While Houston may not be the city that never sleeps, its lights are perpetually powered by a relentless energy machine that processes 1.2 million barrels of crude daily and stands as the unrivaled heartbeat of America's oil and gas industry.
Key Takeaways
- In 2022, Houston-area refineries processed approximately 1.2 million barrels per day of crude oil, accounting for about 25% of U.S. refining capacity
- Texas, with Houston as its hub, produced 5.3 billion barrels of crude oil in 2023, representing 42% of total U.S. production
- The Houston Ship Channel handled over 280 million tons of petroleum products in 2022, making it the busiest petrochemical waterway globally
- Houston's oil and gas workforce totaled 285,000 direct jobs in 2023
- The sector supported 1.2 million indirect and induced jobs in the Houston metro area as of 2022
- Average annual wage in Houston's oil and gas extraction industry was $145,000 in 2022
- The oil and gas industry contributed $125 billion to Houston's GDP in 2022
- Energy exports from Houston ports reached $100 billion in value in 2023
- Houston's petrochemical exports totaled $45 billion in 2022
- Houston hosts 4,700 miles of pipelines carrying 20 million barrels per day
- The Houston Ship Channel has 150+ petrochemical facilities along 52 miles
- There are 29 refineries in the Houston area with 2.3 million bpd capacity in 2023
- Chevron Phillips Chemical's Houston plants produce 4 million tons of ethylene yearly
- Shell's Houston HQ oversees $30 billion annual revenue from Gulf operations
- Occidental Petroleum, Houston-based, produced 1.2 million boe/d in 2023
Houston's oil and gas industry is a massive economic engine for the entire United States.
Companies and Market
- Chevron Phillips Chemical's Houston plants produce 4 million tons of ethylene yearly
- Shell's Houston HQ oversees $30 billion annual revenue from Gulf operations
- Occidental Petroleum, Houston-based, produced 1.2 million boe/d in 2023
- ConocoPhillips' Houston campus manages 1.8 million boe/d globally
- BP Americas HQ in Houston generates $25 billion U.S. revenue yearly
- Halliburton's Houston facilities service 40% of global drilling rigs
- Schlumberger (SLB) Houston R&D center develops tech for 50% market share in wireline
- Baker Hughes, Houston HQ, supplies equipment to 70 countries from local plants
- Cheniere Energy's Corpus Christi LNG near Houston shipped 10 MTPA in 2023
- Marathon Petroleum's Galveston Bay refinery processes 631,000 bpd
- Phillips 66's Sweeny refinery near Houston outputs 270,000 bpd
- Valero's Houston refinery runs at 360,000 bpd capacity utilization 95%
- Dow Chemical's Freeport complex produces 6 million tons polymers yearly
- Weatherford International's Houston HQ services $4 billion revenue ops
- NOV's Houston manufacturing plants supply 30% global drilling equipment
- EOG Resources drilled 400 Houston-managed wells in Permian 2023
- Apache Corp (APA) Houston ops produce 400,000 boe/d Alpine High
- Houston's energy IPOs raised $3 billion in 2023
- 1,000 startups in Houston's energy corridor as of 2023
- LyondellBasell Houston plants have 20 million tons capacity
- Core Laboratories Houston labs test 1 million samples yearly
- Forum Energy Technologies Houston fabs for subsea gear, $1B revenue
- Matador Resources Houston ops drill 200 Eagle Ford wells 2023
- Golar LNG Houston engineering for FLNG conversions
- Houston energy M&A deals totaled $50 billion in 2023
- 150 publicly traded energy firms listed with Houston ties 2023
Companies and Market Interpretation
The sheer concentration of capital, chemical output, and hydrocarbon extraction in the Houston area is such that if it were a nation, it would be a petrostate with an unnervingly good stock exchange and a coffee shop on every drilling pad.
