Oil fell as much as 31% over the weekend

[lipbalm]

https://www.ccn.com/this-is-how-oil-...-0-yes-really/

At this point I would not say never. Everything is re-setting, the USA will not be THE world superpower after this. Those who can accept and adapt to the new reality will come out ahead. Forget about how things were, they are NEVER coming back. I am struggling with this myself but logic tells me I must forget the past, the way things were is gone forever.

[Redlionjr]

Originally Posted by lipbalm

Midland and oddessa are about to become dusty ghost towns like before. Houston, my god I don't even want to imagine but it will be horrible (maybe Detroit?? at this point anything is possible), most of economy is O&G dependent. Stick a fork in us, we are done.

Houston right now isn't face the same uphill battles that Detroit faced that led them to become the city it is today. Detroit's decline was the result of a couple of things. 1. Being too dependent on the Auto industry 2. Racial Tension and 3. Decades of Bad leadership.

Houston's economy will probably take a big blow. We're talking the leading industry in this region all of a sudden not becoming a powerhouse anymore. That's going to be major setback for the city no doubt about it. The way the city will grow and businesses it can attract will probably take a step back in comparison to our neighbors up in Dallas and Austin. Job growth in general was already down this year in comparison to last year around the same time in Houston. Also Houston being late to the tech industry party will probably bite us in the ass compared to cities with already established tech industries considering for now that industry clearly seems to be more stable.

With all that said Houston has a more diverse economy than Detroit did when it started to fold. Healthcare industry will probably expand. There's still other industries that Houston performs decent in that should bounce back as well. Those that are tied at the hip with Oil and Gas will probably fall by the waist side or learn to adapt. My job for instance has a lot of O&G cilents and although business has been slow, we've seen an increase in dealing with solar energy companies now.

Plus Houston doesn't have racial tensions like Detroit had back in the 60's and the politicians aren't notoriously corrupt as Detroit's. So Houston will take a loss, probably won't be a powerhouse for a while but I can't see it going complete Detroit because of this.

[NTexas2010]

Originally Posted by lipbalm

https://www.ccn.com/this-is-how-oil-...-0-yes-really/

At this point I would not say never. Everything is re-setting, the USA will not be THE world superpower after this. Those who can accept and adapt to the new reality will come out ahead. Forget about how things were, they are NEVER coming back. I am struggling with this myself but logic tells me I must forget the past, the way things were is gone forever.

Be mindful that a doom and gloom post, coupled with a link to a CCN article (a website dedicated to the "truth" and gospel of cryptocurrency) is probably going to give a number of people pause before taking your post seriously.

[ParaguaneroSwag]

Originally Posted by lipbalm

https://www.ccn.com/this-is-how-oil-...-0-yes-really/

At this point I would not say never. Everything is re-setting, the USA will not be THE world superpower after this. Those who can accept and adapt to the new reality will come out ahead. Forget about how things were, they are NEVER coming back. I am struggling with this myself but logic tells me I must forget the past, the way things were is gone forever.

Nothing similar. As you stated, if the oil price were to stay low as it is for a longer time than anyone imagined (as I said overtime it’ll balance when it costs more to supply than it does to maintain), then blue-collar oil ran towns will be the hardest hit. As you mentioned, Midland and Odessa, or Sulphur, LA and so forth. But for Houston, say hypothetically that it stays that way for years and years to come. It’s not remotely similar to the Detroit situation.

First, the economy has drastically diversified since the 80s. Detroit was way too automotive centric. Forget the port and forget healthcare and forget plastic manufacturing. There’s actually presence of many non-oil related companies in Houston. I’m not about to name every single company, but Minute Maid, Fertitta Ent, Sysco, Waste Mamagement, PROS, Imperial Sugar, HostGator, etc. Just random companies off the top of my head. Detroit didn’t have much going on at all outside of automotive. Houston still has plenty of diversifying to do before it can be completely healthy, but the diversification is enough to keep the economy rolling, yet still take a major hit. Oil as of now is still the base ingredient, albeit not as much.

