Houston is internationally recognized as the global energy capital, with virtually every segment of the energy industry represented in the region.

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Global Energy Capital

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, Newfield Exploration, Enterprise Products Partners and Plains All American Pipeline.

According to BP’s 2018 Statistical Review of World Energy, global primary energy consumption increased 2.2% in 2017, up from 1.2% in 2016 and the highest since 2013. North America consumed 20.5% in 2017 while Europe and Eurasia’s consumption was 21.8% and Asia Pacific consumed 42.5%. Based on the report, oil remains the world’s leading fuel. In 2017, 34.2% of global energy consumption was oil, followed by coal at 27.6% and then by natural gas at 23.4%.

2019_HEO_GlobalEnergyCapital_Graphs

The U.S. Energy Information Administration’s (EIA) Annual Energy Outlook released in January 2018 predicts that the U.S. will become a net energy exporter in 2020 and will remain so through the projection period 2050. Further, increasing energy efficiency across end-use sectors will keep U.S. energy consumption relatively flat even as the U.S. economy expands. Also, natural gas and NGPLs will have the highest production growth of all fossil fuels. NGPLs will account for almost one-third of cumulative U.S. liquids production during the projection period.

West Texas Intermediate crude oil prices increased from $50.80 per barrel in 2017 to $65.23 per barrel in 2018. The EIA projects $62.79 per barrel for 2019.

The Henry Hub natural gas prices are projected to rise from an average of $3.10 per MMBtu in 2017 to $3.27 per MMBtu in 2018. The EIA projects an average of $2.89 pe MMBtu for 2019.

The U.S. rotary rig count increased annually by 16.6% to 1,083 rigs in December 2018, from 929 in December 2017. U.S. upstream oil and gas capital expenditures increased 23% in 2018 and is only expected to increase 2% in 2019.

 


 

2019_Houston_EconomicOutlook_FrontPageThis Global Energy Capital overview is part of the annual 2019 Houston Economic Outlook.

Sections covered in the full report include:

Population Growth | Employment Sector | Business Climate | Global Energy Capital | Petrochemical & Plastics Industry | Port Houston | NASA/Johnson Space Center | Mobility Infrastructure | Airport System | Texas Medical Center | Biosciences & Biotechnology 

 

 



 

Oil Prices2018 Economic Outlook

 

Oil Prices2018 Economic Outlook

 

Oil Prices2018 Economic Outlook

 

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Lisa Bridges

Director of Market Research | Houston

Houston

Lisa joined Colliers in 2010 as Director of Market Research bringing 26 years of commercial real estate experience to the firm. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 29 market reports annually which include quarterly reports on Houston’s retail, office, industrial and healthcare properties.  Further, she prepares statistical ownership reports for various clients as well as an annual Houston Economic Overview. Lisa also creates PowerPoint market presentations, trade journal articles, and other marketing materials in support of the company's business endeavors. She works with senior management in planning the company's marketing strategy and public relations support for local and national conferences, luncheon meetings, recruitment programs, and special events.  Lisa works closely with the company's brokers to develop effective custom market research material specific to both existing and potential clients.

Lisa serves on the Colliers International Editorial Board, the Colliers International U.S. Research Council, is a Colliers Center of Excellence team member and is a recipient of the Colliers International Researcher of the Year Award.

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