Rigzone Ranks the Top 10 Oil & Gas Cities in the World

Rigzone Ranks the Top 10 Oil & Gas Cities in the World

Rio de Janeiro, Brazil's second urban and economic center after Sao Paulo, is the continent's center for oil and gas exploration, driving business opportunities. Last year, the city received $7.3 billion in foreign direct investment, estimated to be seven times more than the year before, and more than twice as much as Sao Paulo, the state's capital.

Increasing domestic oil production, which is predominantly produced offshore Rio de Janeiro, has been a long-term goal of the Brazilian government. Brazil holds roughly 14 billion barrels of proven oil reserves and holds the second-largest net amount in South America after Venezuela, according to the U.S. Energy Information Administration (EIA). The offshore Campos and Santos Basins hold the vast majority of the country's proven reserves with oil production to reach 3 million barrels of oil per day in 2013, according to EIA.

Petroleo Brasileiro S.A. or Petrobras, Brazil's leading integrated oil and gas company, is headquartered in Rio de Janeiro.  Considered the world's largest deep water operator, Petrobras reported that its crude reserves reached 12.88 billion barrels of oil and natural gas equivalent in 2012 and is a major distributor of oil products.

Energy Impact

Due to its resource-rich economy and booming oil and gas sectors, many businesses have opened offices in Rio causing prime office rent to skyrocket higher than anywhere else in the Americas, according to property-consultants Cushman and Wakefield.

Until recently, Petrobras held a monopoly on most oil-related activities in the country, but the city is now home to many Brazilian branches of oil and gas companies, such as Royal Dutch Shell plc, EBX Group, Anadarko Petroleum Corp. and Exxon Mobil Corp. Today, only 2 percent of oil exploration in Brazil is conducted by foreign companies with an estimated research and development budget of $500 million in 2011, according to Forbes magazine. This number is expected to increase 25 percent, attracting investments from Chevron Corp., Repsol S.A., BP plc and a few other O&G companies. The total amount of foreign research and development investment is forecasted to hit $7 billion by 2017, said Forbes. With more and more foreign investment, there is an extensive range of job opportunities for expats moving or relocating to Brazil.

City Highlights

With a strong presence in the energy industry, Rio de Janeiro is known for much more than its thriving energy businesses. The 2014 FIFA World Cup and the 2016 Summer Olympics are coming to the city soon, showcasing what many Cariocas, as the people of Rio are called, already know – just how beautiful this city really is. Most visitors opt to stay in the Zona Sul, the Southern Zone beach areas of Copacabana, Ipanema and Leblon, which boast some of the world's most pristine beaches.

With breathtaking views from Corcovado Mountain, which houses Brazil's best-known image, the 2,329-foot tall famous Christ the Redeemer statue, the mountain represents the highest peak in Brazil and the world's largest urban forest – the Tijuca forest. The mountain offers 360-degree panoramic views and the Christ the Redeemer statue, elected as one of the New Seven Wonders of the World, crowns its peak.

Rio de Janeiro is also well-known for its annual Rio Carnivale. Although Carnivale, or Carnaval in Portuguese, is celebrated in towns and villages throughout Brazil and other Catholic countries, Rio de Janeiro is regarded as the Carnivale capital of the world. The festival draws in roughly 500,000 tourists each year for its four-day celebration 40 days before Easter.