Also, just like globalization is becoming a big thing, the economy right now is at a point where Houston (and any other city) benefits from eachother. When the national economy is doing well, Houston will feed off of it. The problem is that it isn’t doing well and there is going to be a recession both in the oil field and every other field. If oil pulls out of the recession before the rest of the economy, it’ll be a boost for Houston, but Houston will still suffer along with the national economy even if oil prices skyrocket.

Thirdly, Detroit had way more problems than an undiversified economy.Now you will see plenty of layoffs, and plenty of canceled projects and closures, but nothing on the lines compared to 80s Houston or Detroit.

[As Above So Below...]

Originally Posted by ParaguaneroSwag

Nothing similar. As you stated, if the oil price were to stay low as it is for a longer time than anyone imagined (as I said overtime it’ll balance when it costs more to supply than it does to maintain), then blue-collar oil ran towns will be the hardest hit. As you mentioned, Midland and Odessa, or Sulphur, LA and so forth. But for Houston, say hypothetically that it stays that way for years and years to come. It’s not remotely similar to the Detroit situation.

First, the economy has drastically diversified since the 80s. Detroit was way too automotive centric. Forget the port and forget healthcare and forget plastic manufacturing. There’s actually presence of many non-oil related companies in Houston. I’m not about to name every single company, but Minute Maid, Fertitta Ent, Sysco, Waste Mamagement, PROS, Imperial Sugar, HostGator, etc. Just random companies off the top of my head. Detroit didn’t have much going on at all outside of automotive. Houston still has plenty of diversifying to do before it can be completely healthy, but the diversification is enough to keep the economy rolling, yet still take a major hit. Oil as of now is still the base ingredient, albeit not as much.

Also, just like globalization is becoming a big thing, the economy right now is at a point where Houston (and any other city) benefits from eachother. When the national economy is doing well, Houston will feed off of it. The problem is that it isn’t doing well and there is going to be a recession both in the oil field and every other field. If oil pulls out of the recession before the rest of the economy, it’ll be a boost for Houston, but Houston will still suffer along with the national economy even if oil prices skyrocket.

Thirdly, Detroit had way more problems than an undiversified economy.Now you will see plenty of layoffs, and plenty of canceled projects and closures, but nothing on the lines compared to 80s Houston or Detroit.

I tend to take a middle of the road view.

Comparing Houston to Detroit is asinine I agree. People forget that Houston is not the oil capital of the world, but rather the energy capital of the world. People will always need energy. Houston's economy has diversified, but youre still talking roughly 40% of jobs that depend on energy.

That said, I think Houston will lose some economic prominence. Were bound to get layoffs and we will lose quite a few small companies. The big dogs will always be here.

Houston's vision also calls for green city that runs totally on green energy. The big energy giants like Oxy, Halliburton, Baker Hughes, Shell, Exxon, etc. are perfectly fine with that because they will be the ones still running things when green energy becomes the norm. However, it will drive the smaller oil companies and oil service companies under. I doubt that group is happy with the city for that. Nonetheless, it has to happen if we want to leave any sort of planet to our kids.

[TexasTallest]

Oil prices could plunge to $10 a barrel - Forbes

[kreeyax]

Originally Posted by TexasTallest

Oil prices could plunge to $10 a barrel - Forbes

What happens when there's nowhere to store the oil?

[lipbalm]

Originally Posted by NTexas2010

Be mindful that a doom and gloom post, coupled with a link to a CCN article (a website dedicated to the "truth" and gospel of cryptocurrency) is probably going to give a number of people pause before taking your post seriously.

Well, I do hold crypto along with precious metals, makes me sleep a little better at night, especially when I hear the fed say they can print "unlimited" amount of money. LOL

[NTexas2010]

Originally Posted by lipbalm

Well, I do hold crypto along with precious metals, makes me sleep a little better at night, especially when I hear the fed say they can print "unlimited" amount of money. LOL

I can see value in precious metals, both for their intrinsic value and practical applications.

Crypto... debatable and highly volatile, subject to security breaches, etc etc.

Not to derail the thread. Just pointing out that a website that would have something to gain in the loss of a commodity's value is hardly unbiased. Plus, there were other arguably less fringe websites reporting similar (albeit without so much certainty in their writing) information that would raise fewer eyebrows.

Back to oil - carry on.