Hang on, Southeast Texas. It’s On!!!

Hang on, Southeast Texas. It’s On!!!

Today, March 11, 2021, we attended the Southeast Texas Economic Forecast Breakfast. Guest speakers included Dr. Ray Perryman, a renowned economist; Jefferson County Judge Jeff Branick; Hardin County Judge Wayne McDaniel; and Orange County Judge John Gothia. We also heard from ExxonMobil, Mobiloil Credit Union, and other EDC directors in the area.

We attend this every year to better represent our clients and to be able to better prepare for things to come. It is always a very enlightening time and my only complaint is that I cannot write fast enough for notes to bring back to share.

The overall sentiment was extremely positive for the coming months and years, but I first want to share with you just how bad COVID-19 has destroyed our economy in the U.S. Here are some key numbers that will shock you:

  • We lost 22M jobs in just 2 months’ time. WOW!!! This was a record drop, and it is not even close.
  • Oil use went from 101M bbl/d to 72M bbl/d overnight. Good news on this is that we are already back up to 90M bbl/d. So, we are gaining again.

Now, on to the great news. You must first understand that Dr. Perryman is a very well known and published economist. When he speaks, large corporations, world powers, and all kinds of people listen. His clients include 10 branches of the government, Fortune 100 companies, etc. The list goes on. He said some amazing things that we need to be aware of:

  • The U.S. is expected to see 4%-4.4% GDP growth over the next 4-5 years.
  • In the next year, we will see a 2% job growth.
  • Manufacturing in the world is growing vastly and quickly.

Some facts that were stated to back these items up were:

  • ExxonMobil is increasing their refining capacity, as are many other like companies.
  • Entergy is building a brand-new facility in Southeast Texas (Orange County).
  • The LNG industry is growing rapidly and expanding.

Dr. Perryman spoke openly about the environmental movement and he said something that really piqued my interest: “While the move is admirable, it is just a little misdirected. We can never get away from fossil fuels, but what we can do is learn to burn them more efficiently.”

This is where all this new growth is coming from in the energy sector. When large companies like ExxonMobil spend billions on expanding capacity, it is a huge investment and a bet that the growth of the use of these fuels will continue and not lessen, like everyone seems to want nowadays. The manufacturing processes are going to get better, and this will cause the usage of these fuels to increase.

To conclude, it should be noted that Southeast Texas is the center of all energy and, because of that, we have seen so much expansion and growth; however, here is more yet to come. Dr. Perryman compared the Spanish Flu to where we are right now. The Spanish Flu ended and the “roaring 20s” blew in and the country grew exponentially. He stated, “Today, we are going into the new roaring 20s!”  That is a strong statement by a man whose entire livelihood is based on his predictions coming true.

Leave a Reply

Your email address will not be published. Required fields are marked *

Never satisfied with being good, as is evident in these pictures. We recently upgraded our key management system, a…
REO For Sale by David Rose - Over 48,000 SF Industrial WH and Office on 3.21 Acres just off of IH-10…
3,385 SF Shop sitting on 2 IH-10 Corners in Beaumont For Sale by David Rose, CCIM, CPA
The Importance of Environmental Site Assessments
8,717 SF Office For Lease in Beaumont with Highway Frontage (Cardinal Drive)
Watch this short video to learn why you should look for a CCIM to be your commercial real estate expert. FYI - We h…
More fantastic news for SETX economic growth as Entergy Texas plans a new generation facility in Orange County that…
LEASED!!! David Rose represented the Landlord in a 41,270 SF warehouse lease to Howell Furniture. Great job David!
Our newest listing containing 64.9 acres and 2 corners of a highway intersection
Once America's Original Boomtown, Beaumont is Now Booming with New Businesses, Festivals, and Excitement
Wheeler Commercial is the ONLY commercial real estate firm in SETX that utilizes professional photography and profe…
See the June 2021 Texas Labor Market Report full report here
Save the Date: Mardi Gras Southeast Texas is Coming Back to Beaumont in 2022
7 Things to Do in Beaumont in Summer 2021
Orange medical complex takes next step forward
Downtown Beaumont Visitors will soon be able to rent bicycles and take self guided tours of the historic district.…
Arbor Renewable Energy wants to build new facility in Beaumont and spend about $1B to do so and bring more jobs
Another one SOLD by the Wheeler Commercial team! Things are moving. Contact us if you want to move your property!
Optimus Steel announces major Orange County investment
Happy Birthday to the greatest country on this planet! Remember what this day means and the sacrifices it took and…