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	REMARKS TO THE SHELBY COUNTY CHAMBER OF COMMERCE CENTER TX MAY 3, 1989

(10 to 15 minutes)

Thank you, Larry (Gooch).

I want to talk to you today about the future of the Texas economy, especially in relation to the oil and gas industry.

I want to leave plenty of time for questions, so I’ll keep my remarks short (Dad’s remark... best speech ever).

Texas economy improving: Tom Brown story; “Damn tired of it.” Good reasons for the brighter outlook... but my optimism is for a diversified Texas economy, not another oil boom.

The price of oil has improved, but I personally am looking more toward natural gas for the future.

Natural gas is plentiful, clean... a good replacement for imported oil.

Once the gas deliverability bubble disappears, the industry will start growing again... Good news for Texas.

But the natural gas business won’t be enough to revive the entire state... Fortunately, it won’t have to.

The oil price collapse was rough on us all, but it has worked to strengthen the Texas economy.

A couple things happened when times got tough... Businesses restructured, became lean, efficient and competitive to stay alive.

And as oil profits plummeted, our economy began diversifying.

Entrepreneurs opened their own businesses and succeeded in expanding the state’s economic base.

Texas’ biggest asset is its entrepreneurs.

Hard to quantify, but we have more in Texas than anyplace in the world... the spirit that made Texas great.

In addition to restructuring and promoting entrepreneurship, Texas must work to continue to provide a good business climate... taxes low, regulations in check.

So what it comes down to is a three-pronged offensive for economic growth.

First, we need to continue restructuring existing businesses to become as competitive and efficient as possible.

Second, we need to encourage entrepreneurship [Handwritten addition: Story on how much is enough... “Pig trough”] Never discourage an entrepreneur.

Third, we must continue attracting out-of-state businesses and helping our existing businesses... The key is to keep the Texas business climate attractive.

But there’s no need for giveaways... With our low property costs, no state income tax and a highly skilled workforce, we don’t need to subsidize business with taxpayers’ money.

If Texas has the leadership to pursue these three avenues, we will be the model for the entire country.

But it takes leadership... it takes effort... it takes involvement... and it takes a dedicated commitment to a unified set of goals.

Texans have demonstrated these attributes in the past, and I know they can be counted on in the future... to build a stronger Texas.

Thank you.

QUESTIONS AND ANSWERS