Houston is the center of the US oil industry. A top oil banker in the city said that the city needs to accept the transition to cleaner energy to ensure its economic future.
“If Houston wants to continue to be the world’s leading energy capital, it needs to become a leader in new forms of energy,” investment banks Tudor, Pickering and Holt’s chairman Bobby Tudor told the Financial Times.
Houston is the fourth largest city in the United States. It has been driven by the oil and gas industry for more than a century and has seen its economic growth become shale The industry takes off.
However, environmentalists and some city officials have long warned that it needs to start planning for the future of oil. As the oil boom begins to fade, the growth of the energy sector and the shift of capital to low-carbon technologies, Tudor is part of a growing number of people in the industry reaching the same conclusion.
Tudor said that the oil industry “is extremely unlikely to contribute to Houston’s growth in the next one or two years, as it has done in the past one or two years.” “We don’t think it will disappear, but the growth rate will be much slower.”
Tudor is a veteran with more than 30 years of industry experience. He was a partner of Goldman Sachs before leaving alone in Houston in 2004. Tudor, Pickering, Holt, & Co became the leading banker in the U.S. shale region, putting him in a leading position in the country’s oil boom, and the comments given to him in the Houston business community are of great significance.
After several years of hard work, the city has foreseen the risks of the energy transition. economic pressure In the US shale oil industry, the industry is now facing tremendous shareholder pressure to control growth and focus on returning cash to investors.
That new discovery Consumer discipline This means that although US crude oil prices have exceeded US$70 per barrel in recent weeks, employment growth in the city’s oil industry has slowly recovered this year.
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According to data from the business group Greater Houston Partnership, the share of the oil and gas sector in Houston’s GDP has fallen from 40% in 2014 to less than 20%.
Tudor believes that many people in Houston, including the large oil companies that call it home, now see opportunities in the energy transition, while they used to only see risks-especially in the The rise of wind power In the state.
Tudor said that the city should focus not only on renewable energy, but also on emerging technologies such as hydrogen energy and carbon capture and storage. Houston’s origins in the fossil fuel business and familiarity with large-scale energy infrastructure make it a leader.
“Imagine what it would be like to build a new large hydrogen pipeline between New York City and Boston. This is impossible. We have a lot of existing advantages here,” he said.
“Generally speaking, one thing that Houstonians and Texans are very good at is seeing business opportunities that can be seized. We really think that the business opportunities related to the energy transition are really good.”