Subsea 7 Engineering and Construction Company plans to build a new pipe fabrication ‘spoolbase’ in Port Isabel, Texas. Port Isabel was selected for a deepwater port in southeast Texas, close to the Mexican border to build a pipe assembly plant on a 58-acre site at the Port Isabel–San Benito Navigation District’s turning basin.
Subsea 7 signed a 25-year lease with the Port Isabel Logistical Offshore Terminal, a business aimed at attracting industry suppliers to the area.
The $32 million plant will help attract offshore oil and gas industry suppliers to the area, and it is expected to create about 100 welding and heavy equipment operation jobs.
The spoolbase will deliver the company's North and Central America region requirements for pipe fabrication, supporting Subsea 7's construction vessels. The facility will produce pipe stalks of up to 16 inches (40 cm) in diameter and 1.2 kilometers (0.7 miles) in length for spooling onto reeled pipelay vessels.
The new base will also be able to weld steel material for the onshore fabrication of offshore oil and gas pipelines and complete the manufacture of double joints, plastic lined pipelines, pipe-in-pipe and steel catenary risers.
Bill Boyle, vice president for the Subsea 7's North and Central America region said the spoolbase was a "key milestone" in the company's objective to expand its business in the U.S., Mexican and Gulf of Mexico markets. The company will begin shipping in mid 2009.
These new jobs and the new suppliers the plant will attract should provide a healthy economic boost for the area and increase demand for housing. This new demand should increase the value of property values.
Subsea 7 is one of the world's leading subsea engineering and construction companies. Subsea 7 is the result of mergers between DSND, Halliburton Subsea, Subsea Offshore and Rockwater. The company has five main divisions:
1. Subsea field development
2. ROV support to Drill Rig Operations
3. Inspection, Repair and Maintenance;
4. Survey and Positioning
5. Development and Application of Subsea Technology
Subsea 7 carries out its Subsea field development business in all the major offshore oil & gas markets globally.
• Operations are supported out of the North Sea, Africa, Brazil, Gulf of Mexico and Asia Pacific
• They install infield rigid and flexible pipelines up to 16" diameter, riser systems and umbilicals connecting production facilities on the seabed to fixed or floating platforms. They provide a full range of complementary design, fabrication and installation services for related subsea hardware in order to offer a total subsea field development package. They service deep and emerging deepwater projects with a modern fleet of pipelay, construction, survey and multi-purpose support vessels.
Onshore, our global operations include an extensive infrastructure of pipeline spoolbases and fabrication yards. The newest spoolbase is currently being developed at Port Isabel in the Gulf of Mexico. These strategically-positioned assets, in conjunction with a network of local partners, are central to their objective of developing strong and sustainable regional businesses.
Friday, November 28, 2008
Wednesday, November 19, 2008
Sir John Marks Templeton- Requiescat in pace
Economic systems based on atheism have failed. Religion teaches the infinite worth of each individual.
Religion causes each individual to want to serve others. An increasing part of God's ongoing creative process is to encourage each individual to be purposeful and creative. The free market system removes limitations and thereby encourages amazing and increasingly varied forms of creativity. Religion teaches love and brotherhood and truth and diligence which tend to cause accelerating creativity and productivity.
Fortunes built on force or on inheritance can be harmful; but fortunes built on superior service are beneficial to rich and poor alike.
Sir John Marks Templeton
Requiescat in pace
Religion causes each individual to want to serve others. An increasing part of God's ongoing creative process is to encourage each individual to be purposeful and creative. The free market system removes limitations and thereby encourages amazing and increasingly varied forms of creativity. Religion teaches love and brotherhood and truth and diligence which tend to cause accelerating creativity and productivity.
Fortunes built on force or on inheritance can be harmful; but fortunes built on superior service are beneficial to rich and poor alike.
Sir John Marks Templeton
Requiescat in pace
Thursday, November 13, 2008
Banks say they're using bailout money for loans
By JOHN DUNBAR, Associated Press Writer
WASHINGTON – Some of the nation's largest banks sharing in the $700 billion government bailout of the financial industry tried to assure lawmakers Thursday they are using the money to make more loans and help financially strapped homeowners avoid foreclosure.
Barry L. Zubrow, chief risk officer with JP Morgan Chase, told the Senate Banking Committee that a portion of the $25 billion capital infusion it received from the Treasury Department was being deployed to "expand the flow of credit" and to assist with rewriting residential mortgages for up to 400,000 families.
Zubrow and executives with Goldman Sachs Inc., Bank of America and Wells Fargo & Co. told the committee that that none of the $85 billion they have received collectively from the government is being used to pay salaries or bonuses.
