Houston is the energy capital of the world. When oil is at $80, this city is swimming in money. When it drops to $40, the layoffs start within weeks. Here's what the cycle actually looks like for regular people.
The boom (oil above $70):
- Hiring is aggressive. Every major and service company is posting roles.
- Salaries inflate. Entry-level petroleum engineers start at $90-110K.
- The Galleria area restaurants are packed. Westchase and Energy Corridor offices are full.
- Real estate in Memorial, River Oaks, and West University spikes.
- Everyone is confident. Too confident.
The bust (oil below $50):
- Layoffs come fast. Not gradual. Companies cut 10-20% of workforce in a single day.
- Contractors are first. Then "restructuring" hits full-time employees.
- The Westchase/Energy Corridor corridor empties. Office vacancies spike. Restaurants close.
- Real estate softens. Suddenly those $500K homes in Katy are $420K.
- The ripple effect: oil workers stop spending, restaurants lose customers, landlords lose tenants, everyone feels it.
How to survive the cycle:
- Save aggressively during booms. Live on 60% of your income if you can. The bust WILL come.
- Keep your resume updated always. Don't wait until layoffs are announced.
- Network constantly. In Houston energy, who you know determines whether you survive a layoff or not.
- Diversify your skills. The engineers who survived the 2020 bust were the ones who could code, do data analytics, or pivot to renewables.
The energy transition: Every major oil company in Houston now has a renewables or energy transition division. It's not replacing oil anytime soon, but the smart career move is being bilingual — traditional energy AND clean energy. The money is moving.
Source: Bureau of Labor Statistics — Houston MSA employment data, personal experience through the 2015, 2020, and 2023 downturns
The transition to renewables is real but slow. My company created a "new energies" division. It's 5% of revenue and 50% of the press releases.