Breaking into Houston energy groups without being from Texas
A big question I'm getting while networking w/ Houston energy groups is Why Houston? as I am not from Texas.
My answer so far is that I want to work in oil & gas bc of some aspects of the industry (e.g. volatility).
I've never been to Houston and probably won't go with this corona mess.
Would love to hear insight from someone who has broken into Houston banking from outside of Texas.
One of these is not like the other. Agree on the experience piece, but the A&M degree is most valuable at an undergrad level. I'm not even sure I've run across anyone with a Mays MBA in the IB space. McCombs and Jones are the way to go.
Maybe you have family in Houston or you like the cost of living advantages relative to other financial hubs such as NYC and San Fran. To my knowledge most banks have structured analyst and associate bases, which typically don't vary for cost of living, so theoretically you are making more. Not to mention, there is no state income tax in Texas, so there is cost savings on that end. Some say the people in Houston are kind relative to some other cities. Also, things don't move as fast down here and people aren't as dick hard about their career. Personally, I love how you get both the big city feel but also have a sense of space with lots of housing with back yards and shit like that. You can also tie it back into the whole O&G thing saying you want to be where the action is, Houston is the energy capital of the world with most O&G companies headquartered here. Only downside to Houston is the O&G outlook and energy transition occurring. You can reference Bobby Tudors recent talk on this for more color, it's quite interesting.
Houston analyst here - not entirely clear what role you're looking to break in to (analyst, associate, intern) - but regardless, as long as someone has a logical story and demonstrated interest in Energy, that's good enough for me.
There's a pretty good summary of some of the compelling points to choose enter the O&G IB landscape in this thread here: https://www.wallstreetoasis.com/forums/oil-and-gas-going-to-shiteffect-…
Keep in mind also that oil is a shitshow even outside of coronavirus. There is a decent chance that the market bounces back from the virus, and oil is still in the $30s.....that scenario is basically what's playing out now.
Current Analyst in Houston, would really caution anyone (even Texas schools) on going to Houston. The sector is likely in a secular decline and the transportation sector is going to continue to shift away from oil, resulting in peak oil demand in the next 10 years. Long term industry sustainability and growth prospects are out the window and the Energy PE funds are either going under or trying to transition to renewables/industrials. As an analyst, it is only 2 years but it’s not like being coverage in NY and you are labeled an O&G person from the start. Recruiting to get bayside outside of O&G will be a huge uphill battle, especially as more people jumping ship.
Oil might be in secular decline but surely gas isn't and the world will always need energy. Probably more in the future than less. The energy sector will obviously have to reinvent itself and shift from its current operations. But, I would see this as an opportunity instead of something negative. You might be at the beginning of an entirely new type of industry and an exciting career if you make the right decisions.