Public companies in the United States, despite making up only 2 percent of the approximately 12,000 oil and gas producers in the country, accounted for 68 percent of production in the downstream states in 2025. This statistic indicates that public companies have a superior position in production due to their large scale, prime drilling locations, and advanced technologies.
Economic and Technological Advantages of Public Companies
Public companies typically have lower operational costs compared to private companies. These lower costs are particularly due to the ownership of high-quality land with large volumes of oil and gas. The large size of these companies also allows them to achieve economies of scale, reducing production costs. Additionally, the 12 companies with the most wells make up less than 1 percent of all companies, yet each manages between 10,000 and over 50,000 wells, producing an average of 39,000 barrels of oil equivalent per day from each well.
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Production Distribution in Different Regions
Of the five main production regions in the downstream states, the highest share of production belongs to the Appalachian and Permian regions. In the Appalachian region, located in the northeastern United States, public companies produce nearly five times more oil and gas than private companies, despite constituting only 1 percent of active operators in the region. In the Permian region, located in New Mexico and Texas, public companies represent only 3 percent of active operators, yet they produce four times more than private companies overall.
As an exception, the Haynesville region, rich in natural gas and located between Texas and Louisiana, is the only major production area in the United States where private companies hold a majority with 55 percent of production. In this region, production is concentrated among the largest private producers. The five largest private natural gas producers alone account for 38 percent of the region's natural gas production, and the five largest private crude oil producers account for 30 percent of the region's crude oil production.
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