Texas Railroad Commissioner Ryan Sitton speaks of Texans’ Opportunity to Lead

June 1st, 2019

Bay Area Houston Economic Partnership President Bob Mitchell, right, congratulates Texas Railroad Commissioner Ryan Sitton for an outstanding speech at the BAHEP meeting.

By Kathryn Paradis

Without the aid of PowerPoint or notes of any kind, not even a few words scribbled on his hands, Texas Railroad Commissioner Ryan Sitton delivered a dynamic, passionate speech to members of the Bay Area Houston Economic Partnership during its General Membership Meeting at the Clear Lake Hilton.

He spoke about The Opportunity to Lead, but his speech was about much more than leadership. First, however, it would be good to know a little of Sitton’s background. He is a mechanical engineering graduate of Texas A&M University. Elected Texas Railroad Commissioner on Nov. 4, 2014, to a six-year term, Sitton is the first engineer to serve as Railroad Commissioner in more than 50 years. In 2015, he was named one of the 40 most influential leaders under 40 in the Houston area. With nearly 20 years of experience in the oil, gas, and petrochemical industries, Sitton is considered a leader in his field. He, no doubt, knows a little something about leadership.

He began by speaking of the tradition of the Aggie Muster, which he had attended the previous evening. He said that Aggies learn from the first day on campus about the importance of believing in something more important than themselves.

“The thing that makes Aggie Muster such a special tradition for us is that it is one of those examples that show how we as a society recognize service,” Sitton said. He later spoke of his own three children who are 10, 13 and 15 years old. He asked, “In the world that we live in today, at what point in our kids’ lives do they begin to learn the lesson that if you want to be successful in this world, you’ve got to make it about people other than yourself? What is it about your life that will echo beyond yourself?”

“When I talk about the opportunity to lead, it always starts with the opportunity to serve.” He explained that this is an historical point in time for Texas saying, “This state produces nearly 5 million barrels of crude oil per day, which is 5 percent of the world’s crude. Texas produces about 24 or 25 billion cubic feet per day of natural gas. That’s close to 5 percent of the world’s natural gas. We refine along the Gulf Coast a little over 6 million barrels per day of crude oil. That’s 6 percent of the world’s refining capacity. Out of the Port of Corpus Christi, we export more crude oil than all of the other U.S. ports combined. We have over 30,000 miles of pipeline in the state. In the last five years, Texas has gone from a strong energy player to arguably the most dominant force on the planet. Energy requires massive industries to produce it effectively, and the State of Texas does it better than any other place on Earth.”

Sitton went on to ask, “Now, what do we do with that? We talk about the opportunity to lead, and opportunities come in a lot of different ways. We in Texas have the opportunity to leverage this position in energy like we haven’t done in a generation. We are changing the landscape in the world. The question is what do we do with that? How do we capitalize on that opportunity?”He said that the world is hungry for affordable, reliable energy that is produced safely, and Texas can provide that better than anyone else.

BAHEP gets 2019 economic overview

May 1st, 2019

Bay Area Houston Economic Partnership President Bob Mitchell, from left, shares a light moment with Galveston County Commissioner Ken Clark, CLC Properties CEO John Wilkins, and Houston City Councilman Dave Martin.

By Kathryn Paradis

The outlook for the Texas economy in 2019 is good, but not so much for the global economy, according to research economist Harold Hunt, Ph.D., with Texas A&M University in Waco.

The Bay Area Houston Economic Partnership invited him to speak at its annual State of the Economy luncheon, held March 28 at Lakewood Yacht Club in Seabrook. Hunt opened his presentation by cautioning, “It’s going to start off pretty grim. I need you to hang with me, because it’s going to get better at the end.”

He reported that the global economic growth is slowing, vulnerable, and unsynchronized. German industrial production is falling. Brexit is a confusing mess, which increases uncertainty in the European Union. Japanese growth remains weak while Chinese economic growth is also decelerating. Hunt said that the slowing of Chinese GDP (Gross Domestic Product) growth is very much on the radar and is “really a big deal.” Hunt explained, “The fear is obviously that if China goes down, then the EU goes down. If the EU goes down, then we go down. There is a domino effect, and that is why we are seeing so much in the press.”

POSITIVE SIGNALS 
He then turned to the positive aspects of the U.S. economy. U.S. consumer confidence is stronger than it was 12-15 years ago, according to Hunt. The U.S. Bureau of Labor Statistics reports that inflation expectations over the next five years are still quite low at an average of 2 percent.

Is it possible to have a recession this year? Hunt explained that it isn’t impossible. He said that real GDP would have to fall a lot. “To get a recession this year, with GDP at 2.9 percent last year, the GDP would have to drop like a rock. Based on the hard data I’ve just showed you, I just don’t see that happening,” he said.

TEXAS OUTLOOK?
Overall, Hunt stated that the 2019 economy should be slower than 2018, but 2019 will still be a good year for Texas. Houston will see $2.5 billion more in construction contracts versus last year. As with Texas overall, an oil price in the mid-$50 to $60 range per barrel will keep the Houston economy stable, according to Hunt.

(Editor’s note: Dr. Hunt’s entire slide presentation with many, many more details can be viewed as a pdf on BAHEP’s website at https://www.bayareahouston.com/content/News_Events_and_Reports/reports.)

Bay Area Houston Magazine