If there was ever any doubt how much Houston depends on oil... (Dallas: amusement park, health insurance)

[Lowexpectations]

Originally Posted by radiolibre99

Peter, I don't think anyone is saying that they'd deny rights to the lgbt. That's not what this is about. It's about believing that the HERO ordinance would be a boon for economic growth in Houston, even if it is just tech. That's silly. A city ordinance wouldn't make Houston string again.

I don't think a hero ordinance wouldn't hurt and it certainly could help

[jghall00]

Oil and gas drives wages, which drives local demand for goods and services which drives employment, which drives population growth. We need more businesses identifying and targeting new market segments with products or services that can be offered worldwide, instead of servicing existing ones.

Part of the problem is that Houston is not perceived as being as young and dynamic as competing cities like Austin, LA, or SF. So we attract more people who want a steady paycheck, instead of more entrepreneurial talent. We need an ecosystem that supports and nourishes risk-taking and entrepreneurial mindsets.

Oil money was easy money, so there was no incentive to take risks with other industries. But the downside is you're subject to huge swings in economic activity due to changes in commodity prices. I don't think the oil and gas industry is coming back. Fracking really opened up a can of worms, because it increased supply way too much. A tremendous amount of market consolidation is needed to get prices back up; but with so many producers and flat demand, there's only so much that can be done to limit supply.

Simultaneously, Tesla is opening a new era in clean energy with its cheaper batteries. World population growth is also slowing down, which will result in slow demand for energy growth, most of which can be serviced with cheaper renewable energy combined with storage, instead of massive infrastructure for fossil fuel plants and sprawling electric grids.

[radiolibre99]

Originally Posted by Lowexpectations

I'm not butthurt at all nor did I result to insults or doom and gloom. I'm not sure if you are confusing me with some other poster but you seem entirely off base in your response.

Well why were you pushing a narrative? In the end most businesses aren't leading and hurting NC. They don't plan to relocate or stay in NC only to change their minds due to a proposed bill that doesn't directly affect their finances.

[Lowexpectations]

Originally Posted by jghall00

Oil and gas drives wages, which drives local demand for goods and services which drives employment, which drives population growth. We need more businesses identifying and targeting new market segments with products or services that can be offered worldwide, instead of servicing existing ones.

Part of the problem is that Houston is not perceived as being as young and dynamic as competing cities like Austin, LA, or SF. So we attract more people who want a steady paycheck, instead of more entrepreneurial talent. We need an ecosystem that supports and nourishes risk-taking and entrepreneurial mindsets.

Oil money was easy money, so there was no incentive to take risks with other industries. But the downside is you're subject to huge swings in economic activity due to changes in commodity prices. I don't think the oil and gas industry is coming back. Fracking really opened up a can of worms, because it increased supply way too much. A tremendous amount of market consolidation is needed to get prices back up; but with so many producers and flat demand, there's only so much that can be done to limit supply.

Simultaneously, Tesla is opening a new era in clean energy with its cheaper batteries. World population growth is also slowing down, which will result in slow demand for energy growth, most of which can be serviced with cheaper renewable energy combined with storage, instead of massive infrastructure for fossil fuel plants and sprawling electric grids.

Houston doesn't have an issue with attracking younger folks, it's not Austin but still not problematic

http://www.bizjournals.com/houston/n...worst-for.html

[Lowexpectations]

Originally Posted by radiolibre99

Well why were you pushing a narrative? In the end most businesses aren't leading and hurting NC. They don't plan to relocate or stay in NC only to change their minds due to a proposed bill that doesn't directly affect their finances.

Pushing a narrative? You mean posting about and discussing current events? Could you actually tell me or specifically by quoting what I said that points out what narrative I'm pushing?

[aero100]

Originally Posted by LocalPlanner

Houston's leaders know that more diversification is needed. However, the problem is that O&G is like a super-effective intoxicant. When it's going good, it generates huge numbers of really well-paying jobs for educated / trained people. Who's going to say no to that? And our region took a big, big dose from 2011-2014. Problem is, this high-paying job growth just starts dominating and sucking up all the dynamism, seemingly not leaving much room for other industries to grow - they just can't pay as much for either direct labor (wages) or vendor contracts. So folks and businesses will tend to sit around waiting for upstream O&G to come back rather than do the difficult and less financially rewarding (in the short term) work of creating a more diversified industry profile.

This is very insightful. In one corner of the world I know (aerospace, which like O&G relies heavily on engineering) the competition during the boom for Mechanical and Electrical Engineers was intense. Aerospace paid solid engineering salaries in Houston (probably on the high side nationally when you consider cost of living) but there was no way they could compete with those during the peak of the boom, in particular fresh outs and those that weren't as familiar with the boom/bust cycle of energy. I'm sure it's similar in other engineering-heavy industries that may consider Houston.

I definitely know of projects that did not locate here because of that. They couldn't pay enough for the labor or were afraid of employees getting hired away for double the salary. For the same reason, much of the aerospace industry has moved out of California as well (before Silicon Valley was there, Palo Alto and Sunnyvale were NASA/Lockheed towns and those engineer's kids founded the tech industry).

[gwarnecke]

Bit of a generalization to call oil money "easy money". The growth in unconventionals development and production that drove a lot of the good times in Houston was driven by newly-formed independent companies, and the rapid growth of many midsized ones.

[Cowboys fan in Houston]

The answer is simple: diversification.


Oil is going to boom and bust. It always has and it always will. The economical stability of our city depends on our leaders doing everything they can to lure non O&G businesses to Houston.

[LocalPlanner]

Originally Posted by peterlemonjello

The answer is simple: diversification.


Oil is going to boom and bust. It always has and it always will. The economical stability of our city depends on our leaders doing everything they can to lure non O&G businesses to Houston.

True but the O&G highs (the booms) are SOOOO HIGHHH. So like an addict you keep looking for / waiting for that next boom, to feel that way again.

[radiolibre99]

So what has Dallas done to attract other business? It seems to be gaining tech companies and fosters more start ups too. What can Houston do to be more like Dallas?