Economic Impact
- The oil and gas industry contributed $125 billion to Houston's GDP in 2022
- Energy exports from Houston ports reached $100 billion in value in 2023
- Houston's petrochemical exports totaled $45 billion in 2022
- The sector generated $20 billion in state and local taxes for Texas in 2023, with Houston as epicenter
- Houston's energy firms invested $50 billion in capital expenditures in 2023
- LNG exports added $15 billion to Houston's economy in 2023
- The industry supports 40% of Houston's property tax base, equating to $8 billion annually
- Houston's refining sector contributed $30 billion to regional GDP in 2022
- Energy R&D spending in Houston reached $5 billion in 2023
- Venture capital in Houston clean energy startups hit $2 billion in 2023
- Houston's energy GDP share is 25%, or $150 billion in 2023 estimates
- Port of Houston energy cargo value was $120 billion in FY2023
- Refining taxes paid by Houston firms: $10 billion to local governments 2022
- Houston LNG projects to add $25 billion economic impact by 2028
- Energy firms sponsored $1 billion in Houston philanthropy in 2023
- Houston's rig services market valued at $15 billion in 2023
- Petrochemical trade surplus for Houston region: $30 billion in 2022
- Capital raised by Houston E&P firms: $18 billion via equity/debt 2023
- Houston storage facilities hold 15% of U.S. strategic petroleum reserve equivalent
- Energy retail sales in Houston: $12 billion from sector spending 2022
- Houston energy patents filed: 1,200 in 2023
- Tourism boost from energy events: $500 million annually
- Houston's energy supply chain spends $40 billion locally yearly
- Federal energy grants to Houston: $1.5 billion in 2023
- Bank lending to Houston oil firms: $200 billion outstanding 2023
- Insurance premiums for Houston energy assets: $3 billion/year
- Houston energy construction projects value: $20 billion active 2023
- Export financing via EXIM for Houston LNG: $10 billion 2023
Economic Impact Interpretation
Despite its futuristic skyline, Houston's economy still happily floats on a very deep, very lucrative, and increasingly innovative sea of oil and gas.
Employment and Labor
- Houston's oil and gas workforce totaled 285,000 direct jobs in 2023
- The sector supported 1.2 million indirect and induced jobs in the Houston metro area as of 2022
- Average annual wage in Houston's oil and gas extraction industry was $145,000 in 2022
- Over 2,500 oil and gas companies are headquartered in Houston, employing 500,000 regionally in 2023
- Houston's energy sector saw 15,000 new jobs added in 2023 despite market volatility
- 45% of Houston's oil and gas workers hold engineering degrees, per 2022 surveys
- The industry trained 10,000 apprentices in Houston in 2023 through programs like Energy Workforce & Technology Council
- Women comprise 22% of Houston's oil and gas professional workforce in 2023, up from 18% in 2019
- Houston's rig count averaged 320 active rigs in 2023, supporting 50,000 field jobs
- 65,000 veterans are employed in Houston's energy sector as of 2022
- Houston energy firms employed 120,000 engineers and geoscientists in 2023
- Labor turnover in Houston oilfield services was 25% in 2022
- 30,000 STEM graduates enter Houston energy workforce annually
- Hispanic workers make up 40% of Houston's oil and gas labor force in 2023
- Houston's energy training centers graduated 8,000 welders in 2023
- Remote work adoption in Houston upstream offices reached 35% post-2022
- Oil and gas supported 600,000 jobs in Greater Houston MSA in 2023
- Average rig worker salary in Houston was $85,000 in 2023
- Energy sector venture jobs created 5,000 positions in Houston startups 2023
- Houston's energy sector unemployment rate was 3.2% in 2023
- 25% growth in Houston data scientists for energy analytics 2022-2023
- Offshore Gulf jobs from Houston firms: 20,000 workers
- Energy Workforce Ombudsman reported 50,000 skilled labor shortage in Houston 2023
- UH Energy's workforce program placed 4,000 interns in 2023
- Union membership in Houston oil construction: 15% of 100,000 workers
- Cyber skills training for 2,000 Houston energy pros in 2023
- Midstream jobs: 80,000 in Houston pipeline ops 2023
- Executive roles: 5,000 C-suite positions in Houston energy 2023
Employment and Labor Interpretation
Houston's energy sector is a massive, high-wage economic engine, expertly navigating market volatility to not only sustain its core of engineers and geoscientists but also aggressively diversify its talent pool with data scientists, veterans, and skilled trades, all while frankly wrestling with a significant skilled labor shortage and the logistical puzzles of a modern workforce.
