

Chevron expects all of its corporate functions to shift to Houston over the next five years. Jobs that support the company’s California operations will remain in San Ramon, where Chevron employs about 2,000 people. Some Chevron employees in San Ramon will relocate to Houston.

The company’s move to Houston hardly comes as a surprise. Speculation about a relocation to Houston intensified after Chevron sold its 98-acre San Ramon headquarters in 2022 and moved corporate employees to leased office space. Over the past several years, Chevron has shifted various corporate functions to Houston.

“This is just the final step that many industry observers were waiting to happen,” Ken Medlock, senior director of the Baker Institute’s Center for Energy Studies at Rice University, says in a news release.

“To start, Houston provides a world-class location for internationally focused energy companies, which is why there is such a massive international presence here,” Medlock adds. “Texas is also the nation’s largest energy producer across multiple energy sources and is poised to lead in emerging opportunities such as hydrogen and carbon capture, so Houston is a great place for domestically focused activities as well.”

The announcement of Chevron’s exit from California comes just a year after ExxonMobil finalized its relocation from Irving to Spring.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, says in a post on the organization’s website.

“With deep roots in our region,” he adds, “Chevron is [a] key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

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This article originally ran on EnergyCapital.