Plummeting prices of energy has forced Texas to cut approximately 60,000 jobs in 2015. Oil and gas companies in Houston have reduced their production and slashed their investments and laid off geologists and engineers due to the continuing slump in oil prices.
However, the hundreds of forest-like and motion-less construction cranes stationed around the state tells only one side of the story. A number of the factors that pushed oil prices down also encouraged investments amounting to tens of billions of dollars to build new processing plants in their bid to take advantage of the cheap and abundant supply of gas and oil.
A year ago in February, Halliburton slashed 5,000 jobs in its energy company, representing 8 percent of its workforce due to oil prices that crashed down to its seven year low.
The energy company also tried to ride the crest of cheap oil by consolidating its operations in 20 countries and even closed down its facilities in two countries.
"Our industry has turned down faster than anyone ever expected," said Dave Lesar Halliburton CEO and Jeff Miller, President in a memo to their employees as reported by CNNMoney.
The two company officials said it's now evident that business opportunities will be "much worse than anticipated" coming into the year.
Currently, Chevron Corp and Exxon Mobil Corp are constructing large chemical crackers for the processing of polyethylene from natural gas. Furthermore, logistics firms have already built new warehouse spaces as part of their plan to ship the PE to global plastic industry customers.
There is record traffic at present at the Houston Port Authority mainly due to the shipment of chemicals output. This trend is expected to continue, according to port officials.
In all of the Baytown area, located on the outskirts of Houston, construction projects approximately worth $8 billion are expected to be completed this year, and an additional $22 billion by 2017.
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