The Permian Basin Reigns Supreme in US Oil and Gas Production
The Permian Basin in West Texas and southeastern New Mexico remains the undisputed champion of oil and gas production in the United States. According to a recent list compiled by Enverus, the top 50 public oil and gas operators in the US, based on gross operated production in 2024, the Permian Basin accounts for the majority of output at the largest public onshore producers.
Mergers and Acquisitions Reshape the Rankings
The wave of mergers and acquisitions (M&A) in the shale patch over the past two years has significantly impacted the rankings. Supermajor ExxonMobil retains its top spot, while Occidental Petroleum has climbed to third place. Expand Energy, formed through the merger of Chesapeake Energy and Southwestern Energy, is a new entrant at number two.
Consolidation in the Industry
The top 10 US public onshore producers now account for 62% of production among the top 50, up from 56% in 2023. This consolidation is partly due to Exxon’s $60-billion acquisition of Pioneer Natural Resources. Enverus CEO Manuj Nikhanj notes that the Permian Basin is still the most active region operated by the top 50 operators, with seven of the top 10 having the Permian as their most active region.
Production Volumes
The Permian Basin dominates production volumes, accounting for 81% of oil production and 40% of gas production from the top 50 names. Exxon’s onshore production reached 1.96 million barrels of oil equivalent per day (boepd) last year, with 53% being oil and the Permian as the primary production region. Expand Energy produced 1.69 million boepd, mostly natural gas, primarily from the eastern US gas shale plays. Occidental Petroleum’s 1.22 million boepd, with 58% oil and the Permian as its prime basin, ranked it third.
Efficiency Gains Drive Production Growth
Despite running fewer rigs, the US shale patch has achieved significant efficiency gains. The top 50 public onshore producers operated 298 rigs, compared to 322 rigs in the prior year. This 10% increase in rig efficiency has driven production growth, even at lower activity levels.
A Shift in Priorities
The industry has undergone a significant transformation in recent years. With many private producers selling their operations to large publicly traded companies, the focus has shifted from high growth rates in production to higher earnings and shareholder returns. As a result, investor demands for high returns now take precedence over high growth rates in oil production.
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