Houston is internationally recognized as the global energy capital, with virtually every segment of the energy industry represented in the region. It is also known as the global center for integrated power, a fast-growing new sector of the energy industry. In just over a decade, the number of Houston-based energy trading companies has tripled, with petrochemical capacity in the area nearly four times larger than the nearest competing U.S. site. All major oil and gas companies have extensive operations in the area, including ExxonMobil, Chevron, BP America, Citgo, Conoco, Phillips66, Shell Oil Company, BHP Billiton, El Paso Corp., TOTAL,BG Group, LyondellBasell, Halliburton, Occidental Petroleum, Petrobras, Marathon Oil, Anadarko Petroleum, Transocean, Apache,Hess Corporation, Neweld Exploration, Enterprise Products Partners and Plains All American Pipeline.
According to BP’s 2017 Statistical Review of World Energy, global energy consumption increased 1.0% in 2016, below the 10-year average of 1.8%. North America consumed 21% in 2016 while Europe and Eurasia’s consumption was 21.6% and Asia Pacic consumed 42.0%. Based on the report, oil remains the world’s leading fuel. In 2016, 33.3% of global energy consumption was oil, followed by coal at 28.1% and then by natural gas at 24.1%.
The U.S. Energy Information Administration’s (EIA) Annual Energy Outlook released in January 2017 indicates overall U.S. energy consumption will grow at an average annual rate of 0.2% through 2040. West Texas Intermediate crude oil prices increased from $51.97 per barrel in December 2016 to $57.88 per barrel in December 2017. The average price in 2016 was $43.33 per barrel and the EIA predicts the average price to rise to $48.83 per barrel in 2017 and $49.58 per barrel in 2018.
The Henry Hub natural gas prices are projected to rise from an average of $3.05 per MMBtu in 2017 to $3.29 per MMBtu in 2018.
The U.S. rotary rig count increased annually by 57% to 911 rigs in November 2017, from 580 in September 2016. Year-over-year oil and gas exploration are up in theU.S. by 80% and 109%, respectively.
This Houston Global Energy Capital overview is part of the annual 2018 Houston Economic Outlook. For the full report click here.
Sections covered in the full report include:
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- Employment Sector
- Business Climate
- Global Energy Capital
- Petrochemical & Plastics Industry
- Port Houston
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