US Mining and Energy Extraction Sector
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 22,472 mining and energy extraction establishments in the US remove natural-occurring minerals, metals, crude petroleum and natural gas from the earth. Establishments also provide support activities such as surveying and mapping, site preparation, drilling and blasting, well casing and mine wall shoring, inspection, maintenance and cleaning, demolition and waste removal, and land reclamation.
Opposition to Development
Companies may face resistance from area residents and lawmakers regarding the proposal to start a new mining or extraction project.
Environmental Compliance
The mining and energy extraction sector is directly impacted by a wide range of environmental regulations that affect production site permitting, operation, and reclamation.
Industry size & Structure
The mining and energy extraction sector comprises 22,472 establishments that employ 595,000 workers and generate about $597 billion in annual revenue, according to government sources.
- The mining and energy extraction sector represents 1.9% of the nation's Gross Domestic Product (GDP) and employs less than 1% of the country's workers.
- The sector is concentrated: the 20 largest mining and energy extraction firms represent 34% of revenue. The 50 largest firms represent 50% of revenue.
- In addition to employer establishments, the mining and energy extraction sector has 67,750 owner-operated establishments with no employees. The majority of nonemployer establishments are in the subsectors of oil and gas extraction (65%) and support services for mining (27%). The owners of nonemployer establishments typically perform the work or subcontract labor for large or complex jobs.
- Nearly 29% of all US mining and energy extraction establishments are in Texas.
- Employment in the mining, quarrying, and energy extraction sector is forecast to decline by 2.6% between 2022 and 2023, primarily due to the sharp decline in employment by US coal mines, according to the Bureau of Labor Statistics.
Industry Forecast
US Mining and Energy Extraction Sector Industry Growth
Recent Developments
Aug 14, 2024 - Sector Activity Grew in July
- Mining ranked third on the list of 10 services sectors tracked by the Institute for Supply Management's Services PMI, a nationwide monthly survey of purchasing and supply executives, to report growth in July compared to June. In July, the Services PMI registered 51.4%, 2.6 percentage points higher than June’s figure of 48.8%. Looking ahead, sales for the US mining and energy extraction industry are forecast to grow at a 4.47% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to the Interindustry Economic Research Fund. However, most of that sales growth is forecast to occur this year, with increases in sales dropping to low-single-digit levels in 2025 through 2028.
- According to the National Mining Association (NMA), a broad coalition of US mineral and energy producers supports the Energy Permitting Reform Act of 2024, bipartisan legislation introduced in July. The bill, which was advanced in the Senate Energy and Natural Resources Committee, would accelerate the permitting process for critical energy and mineral projects of all types in the US by reforming leasing, permitting, and the judicial review process for certain energy and minerals projects. NMA President and CEO Rich Nolan cited a report released by S&P Global that found it takes an average of 29 years to bring a mine online in the US, an untenable situation if the US is to secure the critical minerals needed to secure supply chains and compete with China. Coal leases on federal land, securing rights-of-way across Indian land, and hardrock mining mill sites are covered in the bill.
- In July, the International Energy Agency (IEA) trimmed its forecast for oil demand growth in 2025 to 980,000 barrels a day (bpd) from 1 million bpd previously, The Wall Street Journal reports. Meanwhile, the IEA forecasts total oil supply to average 103 million bpd this year and 104.8 million bpd in 2025, higher than the agency’s previous estimates of 102.9 million bpd and 104.7 million bpd, respectively. Declining growth in demand amid rising supply is likely to leave the oil market in surplus, reinforcing the IEA’s expectations of a major glut this decade, according to WSJ. Demand in OECD countries, including the US, is facing structural decline as the energy industry adopts energy-efficiency measures and transitions to electric vehicles, while economic growth remains weak despite major central banks starting to cut interest rates, the IEA said in its latest monthly report.
- Oil and gas extraction companies are expanding offshore drilling operations in the Gulf of Mexico in part because doing so releases fewer greenhouse gases than drilling on land, The New York Times reported in May. Industry executives are betting on sustained demand for oil and gas for years to come and argue that offshore drilling is better for the climate than drilling on land because offshore operations emit far less of the greenhouse gases than producing the same amount of oil and gas on land, according to NYT. The greenhouse gas emissions associated with extracting a barrel of oil from the Gulf of Mexico are as much as a third lower than emissions from producing a barrel of oil from fields on US soil, according to a report published last year by the National Ocean Industries Association, an industry group for offshore oil, gas, and wind businesses, cited by NYT.
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