November 24, 2020 Read More →

Houston likely to suffer fallout from ExxonMobil’s decline

Houston Chronicle:

Exxon Mobil has long been the bluest of blue-chip businesses, earning a reputation as a company that could be counted on to deliver steady returns year after year, decade after decade.

While investors benefited, so too did Houston. The nation’s largest oil company helped expand the economy and population of the nation’s energy capital, sparking development of master-planned communities such as Kingwood, world-renowned parks and cultural institutions.

When the Irving-based behemoth decided to close many U.S. facilities and bring those employees to the area in 2015, it built a 385-acre campus in Spring that houses about 10,000 workers. The facility helped reshape Houston’s northern exurban region with expansive development.

“For a long time, Exxon has done well and Houston has done well,” said Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis, a think tank pushing for sustainable energy. “But I would say in 15 to 20 years, you’ll have a much smaller oil and gas industry in Houston. Your fiscal economics and economic development choices are going to have to change.” 

[Paul Takahashi]

More: Why Houston takes the hit when Irving-based Exxon falters

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