By Catie Dixon, Bisnow Texas
Bisnow gathered three of Houston’s leading energy economists and analysts at yesterday’s Impact of Oil and Gas on Real Estate event, and they’re all pretty much writing off 2016 for any improvement in the oil market. And yet all three ended on a really positive note about Houston. Here’s what they’re seeing.
Greater Houston Partnership regional economist Patrick Jankowski says the US is working to decrease production to correct the glut of oil on the market. But it’ll be offset by Iran, which aims to increase production by 1 million barrels by the end of the year. He doesn’t think supply and demand will balance for at least another 18 months. Institute for Regional Forecasting economist Adam Perdue thinks it’ll take us longer to decrease our production than people predict. We still don’t fully understand shale and where the sweet spots are, so supply can be unpredictable. He thinks it’ll probably balance in 2017. Pictured is our economist forecast panel: Energy Architecture managing principal Russell Kelly, Patrick, Adam, and UT Center for Energy Economics senior energy adviser Deniese Palmer-Huggins.