Negative impact on Houston O&G related (Austin, Midland: real estate, 2014)

[ethanw]

Good article and very sad

Texas, Once a Star, Becomes a Drag on the U.S. Economy - WSJ

[Matadora]

I read this yesterday and while it is sad to see this occurring in Texas at least Houston has a very diverse economy not entirely dependent on Oil.

Texas, Once a Star, Becomes a Drag on the U.S. Economy

Houston has a thriving medical center complex and a bustling trade port, the second largest in the U.S. by total tonnage. But the fall in oil prices is wearing on the metro area, home to nearly 6.7 million people.

The region’s unemployment rate in August was 5.8%, up from 4.9% a year earlier—one of the largest year-over-year jumps among big U.S. metro areas. The vacancy rate in Houston skyscrapers has risen to nearly 16% from 11% when oil prices began falling in summer 2014, according to NAI Partners, a commercial real estate firm.

The unemployment going up by 1% as well as skyscraper vacancy up by 5% makes sense when 70,000 energy-related jobs have disappeared in Houston.

[radiolibre99]

The comments section of the article is interesting. Many people find the article a bit weird because it talks as though Houston = Texas, and one guy featured who moved from Houston to ATL is evidence of coming havoc? I mean isn't ATLs unemployment rate similar or a little lower than Houston's? GA vs Texas have similar unemployment rates as of august 2016. And that's with Texas seeing a downturn.

I think Houston and maybe Midland dragged down the average for Texas, because North Texas and Austin are still booming. Don't know about SA but I am assuming it's doing ok. Being a drag on the national economy seems a bit of a stretch, no? Other states have worse unemployment rates and more sluggish growth rates.

Either way it sucks Texas was hit so hard.

[Jack Lance]

Originally Posted by radiolibre99

The comments section of the article is interesting. Many people find the article a bit weird because it talks as though Houston = Texas, and one guy featured who moved from Houston to ATL is evidence of coming havoc? I mean isn't ATLs unemployment rate similar or a little lower than Houston's? GA vs Texas have similar unemployment rates as of august 2016. And that's with Texas seeing a downturn.

I think Houston and maybe Midland dragged down the average for Texas, because North Texas and Austin are still booming. Don't know about SA but I am assuming it's doing ok. Being a drag on the national economy seems a bit of a stretch, no? Other states have worse unemployment rates and more sluggish growth rates.

Either way it sucks Texas was hit so hard.

So I guess a couple of years ago the "Nation" was a drag on Texas or Houston more specifically !

BTW Houston is still "NOT" in a recession...

[Matadora]

I hated seeing the population of Houston increase by as much as it has since I moved away in 2009. It takes me almost twice a long to get from point A to point B whenever I am home visiting.

[Yellow pool of piddle]

Originally Posted by Matadora

I read this yesterday and while it is sad to see this occurring in Texas at least Houston has a very diverse economy not entirely dependent on Oil.

Texas, Once a Star, Becomes a Drag on the U.S. Economy



The unemployment going up by 1% as well as skyscraper vacancy up by 5% makes sense when 70,000 energy-related jobs have disappeared in Houston.

You do realize things will never be the same again? This wasn't a hiccup like 2008. The Saudis had to do something about the ever dwindling pressure from natural fracturing pushing their oil out of the ground. They are totally revamping the energy market. At the same time, the United States is continuing its push to transition from an energy importer to that of an exporter.

The Permian Basin is incredible. They use to say it had two levels. They now say it has many levels. I don't think anyone knows.

The Gulf of Mexico is even more incredible. They have barely scratched the surface concerning its potential.

[Matadora]

Originally Posted by Yellow pool of piddle

You do realize things will never be the same again?

This is a very obvious occurrence.

Not sure what the rest of your post had to do with my post.

[Rampart1945]

Originally Posted by Yellow pool of piddle

At the same time, the United States is continuing its push to transition from an energy importer to that of an exporter.

By what year do you expect US oil production, currently around 9m b/d, to exceed the 18m b/d consumed domestically?

[radiolibre99]

Originally Posted by NDUR

Could this be the beginning of a political reversal in Texas (which gets more and more likely with each slip-up Drumpf makes), now that the boom times of Texas has been exposed as a factor of the market, and NOT the result of good ol' fashion conservative politics?

I thought leaving it up to the market WAS the conservative politics and not having an activist state (and local) government?

[Yellow pool of piddle]

Originally Posted by Matadora

This is a very obvious occurrence.

Not sure what the rest of your post had to do with my post.

The focus shouldn't be placed on a barrel of oil. Those companies didn't want to let those employees go. After having to let them go, they aren't about to hire new employees until they get a clear direction of the new market.