Houston Economy Feels Strain Amid Energy Market Uncertainty

By Luke Rucker

Recent data has indicated that the U.S. GDP contracted in the first quarter of 2025, marking its worst performance in three years. 

Houston’s economy is showing signs of strain as energy prices dip and industry leaders brace for instability tied to shifting trade and policy conditions. 

With many universities and healthcare institutions facing layoffs, energy experts report that the oil and gas sector is also feeling the pressure. 

Oil prices have dropped, making it unprofitable for many companies to increase production. “We know oil producers will not drill new wells unless the price of oil is over $70 a barrel,” said Ed Hirs, Energy Fellow at the University of Houston. “We will see the rig count drop significantly.” 

While some policymakers maintain that current strategies will eventually yield positive effects, analysts warn that continued uncertainty could spell trouble for Houston and the broader Texas economy. 

For students and professionals alike, understanding the intersection of policy, trade, and energy is essential to staying resilient in an evolving economic landscape. In this shifting environment, UH Energy remains committed to equipping its community with the knowledge and tools to lead in times of change. 

Top Stories

  • Houston Economy Feels Strain Amid Energy Market Uncertainty

  • Building Lower-Carbon Industry Is About Future-Proofing Our Economy

  • UH Energy Fellow, Experts Examines Pros and Cons of EV Adoption