Petroleum Refining & Chemicals
Fueling Growth: Texas' Leadership in Petroleum Refining & Chemicals
Texas has long been a leader in petroleum refining and chemical production, thanks to its abundant natural resources, strategic location, and robust supply chain.
About the Petroleum Refining and Chemicals Sector
The Petroleum Refining and Chemicals sector focuses on converting crude oil into petroleum products, including chemicals, fuel, and plastics. This sector plays a vital role in producing the chemicals, fuels, and plastics essential to industries worldwide. The state has identified three target clusters including: Industrial Chemical Products, Petroleum Refining, and Plastics.
Texas offers a strong competitive advantage due to its abundance of natural resources and raw materials, combined with a supportive regulatory environment. These clusters have rebounded post-pandemic and are positioned for long-term growth as global petroleum demand continues to rise.
Industrial Strengths
Texas boasts world-class petrochemical infrastructure, a well-connected transportation network, and a business-friendly environment. These strengths drive the state’s thriving industrial sectors, fostering innovation and investment in industries like energy, manufacturing, and advanced materials.
Cluster Growth
The Industrial Chemical Products cluster plays a pivotal role in supplying materials used across industries, from agriculture to aerospace. The cluster benefits from Texas’ petrochemical strengths and a robust transportation infrastructure. With ongoing investments in research and innovation, this cluster is set for growth, projected to expand its GDP by 25% from 2022 to 2032.
Workforce Dynamics
Texas’ Petroleum Refining and Chemicals sector is supported by a highly skilled and concentrated workforce. Production occupations account for nearly half of all employment, with top roles including: Production Occupations (49%), Transportation and Material Moving Occupations (9%), and Installation, Maintenance, and Repair Occupations (8%).