Photo: Moment RF
Current trends in the energy industry are promising for Texas, according to observers, noting that key cities still depend heavily on oil and gas.
“From boom to bust, boom to bust, these are the best of times; these are the worst of times,” chuckled Phil Flynn, senior market analyst at the Price Futures Group.
By some estimates, oil and gas support 30 percent of the economy of Houston. Looking at recent months, analysts say the industry’s fundamentals are strong and getting stronger and today’s political environment is a major part of the equation, as the Trump administration demonstrates support for American energy.
“they’re in better shape than they’ve been in the past, especially because they have an administration that understands the energy industry,” Flynn exclaims, “and they’re not fighting the industry at every point.”
Flynn says the ups and downs of the industry are a well-worn story dating back more than a century. He predicts that won’t change but says the current outlook is overwhelmingly positive. “You had the government hit them with crazy regulations,” he recalled. “And because of that we’d seen a pullback, mainly because of that uncertainty. So I think it’s going to change. We’re going to see an incredible boom cycle.”