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Houston's energy industry is a world powerhouse
(particularly
oil),
but
biomedical research, aeronautics, and the ship channel are also large
parts of the city's
industrial base. The Houston metropolitan area comprises the largest
petrochemical manufacturing area in the world, including for
synthetic rubber,
insecticides, and
fertilizers. The area is also the world's leading center for building
oilfield
equipment. Much of Houston's success as a
petrochemical complex is due to its busy man-made ship channel, the
Port of Houston.
The port ranks first in the country in international commerce and is the
sixth-largest port in the world. Amid other U.S. ports, it is the busiest
in foreign tonnage and second in overall tonnage. Because of these
economic trades, many residents have moved to Houston from other U.S.
states, as well as hundreds of countries worldwide. Unlike most places,
where high gas
prices are seen as harmful to the economy, they are generally seen as
beneficial for Houston as many are employed in the energy industry. Historically, Houston has had several growth spurts (and some devastating economic recessions) related to the oil industry. The discovery of oil near Houston in 1901 led to its first growth spurt — by the 1920s, Houston had grown to almost 140,000 people. The city's burgeoning aerospace industry heralded its second growth spurt, which solidified with the 1973 oil crisis. Demand on Texas oil increased, and many people from the northeast moved to Houston to profit from the trade. When the embargo was lifted, the growth mostly stopped. However, Pasadena still has its refineries, and the Port of Houston is among the busiest in the world. Houston is second to New York City in Fortune 500 headquarters. The city has attempted to build a banking industry, but the companies originally started in Houston have since merged with other companies nationwide. Banking, however, is still vital to the region. The Houston–Sugar Land–Baytown MSA's Gross Area Product (GAP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars—slightly larger than Austria's Gross Domestic Product (GDP). Only 28 nations other than the United States have a GDP exceeding Houston's GAP. Mining, which in Houston is almost entirely oil and gas exploration and production, accounts for 11 percent of Houston's GAP—down from 21 percent as recently as 1985. The reduced role of oil and gas in Houston's GAP reflects the rapid growth of other sectors—such as engineering services, health services, and manufacturing. Forty foreign governments maintain trade and commercial offices here and the city has 23 active foreign chambers of commerce and trade associations. Twenty foreign banks representing 10 nations operate in Houston and provide financial assistance to the international community. Among the 10 most populous metro areas, Houston ranked second in employment growth rate and fourth in nominal employment growth. In 2006, the Houston metropolitan area ranked first in Texas and third in the U.S. within the category of "Best Places for Business and Careers" by Forbes.
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