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The oil and gas extraction industry plays a vital role in powering the U.S. economy. From fueling transportation and heating homes to enabling manufacturing and export growth, this sector touches nearly every corner of American industry. And after navigating a challenging stretch marked by price volatility, COVID-era disruptions, and regulatory shifts, the industry is firmly back in growth mode.
New data compiled by MNI from more than 4,000 verified U.S. oil and gas extraction companies reveals how the sector is evolving. In this report, we break down key employment figures, top-producing states and cities, sub-industry trends, and mnore offering real, ground-level insights for professionals working in energy, industrial sales, marketing, sourcing, and economic development.
As of 2025, there are approximately 4,100 verified oil and gas extraction companies operating across the United States. These businesses include upstream exploration firms, drilling contractors, well servicing companies, and those processing natural gas liquids. While many are concentrated in traditional energy-producing regions, others are spread throughout the country in engineering hubs, logistics corridors, and service centers.
The U.S. oil and gas extraction industry currently employs 242,666 workers. That figure represents a modest 1% growth over the past year, signaling a steady recovery as global demand rises and operators ramp up production.
• Average company size: 38 employees
• Average facility size: 40,352 sq. ft.
• Average company age: 37 years
Oil and gas extraction is not a monolith. It includes a range of specialized segments, each playing a key role in getting hydrocarbons out of the ground and into the market:
The largest sub-industry by company count, this group includes firms offering cementing, acidizing, wireline services, pressure pumping, and well maintenance—essential for safe and efficient operations.
These are the producers—the companies acquiring leases, operating drilling programs, and managing daily production in major U.S. basins.
This segment supports early-stage discovery through seismic imaging, subsurface mapping, and geophysical analysis.
Specialized contractors in this category operate rigs, drill horizontal and vertical wells, and often serve multiple clients across basins.
Companies in this space process and distribute propane, butane, ethane, and other hydrocarbon liquids—key inputs for downstream petrochemical and energy applications.
Together, these five categories account for more than 99% of companies in the sector, reflecting a vertically integrated but highly specialized industry.
While oil and gas activity exists nationwide, employment is heavily concentrated in a few energy-rich states. These are the top 10 states by oil and gas extraction employment, based on MNI data:
| State | Number of Employees |
|---|---|
| Texas | 125,549 |
| Oklahoma | 26,550 |
| Louisiana | 20,130 |
| Colorado | 13,244 |
| New Mexico | 6,804 |
| California | 5,701 |
| Wyoming | 5,227 |
| North Dakota | 4,870 |
| Pennsylvania | 3,284 |
| Alaska | 2,570 |
Texas leads by a wide margin. Home to the Permian Basin and Eagle Ford Shale, the state’s robust infrastructure, skilled workforce, and favorable regulatory environment make it the epicenter of U.S. energy. Houston alone houses thousands of company headquarters, engineering offices, and service hubs—earning it the nickname "Energy Capital of the World."
With deep industry roots and proximity to several basins, Oklahoma remains a key player. The state is a major center for independent producers and drilling contractors and has benefited from recent investment in shale and gas infrastructure.
Louisiana's role in offshore drilling and liquefied natural gas (LNG) exports makes it indispensable to U.S. energy strategy. Its ports, refineries, and pipeline systems support tens of thousands of high-skill jobs.
The Denver-Julesburg Basin supports a diverse mix of operators. Colorado is also known for its growing base of companies focused on low-carbon oilfield technologies, water management, and environmental compliance.
New Mexico’s portion of the Permian Basin has seen rapid development. The state continues to attract producers due to its favorable geology and streamlined permitting.
Other notable states include:
• California (2.3%) – Still active despite regulatory pressures
• Wyoming (2.2%) – Key for conventional oil and coalbed methane
• North Dakota (2.0%) – A major shale player thanks to the Bakken Formation
• Pennsylvania (1.4%) – Strong in natural gas, driven by the Marcellus Shale
• Alaska (1.1%) – Known for large-scale operations in Prudhoe Bay and the North Slope
These five U.S. cities stand out as major hubs for oil and gas activity:
• Houston, TX – 52,679 employees
• Midland, TX – 15,599 employees
• Oklahoma City, OK – 10,968 employees
• Odessa, TX – 5,676 employees
• Denver, CO – 5,572 employees
Houston leads the way with corporate headquarters, EPC firms, and energy investors, while Midland and Odessa anchor field operations in West Texas. Oklahoma City and Denver round out the list with strong service ecosystems and regional reach.
The oil and gas extraction industry is rapidly evolving. Let’s take a look at five trends shaping its future:
Hydraulic fracturing is still the most transformative force in U.S. energy. It has unlocked previously unreachable reserves and made the U.S. the top global producer of both oil and natural gas.
With global demand for liquefied natural gas on the rise, U.S. producers are ramping up LNG terminal development along the Gulf Coast and West Coast to meet international energy needs.
Companies are under pressure from investors and regulators to reduce flaring, improve emissions monitoring, and report ESG metrics—creating new demand for environmental technologies and data solutions.
From AI-driven seismic analysis to real-time well monitoring and predictive maintenance, operators are embracing digitization to cut costs and boost output.
Even as rigs go digital, field work still requires skilled labor. Labor shortages in drilling, engineering, and equipment service are a top concern—creating opportunity for recruitment and workforce development partners.
Ownership structures reflect the mix of legacy operators and new ventures:
• Privately held corporations: 53.0%
• LLCs: 19.9%
• Publicly traded corporations: 19.0%
• Other (S-corps, sole proprietors): 8.1%
This split shows the presence of both major players and smaller, agile firms operating across regional markets.
The U.S. oil and gas extraction industry is adapting to a new era, global opportunity, domestic policy shifts, and technological change all playing a part in the industry’s rapid development. This sector continues to offer major opportunity. But only for those who know where to look.
For those selling into this fast-changing industry, accessing accurate and reliable is key. Reach detailed profiles of more than 4,100 oil and gas extraction companies and their 11,000+ executives with the Oil & Gas Extraction Industrial Database, only from MNI. Looking for another industry or want industrial leads by region? Explore all of our databases, see a sample profile, or set up your free demo account, loaded with 500 real company profiles, so you can test it out for yourself.
The insights in this report are based on verified data collected by MNI, publisher and compiler of the industrial data that powers IndustrySelect and IndustryNet. MNI’s research team contacts each and every company in our database directly to confirm operational details, employment figures, and facility data, ensuring unmatched accuracy and depth. Learn more at mni.net