WorldCity, Houston exports see notable increase in third quarter | Connecting Local Business Leaders To The Global Economy

Houston exports see notable increase in third quarter

December 11th, 2006

Houston exports of oilfield equipment to Algeria, Nigeria and Venezuela jumped 80 percent in the first three quarters of 2006, pushing overall exports from the Customs district up 20 percent.

Dramatic growth in exports of oilfield equipment shipments to Algeria, Nigeria and Venezuela helped Houston boost its exports through September 2006, although the district imports nearly twice a much as it exports.

Overall trade for the district in the first nine months in 2006 hit $121.4 billion, well above the $99.4 billion posted during the same period of 2005.

The energy sector dominates Houston’s trade and countries in the midst of upgrading their oil and natural gas infrastructures contributed disproportionately to the third quarter trade results.

Two-way trade between Houston and Algeria, for example, grew nearly 70 percent in the first nine months of the year to $4.7 billion. That’s more than the $3.8 billion tally for full-year 2005.

Algeria is working to entice foreign investment in its natural gas sector. In the city of Hassi Berkine, General Electric is involved in construction of the country’s first privately financed gas-powered plant.

At the same time, Algeria’s government-owned oil company Sonatrach is using a $1 billion line of credit with the Export-Import Bank of the United States to buy equipment and services.

Houston’s trade with Nigeria in the first nine months of 2006 rose 51 percent while exports to Venezuelan jumped 46 percent.

Venezuela is Houston’s most important trade partner after Mexico. The South American country’s trade with Houston neared the $12 billion mark through September.

Nigeria, the No. 3 trader with the district, saw its exchange with Houston jump 27 percent in the first three quarters of the year, sparked by a 25 percent rise in crude oil imports from the African country.

Aside from shipping oilfield machinery and structures to these emerging nations, Houston is also becoming a major provider of cellular phones and computers.

In the first nine months of 2006, Mexico easily held onto its position as Houston’s top trader. The exchange between the district and Mexico hit $13.7 billion, an increase of 24 percent compared to the same period in 2005.