Houston Business and Economy
Although Houston remains the energy capital of the world, the industry has streamlined and redefined itself. The city’s history has been intertwined with that of the energy industry since the discovery of oil at Spindletop in East Texas in 1901. Within 10 years, that discovery led to the founding of The Texas Company (now Chevron) and Humble Oil and Refining Company (now ExxonMobil), both with operations based in Houston.
During this same period, in his shop near downtown Houston, Howard Hughes, Sr. was inventing the rotary drill bit that was to revolutionize oil and gas drilling. Then, in 1927, another pivotal development in energy industry history occurred in Houston. Schlumberger began its pioneer wire line well testing, becoming one of many international energy firms to operate from this city.
Today, Houston’s economy is still based on energy, but to a lesser extent than in the boom days. The city is an industrial, commercial, educational and financial center. Its diverse economy comprises space and science research firms, universities, leading medical facilities, technology companies, telecommunications, shipyards, grain elevators and a wide range of other businesses. The emphasis on international trade is expanding every year, and will be a prominent theme in the city’s continued economic development.
The Greater Houston Partnership (www.houston.org) is the primary advocate of Houston’s business community and is dedicated to building prosperity in the region.
- Houston, with 2.14 million residents in mid-2006, is the fourth most populous city in the United States, trailing only New York, Los Angeles and Chicago. The 10-county Metropolitan Statistical Area (MSA) has a population of 5.54 million, ranking sixth nationally.
- The Greater Houston Partnership forecasts that job growth in the 10-county MSA is on track to increase 2.6 percent in 2007, which shows employment in Houston growing at twice the national rate.
- Between 2000 and 2030, according to Woods & Poole Economics, the 10-county Houston MSA will rank sixth among the nation’s metropolitan areas in job growth, adding 2.66 million jobs.
- Thirteen of the 2006 Fortune 100 Fastest Growing Companies are headquartered in the
Houston metropolitan area. With more than one in eight of the firms on this list, Houston easily surpasses all other metro areas. Los Angeles and New York tied for second, with eight apiece. The rankings are based on three-year average annual earnings per share, revenue growth and total return.
- The Houston MSA’s Gross Area Product (GAP) in July 2007 was $336.8 billion,
according to The Perryman Group — slightly larger than Austria’s, Poland’s or Saudi
Arabia’s Gross Domestic Product (GDP).
- Only 21 nations other than the U.S. have a GDP exceeding Houston's.
Source: The Greater Houston Partnership
Additional Houston Business Statistics
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