Oil spill and real estate around energy corridor ?

[EasilyAmused]

Originally Posted by Oildog

Meanwhile, China will come in and get that oil, now that they know where it is, and in international waters. They are already doing that with Cuba, chances are they will partner with Mexico.

Granted the spill needs to be controlled, and understood what happened. But this^^^ is what people should be concerned with. Other countries won't stop drilling in the gulf or other international waters.

Or live within "green" standards.....

[texas7]

Originally Posted by EEstudent

Although BP has causes unrepairable damage to the Gulf Coast, I feel sorry for them because this could have happened to any of the major companies. IMO people need to realize that this disaster could have very well been caused by any other major oil company (Exxon, Shell, Chevron, etc).

Except that BP has a history of safety violations and unsafe practices (i.e., Texas City) whereas all the other mentioned companies don't have nearly the incidents of BP. So hopefully BP will learn from this and adapt safer practices and standards.

[EEstudent]

Originally Posted by texas7

Except that BP has a history of safety violations and unsafe practices (i.e., Texas City) whereas all the other mentioned companies don't have nearly the incidents of BP. So hopefully BP will learn from this and adapt safer practices and standards.

Well, if thats the case then there really is a problem within BP and they should be punished severely for what they did.

[EEstudent]

Originally Posted by Oildog

Meanwhile, China will come in and get that oil, now that they know where it is, and in international waters. They are already doing that with Cuba, chances are they will partner with Mexico.

Granted the spill needs to be controlled, and understood what happened. But this^^^ is what people should be concerned with. Other countries won't stop drilling in the gulf or other international waters.

I'm pretty sure these huge Oil companies have enough pull and leverage in the world to make sure that they are the ones who get to that oil before anyone else.

Lets face it, oil companies have lined the pockets for politicians and made sure that they receive the highest profits possible, I'm certain they will find a way to keep the oil reserves from anyone else.

[Oildog]

Originally Posted by EEstudent

I'm pretty sure these huge Oil companies have enough pull and leverage in the world to make sure that they are the ones who get to that oil before anyone else.

Lets face it, oil companies have lined the pockets for politicians and made sure that they receive the highest profits possible, I'm certain they will find a way to keep the oil reserves from anyone else.

This is a misinformed statement.

[hsw]

The oil spill is an unfortunate situation in an inherently risky, but highly profitable, industry...not unlike the ever-present risk of a major drug recall and massive litigation risk like Merck's Vioxx or other famed drug/device industry debacles (Hou's plaintiffs' lawyers do a great job making sloppy or evil wealthy cos. pay up when they screw up)

Houston's economy will always be levered to price of oil...just as Silicon Valley is utterly dependent on tech industry profits and share prices and NYC is utterly dependent upon fortunes of a few major hedge funds and GoldmanSachs: just a few highly profitable major employers and wealthy taxpayers drive the economies in these vast regions which largely are one-industry towns

Would form a macro-view of RE in Houston more based on one's view of price of oil and global demand for oil in face of possibly deflating welfare states in Germany/Japan and a bubble in China (which is utterly dependent upon US buying their junk; China is a commie state with zero innovation and little IQ, not unlike allegedly omnipotent Japan of '80s fame)

Don't forget that, as recently as late '90s, oil was a trivial ~$18/barr; we've had signif nat gas finds in last 5yrs; and much of latest mobile computing/videoconferencing tech makes a lot of business air travel or telecommuting or office space or retailing needs far different than 5-10yrs ago

Lots of moving parts...esp as RE is a levered, illiquid, immobile, long-cycle asset...but high-income jobs and cos. are far more mobile and virtualized than ever before

[EasilyAmused]

Silicon Valley is a one trick pony.

[cheryjohns]

To the OP - get the house.

[wxz44428]

Thanks for the advices. I decided to take the risk, and hopefully things will settle down in months--the stock market (oil services) looks pretty down though.