Author: Robin Dupre


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WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Diego Pimentel  |  April 06, 2015
The only city on the list that may be higher than Houston is Dubai.
Steve  |  April 08, 2014
I believe the point of the article was highlighting the favorite cities for O&G, as in best places to live and work. Not sure why Houston would make the top ten then. Wasnt meant to be the biggest O&G cities. No offense, but the only people that want to live in Houston are Houstons.
Shawn  |  July 05, 2013
I think people are missing the point, its not saying by the numbers, its a 360 of living/working there.
Guy From Aus  |  July 03, 2013
The article says favourite O&G city, so I guess this is just popularity contest. Houston still number one for sure. Aberdeen and London right up there too.
Jamie  |  May 22, 2013
I agree with Robert. Houston still remains the #1 O&G city when you look at the numbers. Its great that other cities are getting a "piece of the pie". As for CP, he needs to do a little more research
Eric  |  May 21, 2013
Hello? Odessa
Deneen  |  May 20, 2013
Actually, Denver is know for its upcoming Oil and Gas Prospects, so it does not surprise as they are probably in a hiring state of mind and thus are reaching out to Houston to find the quality of expertise they need to cultivate and grow bigger in Oil and Gas... Hands down... the UK and Houston for the USA has the experts in the field and who cares if your city is better smelling... Houston and the GOM smells like Money to me :-)
DJ basin  |  May 12, 2013
Having lived in both Houston and Denver, they both have pluses and minuses. Houston is an oil and gas capital like NYC, London, Frankfurt, etc are to finance. If you want opportunity for growth, Houston will probably offer more. Denver has great opportunities for skiing, and hiking if you want to wander to the mountains. Denver gets unpredictable snow storms especially in spring and temperatures can swing day to day by 40-50 degrees F sometimes when cold fronts come in. Colorado has the US highest incidence of skin cancer so make sure to wear sunblock since the sun is intense here in summer. Houston does have a lot of running and biking clubs (MS150 anyone?) and beaches if you want to go to Galveston or wander down to Corpus Christi... Houston is hot and humid in summer which may be uncomfortable but good for your skin my wife tells me. Also the heat I guess is why A/C got invented. Houston is only a few hours away from Austin and San Antonio if you want to go to hill country. Both cities are good for meeting people as a lot of people have moved in from other places, but Houston is much more diverse and international than Denver (with direct flights to Europe). Last month when I flew to London, we went through Houston ironically. If your not in oil and gas and a dual career couple though, Denver is a tougher job market than Houston. One of my co-workers quit last month and I know of multiple couples that move to Houston because Denver lacks job opportunities for a trailing spouse / other non-engineering professionals. Traffic can suck in both Denver and Houston. I take light rail in Denver and took the express buses in Houston -either place if you can ride public transport, take advantage of it. Anyway, I like both places but they do have pluses and minuses to consider. [I really like Calgary too and was glad to see it as #2 as I have relatives and vacationed there a couple summers ago.]
Robert Patlovany  |  May 07, 2013
Maybe some comments writers didnt actually read the story very carefully. Houston still dominates the world oil and gas business scene. This article is simply a popularity pole of important oil and gas towns. For example, "Im not sure how Denver beat out Houston for the U.S. Just seems crazy." It is crazy if you take this article as anything but a popularity pole result. Houston still rules the oil and gas business with no close second place.
cp  |  May 07, 2013
whats not to love? Business is booming and the quality of life is sooooo much better than Houston. People actually walk outside here and there is clean air. Take that Houston!
prince  |  May 06, 2013
I am surprised, London is not in top 10. All major operators and EPC contract ors are based here.
Rob C  |  May 06, 2013
Way to go Denver!!!
Oilman  |  May 06, 2013
Denver is a big up and coming city in oil and gas with great growth prospects and its a great place to live.
Bill Leake  |  May 06, 2013
Thats both flattering and a "been there, done that" assessment. Denver has had--as I recall--three prior oil booms--and busts--in just the 50 years Ive lived here. It would be nice if we dont again go through the predictable, "Please, God, give me another oil boom and I wont piss this one away!" Its both amusing and off-putting to observe the usual scenario of buying Gulfstreams, monstrous (ostentatious) houses and profoundly gauche "bling" and then filing for bankruptcy seemingly only months later. Variety may be the spice of life but its monotony that brings home the bacon.
Fred Price  |  May 06, 2013
I love Pittsburgh, PA. Well get to #1
Ben  |  May 03, 2013
Houston is the energy capitol of the world. Period.
Trevor  |  May 03, 2013
Denver beat Houston because Houston is awful!
Luba  |  May 03, 2013
everyone knows Calgary is the centre of the world....
james  |  May 03, 2013
I am not a big fan of Houston at all, but Im not sure how Denver beat out Houston for the U.S. Just seems crazy

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