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
Jan 14, 2025 - US Mining Under Trump 2.0
- The second Trump administration is expected to “significantly prioritize” building more mines, processing facilities, and refineries in the US, as opposed to the Biden administration's focus on international cooperation to reduce US reliance on foreign supply chains for critical minerals, according to Gregory Wischer, founder of critical minerals consultancy Dei Gratia Minerals. Wischer also predicts that the Trump administration will continue and accelerate bipartisan policies strengthening US mineral supply chains. “In particular, I think you can expect the [Trump] administration to focus heavily on domestic onshoring of all parts of the mineral supply chain, especially mineral extraction,” Wischer told Mining Technology (MT) after the election. Trump’s approach will likely entail streamlining the permitting process and imposing tariffs to incentivize domestic mineral production, Wischer adds. Also, Trump’s more relaxed approach to environmental regulation is likely to benefit the mining and fossil fuel sectors, per MT.
- The post-election mood in the oil and gas industry is one of high optimism, according to The American Oil & Gas Reporter. “It borders on exuberant,” described Karr Ingham, president of Texas Alliance of Energy Producers. There’s a sense of relief in the industry that the Biden administration’s anti-fossil-fuels approach will soon be in the past. The national trade association for the oil and gas industry, the American Petroleum Institute, has a roadmap for the incoming Trump administration that includes swiftly authorizing liquified natural gas exports, expanding drilling on federal lands, making pipeline permitting easier, repealing strict vehicle emissions and fuel economy standards, and keeping current corporate tax rates in place. Trump has said he’ll create a National Energy Council to “oversee the path to US energy dominance,” and has tapped Doug Bergum, governor of oil-rich North Dakota as Interior Secretary.
- According to the US Energy Information Administration’s December Short-Term Energy Outlook (STEO), net imports of crude oil in the US in 2024 have stayed close to 2023 volumes with increasing domestic crude oil production supplying an almost equivalent increase in US refinery runs. The EIA expects US crude production to continue increasing in 2025 even as US refiners process less crude oil than in 2024, leading to net imports of crude oil falling by more than 20% to 1.9 million barrels per day in 2025, which would be the lowest net imports of crude oil since 1971. US crude oil production has risen steadily in recent years from 12 million barrels per day (bpd) in 2022 to 12.9 million bpd in 2023, and 13.2 million bpd in 2024. In 2025, domestic crude production is forecast to reach 13.5 million bpd, per the EIA.
- Natural gas production in the US will decline in 2024 amid record high demand, according to the EIA. In November, the agency projected that dry gas production would ease from a record 103.8 billion cubic feet per day (bcfd) in 2023 to 103.3 bcfd in 2024 as some producers cut back on their drilling activities after average gas prices sank to a 32-year low in March. In 2025, the EIA projects output to rise to 104.5 bcfd. The agency also projected domestic gas consumption would rise from a record 89.1 bcfd in 2023 to 90.0 bcfd in 2024 before easing back to 89.6 bcfd in 2025. If the EIA’s projections are correct, 2024 would be the first time output declines since 2020, when the pandemic cut demand for the fuel. It would also be the first time demand increases for four years in a row since 2016.
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