The Permian Basin, located in West Texas and southeastern New Mexico, remains the leading oil and gas production area in the United States. It continues to dominate output among the largest public onshore producers, making up the majority of production for the top 50 operators in the country.
This trend was confirmed by a recent ranking compiled by Enverus, listing the top 50 public oil and gas producers in the U.S. based on their gross operated production for 2024.
Mergers and acquisitions (M&A) have reshaped the rankings over the past two years, but the Permian Basin maintains its dominant position, according to Enverus.
ExxonMobil tops the 2024 rankings, holding onto its number-one spot from 2023. Occidental Petroleum, which was ranked fifth last year, has risen to third place. Expand Energy, formed through the merger of Chesapeake Energy and Southwestern Energy, is a new entrant to the list, securing the second spot as the largest natural gas producer in the U.S.
As a result of these mergers, the top 10 public onshore producers now account for 62% of production from the top 50, up from 56% in 2023, noted Enverus CEO Manuj Nikhanj.
The increase in market share is partly due to Exxon’s $60-billion deal to acquire Pioneer Natural Resources in an all-stock transaction. Nikhanj emphasized that the Permian Basin remains the most active region for the top 50 operators, with seven of the top 10 ranking firms focusing their efforts there. The Permian accounts for 81% of oil production and 40% of gas production from the top 50 producers, according to Enverus data.
In terms of production, Exxon led with 1.96 million barrels of oil equivalent per day (boepd) in 2024, with 53% of that production being oil, primarily from the Permian. Expand Energy, in second place, produced 1.69 million boepd, with most of its output being natural gas from U.S. shale plays in the Appalachian, Marcellus, and Utica regions. Occidental Petroleum produced 1.22 million boepd, 58% of which was oil from the Permian.
Enverus data also shows that U.S. shale producers have become more efficient. Despite running fewer rigs in 2024, production levels have continued to rise. The top 50 public onshore producers were operating 298 rigs as of the latest data, compared to 322 rigs at the same time in 2023. Nikhanj pointed out that rig efficiency had increased by approximately 10%, leading to production growth even with lower rig activity.
Technological advancements and improved operational efficiency have allowed producers to maintain strong production despite fewer rigs in operation.
Looking ahead, the U.S. shale industry is expected to avoid a return to the “drill, baby, drill” approach popularized during Donald Trump’s first term. The industry is now more consolidated and disciplined, especially after a wave of M&A activity under President Biden. As many private operators have sold their operations to larger, publicly traded companies, these firms are now prioritizing higher profits and shareholder returns over rapid production growth.
With many drilling locations in the Permian now controlled by large public companies, the focus has shifted from expanding production to ensuring strong returns for investors.
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