Oil & Gas Producers

The 4,213 oil and gas producers in the US sell crude petroleum and natural gas from on-shore and off-shore wells to refineries, energy brokers, and other energy companies. Industry revenue is about evenly split between crude petroleum and natural gas.

Oil and Gas Price Volatility

Large declines in oil and gas prices have repercussions for producers.

Tapping Domestic Shale Deposits

The costs and hazards of transporting natural gas over long distances by ship dictate that the US’s primary sources of natural gas be domestic.

Sep 27, 2026 - Sustained Strong Global Demand

• ExxonMobil expects continued global demand for oil and natural gas to support investment in the US oil and gas industry for decades, according to the company's latest Global Outlook. The company projects global oil demand of about 105 million barrels per day in 2050 and says production would decline about 15% annually without new investment because wells naturally lose output over time. This is particularly important for US shale producers, whose wells typically decline faster than conventional wells. Technology such as longer horizontal wells, improved hydraulic fracturing, and enhanced oil recovery will remain critical for maintaining US production as tight oil fields mature. Natural gas producers could see additional opportunities as global LNG demand is projected to double by 2050. North America is expected to remain the world's largest natural gas-producing region and a major source of new LNG exports, supporting continued drilling and production.
• Steeply rising oil prices driven by geopolitical tensions haven't significantly reduced demand, according to the US Energy Secretary, signaling resilience in energy consumption despite volatility, The Wall Street Journal reports. Oil prices had surged sharply, at one point rising about 70% this year, but demand has remained steady, indicating that current price levels have not yet triggered “demand destruction.” For US oil and gas producers, this suggests a supportive demand environment, even amid price spikes and uncertainty. Strong demand allows producers to maintain output levels and supports pricing, improving revenue potential. Additionally, government actions, such as releasing oil from strategic reserves and facilitating supply flows, are helping stabilize markets and prevent severe disruptions. Short-term volatility is tied to geopolitical risks, particularly around global shipping routes. However, officials view these disruptions as temporary, suggesting that while prices may fluctuate, underlying demand and industry fundamentals remain intact.
• Organized theft targeting oilfield sites in Texas, especially in the Permian Basin, has triggered a statewide response, OilPrice.com reports. Criminal groups have moved beyond nuisance crimes like tool multimillion dollar heists including stealing full tanker-loads of produced oil, pumpjacks, and critical infrastructure. In response, the Railroad Commission of Texas and the state legislature launched a dedicated task force (STOPTHEFT) to investigate and guard against petroleum product theft, emphasizing that it threatens operations, tax revenues, and state economic security, according to OilPrice.com. The heightened enforcement could deter theft-related losses, but many operators will need to invest in stronger safeguards to protect assets. Per the latest quarterly Dallas Fed Energy Survey, 41% of exploration and production company executives said their operations have been impacted by theft in the oil field in the past year.
• Producer prices for oil and gas extraction firms jumped 24.3% in August from a year earlier, reversing an 8.9% decline in the previous August-to-August comparison, according to the latest US Bureau of Labor Statistics data. Energy prices also rose sharply for consumers. The energy Consumer Price Index increased 16.3% year over year in August, driven largely by a 27.4% surge in gasoline prices, according to the Labor Department. Despite higher energy prices, oil and gas extraction employment continued to decline, falling 1.2% year over year in August. Meanwhile, the industry's average hourly wage rose 3.7%YoY in July to $44.71, although wages have eased from their March peak, BLS data show.

Industry size & Structure

A typical oil and gas producer operates from a single location and has annual revenues of $122.6 million.

• There are about 4,210 oil and gas exploration and production firms in the US that employ 122,500 workers and generate $516.4 billion in annual revenue.
• 82% of firms have fewer than 10 employees and just 4% have more than 100 employees.
• Large exploration and production firms include: Exxon Mobil (Integrated), Chevron (Integrated), Apache Corporation, Occidental Petroleum, Devon Energy, and Range Resources.
• Entry into the business is difficult, as exploration is expensive and a proven track record is essential in attracting capital.
• In addition, the competition for high-quality drilling and services is intense, and preference is given to partners with good prior experiences.
• In 2025, Texas, New Mexico, and North Dakota ranked as the top crude oil-producing US states, according to the US Energy Information Administration.
• In 2025, Texas, Pennsylvania, and New Mexico ranked as the top natural gas-producing US states, with Texas accounting for nearly 30% of marketed production, according to the EIA.