Diverse Economy Keeping Houston Solid Despite Drop in Fuel Prices and Rise in Electricity Prices
Certainly, the drop in oil prices is due to affect Houston’s economy; however, the industrial diversification of Houston’s economy renders the situation less dire than anticipated. Job opportunities in non-energy markets continue to rise, especially in the construction and medical industries.
In addition to oil prices, the multibillion dollar overhaul of electric generation plants will cause another economic change: a nation-wide rise in electricity prices. The solid Texas economy will provide another relief when it comes to this because its non-energy industrial boost has caused an increase in power demand, bringing more income to the system which will mitigate the rate at which the prices will rise.
In contrast, neighboring state New Mexico has seen a decrease in its need for power. The difference is the low prices and diverse economy in Texas. What is unclear is how long our high demand for power will slow the rise in electricity costs even with more businesses moving to the area and continuing to expand the economy.
A contributor to the overall rise in electricity prices is the general shift towards renewable, cleaner power. How consumers will react to this inevitable change depends on power companies and how quickly they adopt.