"The committee has asked whether (bailout) funds would be spent on executive compensation," said Jon Campbell, regional banking president for Wells Fargo & Co. in his testimony. "The answer is no. Wells Fargo doesn't need the government investment to pay for bonuses or compensation."
Despite the reassuring words, lawmakers pressed hard for commitments to more lending.
"Let me say as clearly as I can," said committee chairman Sen. Christopher Dodd, D-Conn. "Hoarding capital and acquiring healthy banks are not — I repeat are not — reasons why Congress authorized $700 billion in emergency funding."
Sen. Charles Schumer, D-N.Y., said he and other lawmakers are looking at requiring banks to make more loans as a condition for taking part in the $350 billion second half of the bailout. "Any new capital injections must come with tougher requirements," he said.
Treasury has already loaned out or committed $290 billion of the first half. Democrats are working on a bill they hope to pass next week that would devote another $25 billion to the beleaguered auto industry, with the specific intent of helping General Motors Corp. avoid bankruptcy.
Sen. Tim Johnson, D-S.D., said he was alarmed by reports of continued generous compensation packages and benefits for executives of companies getting bailout funds, as well as dividend bailouts to stockholders equal to more than half the bailout money they are getting.
"The intent of the bailout was to stabilize troubled financial institutions and help those businesses and individuals and Main Street affected by the credit freeze," said Johnson. "Those making the decisions on how to spend the $700 billion, and those receiving the funds, must remember this intended use.
Congress can block release of the second $350 billion. It can also rewrite the law to put new conditions on its use.
WASHINGTON – Some of the nation's largest banks sharing in the $700 billion government bailout of the financial industry tried to assure lawmakers Thursday they are using the money to make more loans and help financially strapped homeowners avoid foreclosure.
Barry L. Zubrow, chief risk officer with JP Morgan Chase, told the Senate Banking Committee that a portion of the $25 billion capital infusion it received from the Treasury Department was being deployed to "expand the flow of credit" and to assist with rewriting residential mortgages for up to 400,000 families.
Zubrow and executives with Goldman Sachs Inc., Bank of America and Wells Fargo & Co. told the committee that that none of the $85 billion they have received collectively from the government is being used to pay salaries or bonuses.
"The committee has asked whether (bailout) funds would be spent on executive compensation," said Jon Campbell, regional banking president for Wells Fargo & Co. in his testimony. "The answer is no. Wells Fargo doesn't need the government investment to pay for bonuses or compensation."
Despite the reassuring words, lawmakers pressed hard for commitments to more lending.
"Let me say as clearly as I can," said committee chairman Sen. Christopher Dodd, D-Conn. "Hoarding capital and acquiring healthy banks are not — I repeat are not — reasons why Congress authorized $700 billion in emergency funding."
Sen. Charles Schumer, D-N.Y., said he and other lawmakers are looking at requiring banks to make more loans as a condition for taking part in the $350 billion second half of the bailout. "Any new capital injections must come with tougher requirements," he said.
Treasury has already loaned out or committed $290 billion of the first half. Democrats are working on a bill they hope to pass next week that would devote another $25 billion to the beleaguered auto industry, with the specific intent of helping General Motors Corp. avoid bankruptcy.
Sen. Tim Johnson, D-S.D., said he was alarmed by reports of continued generous compensation packages and benefits for executives of companies getting bailout funds, as well as dividend bailouts to stockholders equal to more than half the bailout money they are getting.
"The intent of the bailout was to stabilize troubled financial institutions and help those businesses and individuals and Main Street affected by the credit freeze," said Johnson. "Those making the decisions on how to spend the $700 billion, and those receiving the funds, must remember this intended use.
Congress can block release of the second $350 billion. It can also rewrite the law to put new conditions on its use.
Tuesday, November 4, 2008
DOWN BUT NOT OUT IN TEXAS
TEXAS (San Antonio Business Journal) – Annualized sales for commercial properties in Texas at the end of August 2008 showed a considerable drop from actual sales reported during the same period last year, according to a recent report by the Federal Reserve Bank of Dallas.
The report showed $14 billion in annualized sales as of the end of August 2008, compared with $31.6 billion in actual sales a year earlier.
The investment falloff in Texas has been felt in all types of commercial real estate, and the authors of the report said national economic woes will continue to weigh on investment activity.
However, they predict that the factors that brought investment money to the Lone Star State in the first place will bring investors back once the economy rebounds.
The report showed $14 billion in annualized sales as of the end of August 2008, compared with $31.6 billion in actual sales a year earlier.
