Oil and gas industry in the United States

Oil and gas industry in the United States
US Energy Information Administration · Public domain · source
Name	Oil and gas industry in the United States
Country	United States
Principal cities	Houston, Dallas, New Orleans, Pittsburgh, Denver
Major companies	ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Marathon Petroleum, Phillips 66, Valero, BP, Shell
Discovery	1859
Production	see Production and Reserves

Oil and gas industry in the United States The oil and gas industry in the United States comprises upstream exploration, midstream transportation, and downstream refining and marketing operations centered in states such as Texas, North Dakota, Alaska, Louisiana, and California. Major historical events, technological innovations, and policy decisions by actors including Standard Oil, U.S. Department of the Interior, Federal Energy Regulatory Commission, and state regulators have shaped production, trade, and environmental oversight. Markets are influenced by firms such as ExxonMobil, Chevron, ConocoPhillips, and international agreements involving OPEC and trade partners like Canada and Mexico.

History

Commercial petroleum activity began after the 1859 well in Titusville operated by Edwin Drake and investment by interests connected to John D. Rockefeller and Standard Oil, later broken up under the Sherman Antitrust Act and the antitrust actions. The 20th century saw expansion tied to events including World War I, World War II, the 1956 Suez Crisis, and the 1973 oil crisis that prompted legislation like the Emergency Petroleum Allocation Act and institutions such as the Strategic Petroleum Reserve administered by the U.S. Department of Energy. The late 20th and early 21st centuries witnessed consolidation under firms such as Gulf Oil, Texaco, Amoco, and mergers resulting in ExxonMobil and Chevron; technological revolutions tied to hydraulic fracturing and horizontal drilling transformed plays like the Permian Basin, Eagle Ford Shale, and Bakken Formation.

Production and Reserves

Primary production centers include the Permian Basin, Eagle Ford, Bakken, Marcellus, and offshore regions like the Gulf of Mexico shelf and the Cook Inlet and North Slope of Alaska. Proven reserves are periodically reassessed by organizations such as the U.S. Energy Information Administration and estimates are influenced by technology and price signals seen in indices like the West Texas Intermediate benchmark and trading on exchanges such as the New York Mercantile Exchange and the Intercontinental Exchange. Production profiles have shifted with increased natural gas yields from plays including Haynesville Shale and integrated projects involving companies such as ConocoPhillips and Shell.

Exploration and Extraction Technologies

Exploratory practices deploy seismic services provided by firms like Schlumberger, Halliburton, and Baker Hughes, using methods refined following scientific work at institutions including University of Texas at Austin and Texas A&M University. Extraction advanced with hydraulic fracturing and horizontal drilling, supported by equipment manufacturers such as Caterpillar Inc. and innovations from laboratories like Lawrence Berkeley National Laboratory. Offshore developments employ platforms modeled after designs used by Transocean and Noble Corporation and are regulated under frameworks influenced by rulings involving the U.S. Coast Guard and Bureau of Safety and Environmental Enforcement. Enhanced oil recovery techniques draw on chemical, thermal, and gas injection methods pioneered by companies including Chevron and research at Stanford University.

Transportation and Infrastructure

Midstream infrastructure includes pipeline networks operated by corporations like Kinder Morgan, Enbridge, Plains All American Pipeline, and ports such as Port of Houston and Port Arthur. Major pipeline projects have prompted legal and political disputes like those surrounding the Keystone XL pipeline and incidents involving routes such as the Dakota Access Pipeline. Rail transport by Union Pacific Railroad and BNSF Railway complements tanker shipments through terminals linked to firms like Marathon and Valero. The refining sector clusters in hubs such as the Gulf Coast and Los Angeles Basin, with significant facilities owned by Phillips 66, Valero, and PBF Energy.

Economic Impact and Employment

The sector contributes to national metrics tracked by the Bureau of Labor Statistics and the Bureau of Economic Analysis through employment, gross domestic product, and state-level revenues in Texas, North Dakota, Louisiana, and Alaska. Employment spans companies including ExxonMobil, Chevron, service providers like Schlumberger, trade unions such as the United Steelworkers, and training institutions like Pennsylvania State University. Taxation and royalties involve statutes overseen by the Internal Revenue Service and state agencies, and capital markets access occurs via listings on the New York Stock Exchange and NASDAQ where majors and independents raise capital.

Environmental and Regulatory Issues

Environmental concerns include methane emissions, oil spills exemplified by the Deepwater Horizon incident, and impacts on sensitive areas such as the Arctic National Wildlife Refuge and the Gulf of Mexico. Regulatory oversight comes from agencies including the Environmental Protection Agency, the Bureau of Land Management, and the U.S. Fish and Wildlife Service, and is affected by legislation like the Clean Air Act and the Clean Water Act. Litigation and policy debates involve stakeholders such as Sierra Club, Natural Resources Defense Council, and energy policy actors including the International Energy Agency, with market responses visible in corporate commitments announced by BP and Shell.

Market Structure and Major Companies

The market features vertically integrated firms and independents; majors include ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, EOG Resources, and Hess Corporation, while refiners and retailers include Marathon, Phillips 66, Valero, Andeavor (acquired), and integrated international players like BP and Shell. Financial players such as BlackRock and Vanguard Group hold substantial equity stakes, and commodity traders like Vitol, Trafigura, and Glencore participate in global oil flows. Market dynamics are influenced by OPEC decisions, U.S. policy actions under administrations such as Obama and Trump, and diplomatic relations with partners like Canada and Mexico.

Category:Energy industry in the United States