Economy
New Orleans is home to one of the largest and busiest ports in the world, and metropolitan New Orleans is a center of maritime industry. The New Orleans region also accounts for a significant portion of the nation's oil refining and petrochemical production, and serves as a white collar corporate base for onshore and offshore petroleum and natural gas production. New Orleans is a center for higher learning, with over 50,000 students enrolled in the region's eleven two- and four-year degree granting institutions. A top 50 research university, Tulane University, is located in New Orleans' Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the health care industry and boasts a small, globally competitive manufacturing sector. The center city possesses a rapidly growing, entrepreneurial creative industries sector, and is, of course, renowned for its cultural tourism. Greater New Orleans, Inc. (GNO, Inc.) acts as the first point-of-contact for regional economic development and is slotted between Louisiana's Department of Economic Development and the various parochial business development agencies.
New Orleans came into being to act as a strategically located trading entrepot, and it remains, above all, a crucial transportation hub and distribution center for waterborne commerce. The Port of New Orleans is the 5th-largest port in the United States based on volume of cargo handled, second-largest in the state after the Port of South Louisiana, and 12th-largest in the U.S., based on value of cargo. The Port of South Louisiana, also based in the New Orleans area, is the world's busiest in terms of bulk tonnage and, when combined with the Port of New Orleans, it forms the 4th-largest port system in volume handled. Many shipbuilding, shipping, logistics, freight forwarding and commodity brokerage firms either call metropolitan New Orleans home or maintain a large local presence. Examples include Intermarine, Bisso Towboat, Northrop Grumman Ship Systems, Trinity Yachts, Expeditors International, Bollinger Shipyards, IMTT, International Coffee Corp, Boasso America, Transoceanic Shipping, Transportation Consultants Inc., Dupuy Storage & Forwarding and Silocaf. The largest coffee-roasting plant in the world, operated by Folgers, is located in New Orleans East.
Like Houston, New Orleans is located in proximity to the Gulf of Mexico and the many oil rigs that lie just offshore. Louisiana ranks fifth in oil production and eighth in reserves in the United States. It is also home to two of the four Strategic Petroleum Reserve (SPR) storage facilities: West Hackberry in Cameron Parish and Bayou Choctaw in Iberville Parish. Other infrastructure includes 17 petroleum refineries with a combined crude oil distillation capacity of nearly 2.8 million barrels per day (450,000 m3/d), the second highest in the nation after Texas. Louisiana's numerous ports include the Louisiana Offshore Oil Port (LOOP), which is capable of receiving ultra large oil tankers. Given the quantity of oil importing, Louisiana is home to many major pipelines supplying the nation: Crude Oil (Exxon, Chevron, BP, Texaco, Shell, Scurloch-Permian, Mid-Valley, Calumet, Conoco, Koch Industries, Unocal, U.S. Dept. of Energy, Locap); Product (TEPPCO Partners, Colonial, Plantation, Explorer, Texaco, Collins); and Liquefied Petroleum Gas (Dixie, TEPPCO, Black Lake, Koch, Chevron, Dynegy, Kinder Morgan Energy Partners, Dow Chemical Company, Bridgeline, FMP, Tejas, Texaco, UTP). Several major energy companies have regional headquarters in the city or its suburbs, including Royal Dutch Shell, Eni and Chevron. Numerous other energy producers and oilfield services companies are also headquartered in the city or region, and the sector supports a large professional services base of specialized engineering and design firms, as well as an office for the federal government's Minerals Management Service.
The city is the home to a single Fortune 500 company: Entergy, a power generation utility and nuclear powerplant operations specialist. In the wake of Hurricane Katrina, the city lost its other Fortune 500 company, Freeport-McMoRan, when it merged its copper and gold exploration unit with an Arizona company and relocated that division to Phoenix, Arizona. Its McMoRan Exploration affiliate remains headquartered in New Orleans. Other companies either headquartered or with significant operations in New Orleans include: Pan American Life Insurance, Pool Corp, Rolls-Royce, Newpark Resources, AT&T, TurboSquid, iSeatz, IBM, Navtech, Superior Energy Services, Textron Marine & Land Systems, McDermott International, Pellerin Milnor, Lockheed Martin, Imperial Trading, Laitram, Harrah's Entertainment, Stewart Enterprises, Edison Chouest Offshore, Zatarain's, Waldemar S. Nelson & Co., Whitney National Bank, Capital One, Tidewater Marine, Popeyes Chicken & Biscuits, Parsons Brinckerhoff, MWH Global, CH2M HILL, Energy Partners Ltd. and The Receivables Exchange.
Tourism is another staple of the city's economy. Perhaps more visible than any other sector, New Orleans' tourist and convention industry is a $5.5 billion juggernaut that accounts for 40 percent of New Orleans' tax revenues. In 2004, the hospitality industry employed 85,000 people, making it New Orleans' top economic sector as measured by employment totals. The city also hosts the World Cultural Economic Forum (WCEF). The forum, held annually at the New Orleans Morial Convention Center, is directed toward promoting cultural and economic development opportunities through the strategic convening of cultural ambassadors and leaders from around the world. The first WCEF took place in October 2008.
The federal government has a significant presence in the area. NASA's Michoud Assembly Facility is located in New Orleans East and is operated by Lockheed Martin. It is a large manufacturing facility where the external fuel tanks for the space shuttles are produced. The Michoud facility lies within the enormous New Orleans Regional Business Park, also home to the National Finance Center, operated by the United States Department of Agriculture (USDA), and the Crescent Crown distribution center. Other large governmental installations include the U.S. Navy's Space and Naval Warfare (SPAWAR) Systems Command, located within the University of New Orleans Research and Technology Park in Gentilly, NAS New Orleans, the future headquarters for the Marine Force Reserves, slated for Federal City in Algiers and the U.S. Fifth Circuit Court of Appeals.
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Famous quotes containing the word economy:
“Everyone is always in favour of general economy and particular expenditure.”
—Anthony, Sir Eden (1897–1977)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
—Ralph Waldo Emerson (1803–1882)