Oil Shock May Slow Texas, But the State's Miracle Is Beyond Crude

IBD ^ | 07/14/2015 | Mark J. Perry

[SeekAndFind]

There's a good reason why Texas is often called "America's economic miracle" — the Lone Star State led the nation in job creation before, during and after the Great Recession.

From 2007 to 2014, the state created nearly 1.6 million jobs, and its employment level grew by more than 14% — 31 times the paltry 0.46% growth rate for jobs nationwide. Under Gov. Rick Perry's leadership, Texas created nearly 28% of all new jobs nationally — the majority of which paid average or above average wages.

Much has been said recently about the Texas economy being tested by a drop in oil prices. As the nation's largest producer of oil and gas, it's natural that Texas would feel the effects of a 45% decline in oil prices over the last year.

The state's oil and gas industry payrolls have decreased by more than 2,000 jobs over the last six months through May — the largest six-month job loss for the industry since the Great Recession.

Some have compared the recent energy downturn to the 1980s, when an oil shock crippled the state. But the state has actively worked to diversify its economy since then.

Case in point: Oil and gas extraction has decreased as a share of economic output in Texas, accounting for more than 19% of the state's economy in 1982, but less than 11% in recent years.

Meanwhile, growth in other Texas industries has exploded as a result of the state's low-tax environment, stable rules and regulations, skilled workforce, and responsible legal environment that have come to be known as the Texas Model. While Perry was in office, CEO Magazine ranked Texas the No. 1 state to do business for ten years in a row, and 1.7 million companies filed to do business in the state.

[Rodamala]

...growth in other Texas industries has exploded as a result of the state's low-tax environment....

Bank.

[bestintxas]

Since the 1980’s, Houston has become the undisputed center of offshore O&G.

Also, Texas has embraced quite a few corporations who moved their HQ there since that time.

compare the list of company HQ there now. It will replace NY very soon as the leader.

http://fortune.com/2015/06/15/states-most-fortune-500-companies/

And it looks after its own, as in http://talkingpointsmemo.com/cafe/with-eye-on-fiscal-armageddon-texas-set-to-repatriate-its-gold-to-new-texas-fort-know

why pay NYC to keep its money?

The Northeasterners tried to damage large Texas companies by making a huge deal out of Enron, but it did not stick beyond that one company.