Top Five Largest Oil Companies in the US

Despite concerns about climate change, crude oil is still the dominant energy resource. Large corporations produce billions of barrels daily, with the US leading the way. The biggest players have managed to generate revenue despite the pandemic. Discover the biggest producers in the US today.

 

Chevron: The Giant

This biggest company gets a third of its production from the US. Some of its fields in California have been active for over a century. The company keeps up with the latest technologies to stimulate declining reservoirs in the region. For example, it floods them with steam.

Wells in the Gulf of Mexico account for the largest share of production. In the future, it will only intensify as the company has launched several big projects like Big Foot and Stampede. Finally, the company gets a portion of its oil and gas from the middle of the continent — Texas, New Mexico, and Colorado. 

The Permian field, used since the 1920s, is the most famous. It is the centerpiece of growth. Across both sides of the Basin, it holds 1.7 million not acres. The size of untapped reserves is estimated to reach 11.2 billion barrels of oil equivalent (BOE).

 

EOG Resources: Shale Growth

This company has the third-largest volume, but it is the biggest shale producer. Around 90% of output comes from tight formations across 48 states. The core field is Eagle Ford. The company is poised to drill over 7,600 new wells in the region, which should give several billion extra barrels of oil and NGLs. 

In the Permian, the company is expected to create over 6,800 additional wells. It also produces oil in the Rocky Mountain area. By the beginning of 2020, the company was ready to achieve a 15% compound annual growth rate. These plans were detailed by the pandemic, but EOG Resources is still the fastest-growing company in the US.

 

ConocoPhillips: Old And New

This giant pumps oil and NGLs from fields in 48 states. The company has control over 10.4 million net acres across the midsection. It is also the biggest producer in Alaska. In recent years, exploratory drilling in the region has been bolstered by the government’s tax policy. As a result, the local output is rising.

Still, the core locations for the company are Eagle Ford, Bakken, and Permian (in descending order of volume). In terms of growth, Eagle Ford and Permian are the most promising. In the coming years, production of the latter is projected to skyrocket at 60% CAGR. 

The company is combining the old with the new. It drills in Alaska and exploits shale at the same time. It is doubtful the company will ever compete with Chevron, but it is still projected to expand steadily.

 

Pioneer Natural Resources: Narrow Focus

This is the only major oil stock without international operations. Moreover, the company is now getting rid of most of its local assets, such as Eagle Ford. Pioneer Natural Resources has shifted focus to the Permian (in particular, its Midland Basin side). It is the largest producer in this core region. 

In the coming years, the company is expected to engage over 20,000 new drilling locations. The goal of the current strategic plan is 1+ million BOE/D by 2026, over 70% of which will be oil. Over the next decade, the company is expected to achieve a CAGR of over 20%.

The pandemic is bound to derail this ambitious plan. However, low prices are not the only obstacle. The Permian region production is growing so fast that infrastructure providers fail to keep up. 

Pipeline capacity may be the biggest barrier, as it drives prices upwards. However, the company has partnered up with logistics and service providers. At the moment, it has enough sand for its fracking wells and natural gas processing.

 

Marathon Oil: Shale Expansion

The past few years have been incredibly transformative for Marathon Oil. The company has shifted its focus from Canada and Libya to local production. It has acquired more land in the Permian Basin and bolstered its position in the STACK. The biggest fields in descending order of volume are the Eagle Ford, the Bakken, Oklahoma, and Permian. 

Marathon Oil has plans to expand drilling in all four areas to stoke energetic growth. So far, the strategy has delivered impressive results. It is one of the fastest-growing shale producers in the country.

The Bottom Line

These five companies are at the forefront of oil and gas production in the US. Thanks to the exploitation of vast shale resources, growth has been substantial. Despite the pandemic and the collapse of oil prices, there is still a lot of untapped potential. As the demand recovers, these companies are expected to resume growth.

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