Impact of Shale Play on Harris County
October 23, 2014
Quentin Hart
McCord Development, Inc.
(713) 860-3035
qhart@mccorddev.com
Unconventional shale continues to evolve
The existence of large shale reserves is not new, but the methods of extracting the
resources are and they are still evolving
New Technology
Drilling methods
Materials
Exploration tools
Water treatments
Transportation
New Meanings
Cheap feedstock
Petrochemicals LNG exports
Gas fired power
Cheap industrial fuel
IMPACT OF SHALE ON HARRIS COUNTY
Source: Wall Street Journal based on EIA data
OCTOBER 23, 2014
Harris County is feeling the impact because…
(1) It’s the energy capital of the world –
The synergies in the industry make it the
best place to locate. Companies can find:
(2) The impact is far-reaching – A trickle
down effect is benefiting numerous
industries, notably:
• The commodities
• Distribution of Goods: More jobs =
maturing end user market
• Centers of trade & logistics
• A capable workforce (we need more!)
• Leading research & technology
• Industrial Service & Manufacturing:
+$35B nearby energy capex =
proliferation of service providers
• Business friendly policy
• Low cost of electricity
• Their vendors, suppliers and
customers…
+3.7 MM growth
over 30 years!
Houston is headquarters to more than
3,600 energy-related establishments
Source: Houston-Galveston Area Council
IMPACT OF SHALE ON HARRIS COUNTY
OCTOBER 23, 2014
A closer look at the supply chain effect…
IMPACT OF SHALE ON HARRIS COUNTY
OCTOBER 23, 2014
Companies are growing, adapting, dividing, investing…
“Siemens bets big on shale with $7.6
billion Dresser-Rand Purchase”
New real estate assets acquired
through purchase
“Southwestern Energy snaps up assets
in Marcellus, Utica from Chesapeake”
Constructing new corporate
headquarters
“National Oilwell Varco
Completes Spinoff of NOW Inc.”
New office & distribution
center recently completed
“Shell’s Houston-based MLP
launches IPO”
Expansion of Shell Woodcreek
Campus underway
“FMC Technologies Makes A Play
In Shale”
Corporate campus & headquarters
consolidation underway
IMPACT OF SHALE ON HARRIS COUNTY
OCTOBER 23, 2014
And an interesting dynamic
The Skilled Workforce is Becoming a
Key Focus for Companies
• Houston has added more than
three jobs for each lost in the
recent recession
• Engineers per capita rank second
only to Silicon Valley
• Younger generations have a
differing expectations
• Good pay – Graduates of the South
Dakota School of Mines &
Technology earned more than
Harvard grads in 2012
Companies Working to Attract &
Retain Top Talent
Salary
Education
Training
Benefits
Mentoring
Environment
Wellbeing
Access
Convenience
Companies are looking at new ways
to differentiate their talent strategy
IMPACT OF SHALE ON HARRIS COUNTY
OCTOBER 23, 2014
A facilities strategy evolving to meet new needs
Environment
Wellbeing
Access
Convenience
Innovation
Productivity +
Security Cost Control
Collaboration Space
IMPACT OF SHALE ON HARRIS COUNTY
Consolidated campuses that are in
master planned environments and
near great housing are best meeting
these needs
OCTOBER 23, 2014
Case study: Generation Park
IMPACT OF SHALE ON HARRIS COUNTY

4,000 master-planned acres

10 minute drive to IAH

15 minute drive to The Port

20 minute drive to Downtown

11,000 new homes being
constructed next door

Great logistics: rail, taxadvantaged FTZ, & 5
interchanges to Beltway 8

Robust infrastructure –
underground electric, offsite
detention, water direct from the
source

Sites with scale to accommodate
any user
OCTOBER 23, 2014
An environment to attract & retain talent
Banking
Breakfast Shops
Bike Shop
Postal Service
Dentist
Physical Therapy
1MM SF office & industrial under construction
Healthcare & Imaging Center
Sandwich Shop
Full Service Restaurants
Coffee Shop
Child Development
Pet Care
Fitness Center
Computing Supplies
Cafe
Automotive Care
Cellular Services
Crossfit Gym
Dry Cleaning
Barber Shop
Fitness Apparel
IMPACT OF SHALE ON HARRIS COUNTY
OCTOBER 23, 2014
Quentin Hart
McCord Development, Inc.
(713) 860-3035
qhart@mccorddev.com