by Nancy Sims
Pierpont Communications
Whew!!! That’s the sound of a collective sigh of relief from Texans when we realized the oil spill headed away from our coast.
We had the same reaction when the big storm churning in the Gulf in 2005 blew in a different direction and made landfall in New Orleans. And yet, Hurricane Katrina impacted Houston too. We hosted the relocation of more than 100,000 New Orleans residents as well as providing support and assistance to their businesses.
The same holds true for the oil spill. While the tar balls may not be washing up on Galveston beaches, the economic impact of the spill is very real in our city.
Three of the main companies involved are headquartered in or have their North American headquarters in Houston. Many other suppliers of products and services to the Horizon live in Houston. And, most importantly, we are the center of oil exploration and production in the United States, and much of the world.
Local business operations have been hit hard and this will create economic ramifications in the Houston area. If drilling in the Gulf is halted by a moratorium, many companies in Houston will feel the economic impact of that decision. Increased scrutiny and potential new government regulations will increase the costs of drilling in the Gulf of Mexico.
How will any of this affect you? It’s fairly simple. For as much as we have worked to diversify Houston’s economy, we are still very closely tied to the energy industry.
We pride ourselves on the fact that we are home to numerous energy companies, one of the top refining areas in the world and one of the top tonnage ports. As a result, a large amount of jobs in this region are tied to these energy-linked industries.
Whenever the energy industry takes a hit, Houston will take one too. One of the biggest concerns about this oil spill is whether it will ultimately send more jobs overseas. If we make it more difficult to drill off the American coastlines, companies will naturally migrate to where the oil supply is easier to collect.
For the last several years, many of our local energy companies have been downsizing jobs and consolidating their services in other parts of the world. We can expect to see even more of that movement in light of the recent spill.
On a more positive note, Houston has remained at the heart of trying to solve the challenges presented by the failed blow out prevention. Our city’s energy experts have been working together to identify solutions and ways to stop the flow of oil into the Gulf.
Houston has also been focusing its energy efforts on alternative fuel and energy sources. Many of our hometown companies are proving to be leading innovations on new energy resources.
Houston is a most resilient city and we have survived the economic misfortunes of recent times better than most. I am confident that we will work our way through this latest punch as well.
Our entrepreneurial spirit helps us tackle the challenges that we face and come out a stronger and more improved city from the experience.