From the Editorial Team
South Texas is a region
that is directly impacted by
volatility in the energy price
markets. That said, the most
recent declines in oil prices
have had, and will continue
to have, a vastly different
impact than when prices
crashed in the 1980s. The
world economy is slowing
down, while businesses and
households across the nation
are facing a new cycle of
interest rate hikes. How does
our region hold up against
such economic crosswinds?
Will our local economy suffer
a meltdown as it did in the 1980s?
In this edition of the Aqua Book, we first review the recent shale oil cycle, particularly developments since its
peak in mid-2014. We also compare the economic records of communities across South Texas, with a special
focus on Corpus Christi.
Texans are especially proud of their state. After visiting with numerous local business groups in the past year,
I believe that the resilience of our regional and state economies to an imminent meltdown rests largely on the
exceptionally strong confidence and positive attitude shared by Texas entrepreneurs.
In addition to recent developments in the region, we provide an update on the emergence of the New
Economic Paradigm, which promises to push the envelope of industrial development without compromising
environmental quality. The dozen massive industrial construction projects underway near the Port of Corpus
Christi are poised to play a key role in the region’s economic vitality going forward. The more recent trend
towards economic diversification, and the amount of new industrial construction – with the large number of
jobs created – have somewhat insulated the region from many of the adverse effects of the oil price decline.
The final section takes a deeper look at factors that drive long-term economic development. Drawing on a
host of ranking data, we present anecdotal evidence on our region’s competitiveness and quality of life in
comparison with the rest of the nation. Hopefully those findings will help public officials and other decision
makers better understand the strengths as well as weaknesses of this region.
As always, I appreciate your readership and support of our research.
Jim Lee
Director
South Texas Economic Development Center
Texas A&M University-Corpus Christi