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 3,800 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.
How Many Oil and Gas Extraction Companies Are There in the U.S.?
As of 2026, MNI's verified database includes approximately 3,800 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.
Key Facts on the U.S. Oil & Gas Extraction Industry
According to verified data collected by MNI, compiler and publisher of the industrial data that powers IndustrySelect, here is what we discovered about oil and gas extraction companies in MNI's database:
- MNI's verified database includes approximately 3,800 oil and gas extraction companies across the U.S.
- 238,000+ workers are employed across these companies nationwide.
- Total reported sales among oil and gas extraction companies in the database stands at approximately $1.3 trillion.
- 10.7% of companies report international distribution, while 2.2% import raw materials.
- The average facility size is 40,740 square feet.
- The average company size is 63 employees, and the average company age is 38 years.
- 0.2% of oil and gas extraction companies are women-owned.
Top Sub-Industries in U.S. Oil and Gas Extraction
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:
1. Oil and Gas Field Services (43.5%)
The largest subindustry by company count, this group includes firms offering cementing, acidizing, wireline services, pressure pumping, and well maintenance -- essential for safe and efficient operations.
2. Crude Petroleum and Natural Gas Extraction (23.6%)
These are the producers -- the companies acquiring leases, operating drilling programs, and managing daily production in major U.S. basins.
3. Oil and Gas Field Exploration Services (20.9%)
This segment supports early-stage discovery through seismic imaging, subsurface mapping, and geophysical analysis.
4. Drilling Oil and Gas Wells (9.4%)
Specialized contractors in this category operate rigs, drill horizontal and vertical wells, and often serve multiple clients across basins.
5. Natural Gas Liquids (2.5%)
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.
Top States for Oil and Gas Extraction
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 |
1. Texas -- 122,242 employees (51.3%)
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."
2. Oklahoma -- 22,469 employees (9.4%)
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.
3. Louisiana -- 19,862 employees (8.3%)
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.
4. Colorado -- 13,097 employees (5.5%)
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.
5. New Mexico -- 9,801 employees (4.1%)
New Mexico's portion of the Permian Basin has seen rapid development and significant employment growth. The state continues to attract producers due to its favorable geology and expanding infrastructure.
Other notable states include:
- North Dakota (2.7%) -- a major shale player thanks to the Bakken Formation
- Alaska (2.7%) -- known for large-scale operations in Prudhoe Bay and the North Slope
- California (2.6%) -- still active despite regulatory pressures
- Pennsylvania (2.5%) -- strong in natural gas, driven by the Marcellus Shale
- Kansas (2.2%) -- a steady conventional oil and gas producer in the midcontinent region
- Wyoming (2.1%) -- key for conventional oil and coalbed methane
Top Cities for Oil and Gas Extraction Employment
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.
Key Trends in the U.S. Oil and Gas Industry
The oil and gas extraction industry is rapidly evolving. Let’s take a look at five trends shaping its future:
1. Fracking remains a cornerstone of U.S. production
Hydraulic fracturing continues to be 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, a position the country continues to hold.
2. LNG exports are surging
With global demand for liquefied natural gas on the rise, U.S. producers are ramping up LNG terminal development along the Gulf Coast to meet international energy needs. The U.S. has emerged as a leading LNG exporter, with new capacity additions expected to come online through the latter half of the decade.
3. Emissions tracking and ESG priorities
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. Methane reduction in particular has become a central focus for both regulatory compliance and investor relations.
4. Digitization is accelerating
From AI-driven seismic analysis to real-time well monitoring and predictive maintenance, operators are embracing digitization to cut costs and boost output. Data-driven decision-making is becoming standard practice across exploration, drilling, and production operations.
5. Workforce shortages remain a challenge
Even as rigs go digital, field work still requires skilled labor. Labor shortages in drilling, engineering, and equipment service are a top concern across the sector -- creating opportunity for recruitment firms, training providers, and workforce development partners.
Ownership Trends Among Oil and Gas Companies
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.
How to Reach U.S. Oil and Gas Extraction Contacts
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.
About This Data
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