Since We're Talking About Texas

In the last twelve months the city of Houston created 80,100 jobs.

"Houston is booming as other U.S. cities are contracting -- and not just because oil is over $120 a barrel. While the petroleum industry accounts for almost half of Houston's economy, the nation's fourth-largest city is also benefiting from a surge in health-care demand from baby boomers and immigrants as well as increased traffic through the second-busiest U.S. port, fueled by the decline in the dollar."

"In terms of economic output, Houston is growing at least double the rate of the rest of the country,'' said economist Ray Perryman of the Perryman Group in Waco, Texas.

With a population of approximately two million people that amounts to about one new job for every twenty five residents. By that measure Vermont would have to create 14,000 new jobs to have a comparable growth rate - 14,000 jobs in one year. Its almost unimaginable. What would Vermont look like if we created 14,000 jobs in a single year? And then did it again the next year? And the year after that?

Comments

[Lazarus Long]

As John Lennon said "just imagine". Why, the circumfrential highway might even get completed if that were to happen. Yeah, Right.

[Ward L. Reed,Jr.]

A correction: "The City of Houston created 80,100 jobs." Wrong! The City of Houston has a business-friendly environment that permitted the creation of 80,100 jobs. Overwhelmingly, jobs are created by private enterprise, and particularly smaller companies.

[Greg Decker]

Ward, of course you're correct about who creates jobs - except in Vermont where the State seems to have the upper hand :)

I will point out, however, that I wrote "city" with a small "c" which is a reference to a location. If I was referring to Houston's government as an entity I would have used a capital "C".

[SPS]

So half the city's economy is dependent on oil, a commodity that has double in price in the last 12 months and you think there is a model for Vermont in this? Easy to create new jobs when your principle economic activity has doubled in value with no substantive increase in cost. You think those oil dollars just disappear? No, people spend them on services and goods.

So what is the lesson for Vermont in Houston's success?

[Greg Decker]

SPS, I suggest you take a look at the report linked below that shows who profits from the high oil prices - hint, its not the US oil companies. Integrated oil and gas reported a profit margin of 9.6% last year placing their industry at about 50th place for US companies.

http://www.energytomorrow.org/energy_issues/truth_about_oil_gasoline_primer.pdf

http://biz.yahoo.com/p/sum_qpmd.html

As for how this relates to Vermont, Houston is in the energy business which coincidentally is the same industry Vermont would like to break into with novel 'green' energy products.

Nobody is saying Houston style policies are right for Vermont but what should be understood is that whatever we choose to do we will be directly competing with the likes Houston and every other city and state for that matter. And, so far the pro-growth policies of Houston have proven to be more economically successful than ours. Perhaps we can learn something from their success?

[G. Cross]

The purpose of API according to their website is:

"As the primary trade association of the oil and natural gas industry, API represents more than 400 members involved in all aspects of petroleum. Our association draws on the experience and expertise of our members and staff to support a strong and viable oil and natural gas industry."

If you like the idea of the fox guarding the hen house you will love API. However, you might not want to try your hand at raising hens!

[Greg Decker]

George, are you content to rest your argument with an ad hominid attack on API or is a rebuttal on the merits forthcoming?

The ownership of the worlds oil resources is no secret. It was discussed last week in Congressional hearings, its been in the news, its been discussed in papers published by the US Energy Information Administration (www.eia.doe.gov), etc.