REDNews January 2015 - Southeast Cover January 2015

Continued from page 12 HOUSTON 14 | REDNews.com up to 140 percent of their cash flow and are relying on the capital markets to make up the gap. But even if the price of oil goes down to $75-$80 per barrel, many plays can still make a 15 percent return. The real question is: Will the boardrooms and shareholders embrace high spending in a lower price environment? Armstrong anticipates that the quick decline of existing production will trigger higher prices over the next six to 18 months. • f we end up with low prices for a while it won’t I last long before we have a correction and go right back up. By that time, the world tends to expand demand with lower prices and we’ll reset the bar and go forward. Imports & Exports • ommerce at the port is the strongest in its C history, and the port is seeing large construction projects in export cargo. • ur manufacturing partners on the Houston O Ship Channel have invested approximately $35 billion in manufacturing and export capability in the last three years and there is a significant increase in exports of manufactured petrochemical

REDNews January 2015 - Southeast Cover January 2015 | Page 14