Infrastructure
- Houston hosts 4,700 miles of pipelines carrying 20 million barrels per day
- The Houston Ship Channel has 150+ petrochemical facilities along 52 miles
- There are 29 refineries in the Houston area with 2.3 million bpd capacity in 2023
- Houston's LNG infrastructure includes 5 major terminals with 70 MTPA capacity
- 1,200 miles of intracoastal waterway support Houston's oil transport
- Houston has 40 gas processing plants handling 14 Bcf/d
- The city features 10 major export terminals shipping 2 million bpd of products
- Over 500 storage tanks with 100 million barrel capacity dot Houston refineries
- ExxonMobil's Baytown complex, world's largest refinery, processes 630,000 bpd
- Houston Ship Channel dredging deepened to 52 feet, handling Panamax vessels
- 15 FPSO units operated from Houston for Gulf of Mexico in 2023
- Houston has 200+ compressor stations for 5 Bcf/d gas transport
- Enterprise Products Partners' Houston NGL fractionator processes 1 million bpd
- 50 marine terminals along Houston waterfront for oil products
- Houston's rail network moves 100,000 carloads of energy commodities yearly
- Kinder Morgan's Houston terminals store 60 million barrels
- Magellan Midstream's East Houston refinery pipeline system spans 450 miles
- Total's Port Arthur refinery expansion added 250,000 bpd capacity in 2023
- Houston hosts 40% of U.S. oil service centers for rig maintenance
- Houston's offshore platforms: 1,800 structures serviced locally
- 300 miles of subsea pipelines from Houston Gulf fields
- Houston's truck fleet for oil transport: 15,000 rigs daily
- Barbours Cut Terminal handles 1 million TEUs energy cargo yearly
- Houston data centers for energy trading: 10 facilities, 500 MW power
- Plains All American's Houston hub pipes 4 million bpd
- Flint Hills Resources Corpus Christi refinery linked to Houston grid, 300k bpd
- Houston's hydrogen pipeline network spans 50 miles for refineries
- 20 floating storage units moored in Houston waters 2023
Infrastructure Interpretation
Houston is essentially the world's industrial heart, a brawny, interconnected beast of pipes, ships, and steel that gulps, processes, and spits out the energy that modern life demands, all on a scale that would make even the mightiest ancient empire blush.
Production and Output
- In 2022, Houston-area refineries processed approximately 1.2 million barrels per day of crude oil, accounting for about 25% of U.S. refining capacity
- Texas, with Houston as its hub, produced 5.3 billion barrels of crude oil in 2023, representing 42% of total U.S. production
- The Houston Ship Channel handled over 280 million tons of petroleum products in 2022, making it the busiest petrochemical waterway globally
- In 2023, Houston's upstream oil and gas sector extracted 1.8 trillion cubic feet of natural gas
- Permian Basin output routed through Houston facilities reached 6.2 million barrels per day in Q4 2023
- Houston's LNG export terminals, including Freeport LNG, exported 12.5 million tonnes in 2023
- In 2022, Houston refineries produced 180 million barrels of gasoline annually
- The Eagle Ford Shale, managed from Houston, yielded 300,000 barrels per day of oil in 2023
- Houston's petrochemical plants produced 15 million metric tons of ethylene in 2022
- In 2023, Houston-area gas processing plants processed 12 billion cubic feet per day
- Houston refineries operated at 92% utilization rate in 2023
- Houston's NGL production hit 450,000 bpd in 2023
- The Haynesville Shale gas play, coordinated from Houston, produced 14 Bcf/d in 2023
- Houston petrochemical output grew 5% to 55 million tons in 2023
- Freeport LNG Phase 3 added 5 MTPA capacity online in 2023
- Houston's diesel production from refineries was 120 million barrels in 2022
- Upstream investment in Houston firms totaled $40 billion in 2023
- Houston's oil and gas sector emitted 150 million metric tons CO2 in 2022
- Texas Railroad Commission approved 25,000 Houston-area permits in 2023
- Houston's crude oil imports averaged 1.5 million bpd in 2023
- Local distillate fuel production reached 140 million barrels in 2022
- Houston gas wells produced 2.1 Tcf in 2023
- Ethane cracking capacity in Houston stands at 8 million tons/year
- Golden Pass LNG under construction will add 18 MTPA by 2025
- Jet fuel output from Houston refineries: 50 million barrels annually
- Houston firms hold 10 billion barrels of proved reserves
- Drilling permits issued: 12,000 in Houston district 2023
- Houston's frac sand supply market: 50 million tons/year demand
- Residual fuel oil production: 30 million barrels from Houston 2022
Production and Output Interpretation
Despite its notorious carbon footprint, Houston remains the indispensable, if slightly sweaty, engine of American energy, refining a quarter of the nation's crude, managing the planet's busiest petrochemical waterway, and powering everything from cars to global LNG markets with staggering, billion-barrel bravado.
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