Public Producers Dominate US Oil and Gas Output

Publicly traded oil and gas producers dominate production in the US, accounting for just 2% of the total number of companies but producing a staggering 68% of crude oil and natural gas in the Lower 48 states. According to data from Enverus, these firms have an edge due to massive scale, prime drilling locations, and advanced technologies.

The immense size of public producers gives them economies of scale that lower the cost of production, with a breakeven price significantly lower than privately held companies. This is driven in part by higher-quality acreage holdings that yield higher volumes of oil and gas. The top 12 firms with the most wells operate from 10,000 to over 50,000 wells, producing an average of 39,000 barrels of oil equivalent per day per well.

In contrast, 64% of all operators have 10 or fewer wells, which are nearly all stripper wells, producing less than 15 barrels of oil equivalent per day. The public company share of production is highest in the Appalachia and Permian regions, where they produce four to five times as much oil and natural gas as private companies.