US Oil Sector
The oil and gas industry is one of the major industries contributing to US economy. Also, it plays a major role in influencing the decision-making of all the other sectors. The industry has three main segments: upstream, midstream and downstream. Upstream segment involves exploration and production of crude oil & natural gas. Transportation and storage are a part of the midstream business, and downstream includes product refining, marketing and final delivery to the end customer.
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The USA is one of the leading oil-producing countries in the world. However, it was never always the case. Until 2008, the US used to import majority of its oil requirements. As the import costs increased, the US itself started to extract oil to meet its needs. Currently, the country produces nearly 75% of its crude oil supply and 90% of its natural gas supply.
Oil production in 2019 peaked in the US. However, due to COVID, production fell, leading to a fall in crude prices. As the pandemic effects are wearing out, crude prices have improved and are at their highest in the last six years at USD 83/ barrel (bbl).
With crude prices on the rise, the upstream business is likely to grow substantially, creating new opportunities for the industry. The industry is expected to grow at a compound annual growth rate (CAGR) of 3% during the next five years (2022-2027).
However, with increasing concerns about emissions, renewable energy sources are gaining popularity, which might most likely weaken the growth of the oil and gas industry.
Top 5 US Oil Company Stocks
The following stocks are the most popular oil stocks in the USA, sorted based on their market capitalization.
- Exxon Mobil
- Occidental Petroleum
- Pioneer Natural Resources
- Marathon Petroleum
Exxon Mobil is an American multinational oil and gas company headquartered in Irving, Texas. It was formed after Exxon and Mobil merged in 1999. The company boasts a diversified portfolio of high-quality projects in upstream and downstream business segments. It is also one of the world’s largest refineries and marketers of petroleum products. The product portfolio includes oil, natural gas, lubricants, and petrochemicals.
Exxon Mobil has an experienced management team who are its pillar. Mr Darren W. Woods has been the Chief Executive Officer (CEO) since 2017 and heads the company.
It is listed on New York Stock Exchange (NYSE) with the ticker ‘XOM’ and is categorized under the oil and gas integrated industry and the energy sector.
Chevron, one of the successor companies of Standard Oil, is a multinational oil and gas company. Also, the company is present across all three segments, from upstream exploration to midstream transportation and downstream refining. Furthermore, its product portfolio includes gasoline, diesel, premium base oil, lubricants, marine and aviation fuels, and fuel oil additives. Some of its brands are Chevron, Delo, Texaco, and Caltex.
Currently, Mr Michael Wirth is the CEO and Chairman since 2018. He joined Chevron in 1982 as a design engineer and is one of the most qualified CEOs to manage the company due to his long-standing experience.
Chevron is listed on the NYSE under the integrated oil companies’ industry and energy sector with a ticker ‘CVX’.
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Occidental Petroleum (Oxy) is an international energy company with operations in the United States, the Middle East, and North Africa. The company categorizes its operations into three segments: oil and gas exploration, chemical, and midstream marketing. Its products include oil, natural gas liquids, natural gas, basic chemicals, and vinyl.
Oxy is headed by Ms Vicki Hollub, the company’s president and CEO. Her association with Oxy is around 35 years, and she has taken up several roles in the company before heading it. Currently, the company’s actions focus on reducing emissions in their operations worldwide.
The company was listed on New York Stock Exchange in 1964 with the ticker symbol ‘OXY’ and had been trading actively since.
Pioneer Natural Resources
Pioneer Natural Resources was formed in 1997 after two energy companies merged to achieve synergies in the oil and natural gas space. The company has the business of producing low-cost and low-carbon-intensity oil and natural gas. It primarily operates in Texas’ Permian Basin, the world’s second-largest oilfield, and is the largest producer of hydrocarbons in the area.
The company has been continuously innovating since its formation to improve operational efficiencies and reduce its impact on the environment.
Mr Scott D. Sheffield has been the CEO of the company since 2019. He played a significant role in the American shale revolution and lifting the US crude oil export ban. Mr Sheffield is with the company since its start in 1997.
Pioneer Natural Resources is listed on NYSE with the ticker symbol ‘PXD‘.
Marathon Petroleum was incorporated in the year 1887 as Ohio Oil Company. The company changed its name to Marathon Oil in 1962 and Marathon Petroleum in 2011. Marathon Petroleum is downstream petroleum refining, marketing, and transportation company operating in the US. It has a coast-to-coast retail network offering gasoline, diesel, convenience store products, co-branded products, and cash wash services.
The company also offers industrial petroleum products and diversifies into the renewable fuels space.
Mr Michael J. Hennigan is the current president and CEO of the company. He brings over 41 years of experience in the energy sector to the company and has worked in various roles with different companies.
The shares of the company trade on the NYSE under the ticker ‘MPC‘.