H ouston’s economy has been riding the oil roller coaster for over a century, and the highs and lows of the world’s most volatile (and most popular) commodity have left deep marks on the city’s landscape and psyche.
These booms and busts have defined entire eras of the city’s and the state’s history, from the first blowout at Spindletop near Beaumont that ushered in the oil age to the downturns in the 1980s that led the region to diversify its economy.
To better understand how the boom-bust cycle works and how it shapes our city to this day, I spoke with University of Houston economist Ed Hirs, a veteran in the energy industry and longtime Houston resident.
What drives Houston’s economy during a boom, and what triggers a bust?
Oil. Duh…