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Texas is the energy capital of the world. Once an independent republic and frontier
region, Texas is now America’s second most populous state and consistently ranked
as one of the best for business. Major sectors of the diversified economy include
petroleum production & refining, technology, health care, agriculture, education, and
finance & banking.
Hottest Sectors
Energyhasbeenthemostvibranteconomicsector inTexassincethefirstmajoroil boom
at Spindletop Hill in 1901. Horizontal drilling and hydraulic fracturing technologies,
which were pioneered by Texas companies, have allowed development of previously
inaccessible oil and natural gas reserves. Two of the most important areas of oil and
gas development in the United States—the Permian Basin and the Eagle Ford Shale—
are located in Texas. Dozens of international companies have selected Texas for joint-
venture exploration and production projects, and dozens more have selected Texas as
an operational gateway to America’s vast energy resources.
Beyond its traditional strength in oil and gas, Texas is home to a thriving renewable
energy industry. Texas produces more electricity from wind than any other state and
has also witnessed recent growth in solar energy development. In addition to power
generation facilities, the state is home tomany manufacturers of wind and solar energy
equipment. International companies are active participants in this market.
The technology industry is also an important driver of the Texas economy. The
state is second only to California in technology jobs, and the state capital, Austin,
is second only to Silicon Valley as America’s largest technology hub. There are more
than 5,000 technology companies in Austin employing more than 120,000 people.
Approximately 200 of these companies are in the life sciences field. Austin is also
home to the University of Texas, an enormous research institution with over 50,000
students and 3,000 faculty members. The technology industry is expected to grow
as the state’s education system continues to provide highly skilled scientists and
engineers, and as companies and individuals seek to locate in areas with attractive
regulatory environments and low living costs.
Beyond its traditional strength in oil and gas, Texas is home to a thriving
renewable energy industry. Texas produces more electricity from wind than any
other state and has also witnessed recent growth in solar energy development.
Doing
Business in
Texas