Houston is Not Prepared for the Oil Bust (incomes, business)

[ParaguaneroSwag]

Additionally from the way Houston suffers from an oil bust, let's look also look at how Houston benefits from an oil bust (yes there are pros as well).

[ParaguaneroSwag]

To put things into perspective, Las Vegas is getting hit much worse than Houston economically. While we are due to see some layoffs, O&G is still running, albeit with severely low prices. Not only are travel prices severely low, people are simply not traveling while they O&G is being deducted, it isn't being completely halted like a lot of the travel industry is.

[LocalPlanner]

Originally Posted by ParaguaneroSwag

To put things into perspective, Las Vegas is getting hit much worse than Houston economically. While we are due to see some layoffs, O&G is still running, albeit with severely low prices. Not only are travel prices severely low, people are simply not traveling while they O&G is being deducted, it isn't being completely halted like a lot of the travel industry is.

That may be true in the short term. But if coronavirus plays out in a couple months, LV will get back to normal quickly. It's quite possible, or rather likely, that low oil prices (below $50) will stick around for the better part of the year regardless of how quickly the virus problem is diminished.

[AcresHomes44]

If Houston has another oil bust, it WON'T be on the level of the 80s, believe that. During the period of 1982-90, that's when Houston was really suffering. Back then, Houston didn't have the diversified economy it has now, so I don't think we'll suffer as we did in the 80s. I give this coronavirus 6 months before it dies out. https://www.dallasfed.org/~/media/do...003/hb0304.pdf

[ParaguaneroSwag]

Originally Posted by LocalPlanner

That may be true in the short term. But if coronavirus plays out in a couple months, LV will get back to normal quickly. It's quite possible, or rather likely, that low oil prices (below $50) will stick around for the better part of the year regardless of how quickly the virus problem is diminished.

So will travel. Things don't go pick up right where they left off even if the corona virus gets entirely contained right now. It takes a recovery phase to get everything back to the same level of profitability as it was before the outbreak.

[ParaguaneroSwag]

Originally Posted by AcresHomes44

If Houston has another oil bust, it WON'T be on the level of the 80s, believe that. During the period of 1982-90, that's when Houston was really suffering. Back then, Houston didn't have the diversified economy it has now, so I don't think we'll suffer as we did in the 80s. I give this coronavirus 6 months before it dies out. https://www.dallasfed.org/~/media/do...003/hb0304.pdf

This, and also, people are underrating the economy as a whole's fall out. I seriously have no idea where people get the idea that after the virus is contained, things will go right back to how they were originally.

[SanJac]

Travel industry just got a body blow with travel restrictions from Europe to the U.S. for the next 30 days

[globalhamster]

Originally Posted by diggity101

His source links are literally a bunch of click bait so why should I take it seriously? Everything from the Ion project (which is on schedule and has very little community pushback), to the UT project (which the regents later admitted to screwing up royaly). You already covered the laughable argument that renewables are currently less expensive than fossil fuels...without subsidies.

I think any rational person knows that O&G is a big driver in Houston and it's going to be a rough ride, but that argument can be made without a bunch of "gotcha" accusations about poor city planning.

Wait. Didn't they lay off a whole bunch of people 5 years ago. I don't think they have many to lay off now. No?

[Atlwarrior]

Originally Posted by southernnaturelover

Yep, my spouse works for one of the big oil companies in Houston, and he was notified today that there is no more work scheduled for he foreseeable future. This is why we always make sure to have at least a years worth of expenses put back.

Great advice, Dave Ramsey being telling people for years to get out of debt and have an emergency fund.

[southernnaturelover]

Originally Posted by Atlwarrior

Great advice, Dave Ramsey being telling people for years to get out of debt and have an emergency fund.

This is especially true in the oil biz, it has always been boom and bust. Many people working in the oil field go out and buy expensive homes and finance $60k pickups, and then in times like these they're in trouble. We learned that lesson long ago, and started investing in rental property with cash while the times were good, and now we have zero debt. Now, we can rely on our rental income while we wait for oil to go back up.

Anyone working in the oil field needs to save save save!