Tallying Texas Triangle Office Construction; Predicting the Oil Turnaround

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Photo of 1825 San Jacinto St.: elnina via Swamplot Flickr Pool

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3 Comment

  • Re: Majority of Oil Execs Think Downturn to be Over by End of 2017
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    I don’t work in the industry but there’s plenty of business stories out there that lead me to think that it may be more like 2018/2019. There’s still plenty of supply out there (currently producing and in the wings) and demand is a still anemic. Any price increase from $45/barrel upwards is going to be counteracted by more supply coming online, which just slows any further increase.
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    I’m not wishing continued pain on my O&G neighbors but the reality is that there may be a few more years to go for this malaise.

  • Your best source for any local Houston economic forecasts is https://www.bauer.uh.edu/centers/irf/ Basically every executive HBJ or Realty News Report interviews just parrots what they hear at IRF’s symposiums. Just keep in mind that IRF’s forecasts have always been on the optimistic side, expecting a magical v-shaped recovery to suddenly kick in several months down the road.

  • Wolfie,

    I am in the business and I agree with you. A lot of wells are currently shut in and when the price rises high enough they can recommence production with just a little effort. Until then, I am looking for a few great real estate deals…