EY study: Consolidation reshapes US oil and gas industry
The US oil and gas industry is experiencing a seismic transformation, driven by a wave of mergers and acquisitions that has narrowed the field of top publicly traded exploration and production companies from 50 to 40. This shift is detailed in the newly released US Oil and Gas Reserves, Production and ESG Benchmarking Study by Ernst & Young (EY). Despite the smaller set, the 40 companies analyzed still account for approximately 41% of US oil and gas production in 2024 — a proportion consistent with previous years.
The EY Benchmarking Study analyzes SEC-reported data and ESG disclosures from the 40 largest publicly traded oil and gas companies, as determined by their 2024 year-end US oil and gas reserves. The study focuses specifically on the companies’ US operations and covers the period from 2020 to 2024. These companies represent approximately 41% of total US oil and gas production and serve as a bellwether of industry trends.
“This is a defining moment for the US upstream sector,” said Pat Jelinek, EY Americas Oil & Gas and Chemicals Leader. “Fewer, stronger players are emerging, and they are better capitalized, more efficient and laser-focused on resilient growth. The new top 40 companies aren’t just survivors; they’re poised to shape the future of American energy.”
The $206.6 billion in M&A activity in 2024 — up 331% from 2023 — was driven by five megadeals of more than $10 billion in value. In 2024, 42% of the acquired assets’ value was allocated to unproved properties, up from just 18% in 2023, signaling a clear intent to build future drilling inventory and secure long-term production potential.
Despite two factors that typically help reduce production costs — falling commodity prices and expected synergies from M&A activity — costs per BOE rose by 1% in 2024. This unexpected increase highlights some of the operational challenges often seen in the early years post-M&A transaction.
Exploration and development costs declined 7% year-over-year, as companies shifted capital toward acquisitions. Yet production replacement rates remained strong, exceeding 100% from finding and development (excluding revisions), and demonstrating the sector’s ability to grow reserves even while spending less on traditional exploration.
“While the companies in our study delivered strong results, executed M&A and advanced drilling programs, the focus is shifting,” said Herb Listen, lead author of the study and Oil & Gas Assurance Partner at EY. “With ongoing uncertainty around supply and demand, pricing, tariffs and geopolitics, operational efficiency and capital discipline will be critical. The companies that adapt quickly, invest strategically and integrate effectively will define the next chapter of US energy.”
