Texas has always been what many call a “The O&G state” or “The O&G capital”. But has it always been this way? Did you know that because of high oil prices, a disproportionate share of America’s economic growth over the past decade has come from Texas? The gross domestic product of the state is $1.6 trillion; if it were an independent country, its economy would settle in around tenth place, eclipsing those of Canada and Australia. Another interesting fact about Texas is that compared to its other counter part state; California, the job growth has expanded four times more than Los Angeles!
Then you remember a few years ago, oil prices really fell and Texas suffered drastically. In 2016, for the first time in twelve years, the state’s job growth lagged behind that of the nation as a whole. Thousands of people came to Texas to make it their home and/or start a new business in the oil and gas industry and when the oil prices fell so did they. Many people lost their jobs, companies went bankrupt, even home sales came to a halt. Keep in mind this doesn’t count the financial impact on the pipeline, storage, servicing, and shipping companies that depend on the energy business.
Fast forward to today, companies in Texas found a way to work with the low oil prices by introducing new technology and new ways that would be beneficial to them and their employees without having to loose more profit. Texas has finally begun to diversify, and now tops that of California in exporting technology, from semiconductors to communications equipment.
Check out this story here to get the full background on how Texas came to be in the center of the oil and gas hub: https://www.newyorker.com/magazine/2018/01/01/the-dark-bounty-of-texas-oil