Oil Drilling & Gas Extraction in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 21111Revenue
$497.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
130k
Businesses
42,338
Wages
$XX.Xbn
Oil Drilling & Gas Extraction in the US industry analysis
Oil and gas producers have experienced high volatility in recent years. The pandemic halted the economy and ripped away steady growth as restrictions limited the need for oil and gas. The conflict in Ukraine added to the uncertainty, as the reliance on Russian oil and gas was distributed between domestic producers and other sources. As the economy recovered, the need for oil and gas shot up quicker than supply could match, causing prices to surge and generating substantial returns. Revenue has swelled at a CAGR of 3.1%, reaching $497.8 billion in 2024, including a 2.3% uptick in 2024 alone.
Trends and Insights
- Global market volatility led to significant gains for US oil producers, who capitalized on high prices and low supply by increasing exports to meet rising international energy demand. Russia's invasion of Ukraine further intensified this reliance, particularly for countries like the Netherlands.
- The manufacturing sector remains energy-intensive, heavily relying on oil and gas. With a growing shift towards renewable energy, producers may face challenges as factories look to cut costs and embrace sustainable practices.
- The Southwest stands out for its drilling and extraction operations, thanks to abundant reserves in Texas and Oklahoma. These states benefit from minimal regulations and proximity to Mexico, boosting producers' revenues significantly.
- Despite efforts for energy self-sufficiency, US oil and gas imports are increasing. Improved pipeline infrastructure with Canada has boosted these imports, highlighting the ongoing need for foreign energy sources.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.1 % over the past five years, to reach an estimated $497.9bn in 2024.
Trends and Insights
Economic uncertainty induced considerable volatility
- Amid the pandemic, the government has implemented safety measures to limit its effects. These measures kept people at home and slowed nearly all industries, drastically cutting the need for fossil fuels. This caused crude oil and natural gas prices to plummet, weakening revenue and profit.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
The need for commodities mitigates price drops
- With global oil and gas production continuing to swell, prices will continue to plummet, leading to price-based declines for producers. While prices will drop over the outlook period, the need for these commodities will remain high. Falling prices are relative to very high prices compared to the current period so that profit will remain strong despite revenue creeping downward.
Biggest companies in the Oil Drilling & Gas Extraction in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Conocophillips Co | 31,258.2 | 7,862.2 | 25.2 | |
Chevron Corp | 26,260.6 | 5,984.1 | 22.8 | |
Exxon Mobil Corporation | 23,016.1 | 3,229.0 | 14.0 |
To view the market share and analysis for all 12 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Crude oil and lease condensate, Natural gas liquids and Dry natural gas. Crude oil and lease condensate is the largest segment of the Oil Drilling & Gas Extraction in the US.
Trends and Insights
Crude oil remains essential to the US economy
- Crude oil is a naturally occurring mixture of hydrocarbons located in geological formations and is commonly refined into consumer products like gasoline and plastic.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Oil & Gas Field Services in the US
- Petroleum Refining in the US
- Petrochemical Manufacturing in the US
- Oxygen & Hydrogen Gas Manufacturing in the US
International industries
- Global Oil & Gas Exploration & Production
- Oil Drilling & Gas Extraction in Canada
- Oil and Gas Extraction in Australia
- Oil and Gas Extraction in New Zealand
- Crude Petroleum & Natural Gas Extraction in the UK
Table of Contents
About this industry
Industry definition
Companies in this industry operate and develop oil and gas field properties. Activities include the exploration and production of crude petroleum; the mining and extraction of oil from oil shale and oil sands; the exploration and production of natural gas; sulfur recovery from natural gas; and the recovery of hydrocarbon liquids. Companies may operate oil and gas wells on their own account or for others on a contract or fee basis.
What's included in this industry?
Crude petroleum and natural gas Natural gas liquid Exploring for crude petroleum and natural gasWellsSeparators, emulsion breakers, desilting equipment and field gathering lines for crude petroleumCompanies
Conocophillips CoChevron CorpExxon Mobil CorporationPurchase this report to view all 12 major companies in this industry.
Related Terms
OIL FIELDNATURAL GASLIQUEFIED NATURAL GAS (LNG)OFFSHORE PLATFORMSORGANIZATION OF PETROLEUM EXPORTING COUNTRIESETHANOLIndustry Code
NAICS 2111 - Oil Drilling & Gas Extraction in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Global market volatility led to significant gains for US oil producers, who capitalized on high prices and low supply by increasing exports to meet rising international energy...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The manufacturing sector remains energy-intensive, heavily relying on oil and gas. With a growing shift towards renewable energy, producers may face challenges as factories l...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southwest stands out for its drilling and extraction operations, thanks to abundant reserves in Texas and Oklahoma. These states benefit from minimal regulations and prox...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Despite efforts for energy self-sufficiency, US oil and gas imports are increasing. Improved pipeline infrastructure with Canada has boosted these imports, highlighting the o...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Vertically integrated oil companies have the advantage. Companies like Exxon Mobil guarantee themselves a market for their products to be refined, giving themselves the best ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Conocophillips Co's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Chevron Corp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Exxon Mobil Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 9 additional companies
Detailed analysis
- Description and key data for Conocophillips Co, and factors influencing its performance in the industry
- Description and key data for Chevron Corp, and factors influencing its performance in the industry
- Description and key data for Exxon Mobil Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 9 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations are in place to protect the environment, but they have gaps. While the Clean Air and Water Acts aim to prevent pollution, exceptions for hydraulic fracturing high...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Innovation in drilling techniques has helped maintain profit, even as prices have pushed down. This means extraction costs remain low, allowing companies to capitalize on the...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Oil Drilling & Gas Extraction in the US industry in United States in 2024?
The market size of the Oil Drilling & Gas Extraction in the US industry in United States is $497.9bn in 2024.
How many businesses are there in the Oil Drilling & Gas Extraction in the US industry in 2024?
There are 42,338 businesses in the Oil Drilling & Gas Extraction in the US industry in United States, which has declined at a CAGR of 6.2 % between 2019 and 2024.
Has the Oil Drilling & Gas Extraction in the US industry in United States grown or declined over the past 5 years?
The market size of the Oil Drilling & Gas Extraction in the US industry in United States has been growing at a CAGR of 3.1 % between 2019 and 2024.
What is the forecast growth of the Oil Drilling & Gas Extraction in the US industry in United States over the next 5 years?
Over the next five years, the Oil Drilling & Gas Extraction in the US industry in United States is expected to decline.
What are the biggest companies in the Oil Drilling & Gas Extraction in the US market in United States?
The biggest companies operating in the Oil Drilling & Gas Extraction market in United States are Conocophillips Co, Chevron Corp and Exxon Mobil Corporation
What does the Oil Drilling & Gas Extraction in the US in United States include?
Crude petroleum and natural gas and Natural gas liquid are part of the Oil Drilling & Gas Extraction in the US industry.
Which companies have the highest market share in the Oil Drilling & Gas Extraction in the US in United States?
The company holding the most market share in United States is Conocophillips Co.
How competitive is the Oil Drilling & Gas Extraction in the US industry in United States?
The level of competition is high and steady in the Oil Drilling & Gas Extraction in the US industry in United States.