The investment falloff in Texas has been felt in all types of commercial real estate, and the authors of the report said national economic woes will continue to weigh on investment activity.
However, they predict that the factors that brought investment money to the Lone Star State in the first place will bring investors back once the economy rebounds.
The National Association of Realtors® Challenges Lawmakers
WASHINGTON, October 31, 2008
The National Association of Realtors® has stepped up its challenge to lawmakers encouraging them to take new, decisive actions to address the continuing problems in the housing industry, as well as the ongoing economic crisis.
“Our members see firsthand the impact that an unstable housing market is having on communities all across this great country,” said Richard F. Gaylord, NAR president. “The U.S. Treasury and Congress need to work together to ensure that the American people – not Wall Street and large banks – benefit from the economic recovery plan.”
NAR sent a letter last week to U.S. Treasury Secretary Henry Paulson calling on him to refocus the Federal Housing Finance Agency’s efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for those who need to refinance.
NAR today provided an economic analysis demonstrating that a reduction, or a buydown, of interest rates by just 1 percentage point could result in up to 840,000 additional home sales and reduce the inventory of homes by as much as 20 percent. Inventories currently at 9.9 months’ supply would decrease to approximately a 7.5 month supply.
“These changes would help stabilize home values and the housing industry,” Gaylord said. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan – stabilizing the mortgage and housing markets – to help families avoid foreclosure. Home price stabilization would bring clarity to the valuations of mortgage-backed securities, removing uncertainty in the financial markets and positively affecting the overall U.S. economy.”
Realogy President and CEO Richard A. Smith said that substantially lower mortgage rates would stimulate both existing- and new-home sales. “When home sales increase, housing-related consumer purchasing follows, and we would expect this to help lead our economy to a recovery,” he said. Both NAR and Realogy have called on the federal government to take corrective actions that will result in lower mortgage rates.
Federal Deposit Insurance Corp. Chairman Sheila Bair has presented some ideas aimed at helping millions of homeowners by guaranteeing their mortgages. “NAR would support this effort,” said Gaylord. “The government must focus on protecting homeowners and making the dream of homeownership once again attainable. This would help stabilize the housing market and strengthen the national economy.”
Toward this end, NAR submitted a stimulus plan to Congress and the administration earlier this month, calling on Congress to enact a new housing stimulus package that would help boost the economy. The plan includes consumer-driven provisions that would eliminate repayment of the first-time home buyer tax credit and expand the credit to all home buyers, make the increased mortgage loan limits permanent, and focus the economic stabilization efforts on supporting the housing and mortgage markets instead of providing capital to banks with no strings attached.
Reducing the interest rate, combined with removing the home buyer tax credit repayment, would result in an additional 10 percent reduction in inventory, down to a 6.5-month supply, and would produce modest home price gains of 2 to 4 percent. Such price gains would provide up to $760 billion in housing equity recovery for the nation’s 75 million homeowners.
“There is no question – there cannot be an economic recovery without a stabilized housing market. Congress and the new administration need to act immediately to help America’s families protect their homes, savings and futures,” Gaylord said.
The National Association of Realtors® has stepped up its challenge to lawmakers encouraging them to take new, decisive actions to address the continuing problems in the housing industry, as well as the ongoing economic crisis.
“Our members see firsthand the impact that an unstable housing market is having on communities all across this great country,” said Richard F. Gaylord, NAR president. “The U.S. Treasury and Congress need to work together to ensure that the American people – not Wall Street and large banks – benefit from the economic recovery plan.”
NAR sent a letter last week to U.S. Treasury Secretary Henry Paulson calling on him to refocus the Federal Housing Finance Agency’s efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for those who need to refinance.
NAR today provided an economic analysis demonstrating that a reduction, or a buydown, of interest rates by just 1 percentage point could result in up to 840,000 additional home sales and reduce the inventory of homes by as much as 20 percent. Inventories currently at 9.9 months’ supply would decrease to approximately a 7.5 month supply.
“These changes would help stabilize home values and the housing industry,” Gaylord said. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan – stabilizing the mortgage and housing markets – to help families avoid foreclosure. Home price stabilization would bring clarity to the valuations of mortgage-backed securities, removing uncertainty in the financial markets and positively affecting the overall U.S. economy.”
Realogy President and CEO Richard A. Smith said that substantially lower mortgage rates would stimulate both existing- and new-home sales. “When home sales increase, housing-related consumer purchasing follows, and we would expect this to help lead our economy to a recovery,” he said. Both NAR and Realogy have called on the federal government to take corrective actions that will result in lower mortgage rates.
Federal Deposit Insurance Corp. Chairman Sheila Bair has presented some ideas aimed at helping millions of homeowners by guaranteeing their mortgages. “NAR would support this effort,” said Gaylord. “The government must focus on protecting homeowners and making the dream of homeownership once again attainable. This would help stabilize the housing market and strengthen the national economy.”
Toward this end, NAR submitted a stimulus plan to Congress and the administration earlier this month, calling on Congress to enact a new housing stimulus package that would help boost the economy. The plan includes consumer-driven provisions that would eliminate repayment of the first-time home buyer tax credit and expand the credit to all home buyers, make the increased mortgage loan limits permanent, and focus the economic stabilization efforts on supporting the housing and mortgage markets instead of providing capital to banks with no strings attached.
Reducing the interest rate, combined with removing the home buyer tax credit repayment, would result in an additional 10 percent reduction in inventory, down to a 6.5-month supply, and would produce modest home price gains of 2 to 4 percent. Such price gains would provide up to $760 billion in housing equity recovery for the nation’s 75 million homeowners.
“There is no question – there cannot be an economic recovery without a stabilized housing market. Congress and the new administration need to act immediately to help America’s families protect their homes, savings and futures,” Gaylord said.
Texas’ real estate markets healthier than most
Texas home prices holding steady
The good news for Texas homesellers is that prices are holding. That’s in stark contrast to what’s happening in other parts of the country. Texas’ real estate markets never caught the housing bust bug that spread like the flu across most of the United States. “Getting back to normal” is how many real estate people describe today’s Texas market. The Real Estate Center agrees with that diagnosis.
Compared to other markets across the country, Texas is still sitting pretty in many ways. By comparison, there are entire condo buildings in Miami that are empty – with not a single unit sold – and single-family homes in various phases of construction across Florida and Arizona, all shells waiting to be completed.
We’re not seeing that in Texas, nor do forecasters expect to see that degree of downturn. That’s because, according to Jim Gaines, Ph.D., research economist for the Real Estate Center at Texas A&M, we’ve got a lot of positive economic factors going for us, including affordability, reasonable cost of living, low overall cost of doing business, ample employment opportunities, and – the reason why a lot of us are Texans – a great lifestyle. Jim Gaines, Ph.D., keeps his finger on the pulse of the state’s major housing markets. If one market misses a beat, he knows it.
“Events and circumstances point toward a Texas-sized boom between now and 2030,” says Gaines. “The state’s population and economy – as well as its housing and commercial real estate markets – are poised to explode in volume and prices. Job growth is expected to be stimulated by overall U.S. economic growth and enhanced by Texas’ employment-friendly characteristics.”
Austin’s Dugg Tankersley echoes the positive outlook of many experts, putting the current Texas real estate market in perspective. “We’ve been doing 90 miles per hour for so long,” he says. “Now we’re at 65 miles per hour, but that’s still pretty fast.”
-David S. Jones
David S. Jones is communications director and senior editor with the Real Estate Center at Texas A&M University
The good news for Texas homesellers is that prices are holding. That’s in stark contrast to what’s happening in other parts of the country. Texas’ real estate markets never caught the housing bust bug that spread like the flu across most of the United States. “Getting back to normal” is how many real estate people describe today’s Texas market. The Real Estate Center agrees with that diagnosis.
Compared to other markets across the country, Texas is still sitting pretty in many ways. By comparison, there are entire condo buildings in Miami that are empty – with not a single unit sold – and single-family homes in various phases of construction across Florida and Arizona, all shells waiting to be completed.
We’re not seeing that in Texas, nor do forecasters expect to see that degree of downturn. That’s because, according to Jim Gaines, Ph.D., research economist for the Real Estate Center at Texas A&M, we’ve got a lot of positive economic factors going for us, including affordability, reasonable cost of living, low overall cost of doing business, ample employment opportunities, and – the reason why a lot of us are Texans – a great lifestyle. Jim Gaines, Ph.D., keeps his finger on the pulse of the state’s major housing markets. If one market misses a beat, he knows it.
“Events and circumstances point toward a Texas-sized boom between now and 2030,” says Gaines. “The state’s population and economy – as well as its housing and commercial real estate markets – are poised to explode in volume and prices. Job growth is expected to be stimulated by overall U.S. economic growth and enhanced by Texas’ employment-friendly characteristics.”
Austin’s Dugg Tankersley echoes the positive outlook of many experts, putting the current Texas real estate market in perspective. “We’ve been doing 90 miles per hour for so long,” he says. “Now we’re at 65 miles per hour, but that’s still pretty fast.”
-David S. Jones
David S. Jones is communications director and senior editor with the Real Estate Center at Texas A&M University
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