In this piece, we will take a look at the 17 biggest energy companies in the U.S. For more companies, head on over to 5 Biggest Energy Companies in the U.S.
America is one of the world’s most industrialized regions, with the largest economy in nominal terms. This also makes it one of the world’s largest consumers of electricity, ranking second only to China through 3.9 trillion kilowatt hours (kWh) in 2021. In terms of sources of energy consumption, petroleum and natural gas account for the largest sources and renewable energy ranks in third place. Sector wise, industrial, transportation, and electrical power use are the largest electricity consumers in the U.S., and natural gas is the most widely used production source, according to data from the Energy Information Administration (EIA).
Courtesy of some of the best educational institutions in the world, the U.S. is also leading the charge in researching innovative mediums for generating renewable energy. Not only is Tesla, Inc. (NASDAQ:TSLA), an American firm, the world’s first car maker to successfully mass produce an electric vehicle, but researchers from the Massachusetts Institute of Technology (MIT) are investigating methods to improve electricity generation through waves and the Sun, as well as new mediums to store electricity. While solar cells are common these days, these materials are unable to tap the vast amounts of energy that the Sun beams down to the Earth. On this front, MIT is searching for materials that are cost effective, scalable, reliable, and efficient at the same time. To do this, they are utilizing machine learning and rapid experimentation to quickly sift through materials in hopes that a new one will provide a breakthrough.
When talking about energy, any discussion would be incomplete without nuclear power plants. There are two kinds of nuclear reactions, fission and fusion. With the former, atoms are split up to squeeze out energy from them. However, the latter is vastly more powerful (and complex) since it requires squeezing the atoms together and the resulting energy is harnessed as power. Fusion is the Sun’s primary energy source, and all nuclear plants in the world use fission instead. In the area of fusion, the U.S. federal Lawrence Livermore National Laboratory in California was able to generate more energy from a Hydrogen plasma bombarded with lasers than the electricity used in operating the lasers instead. This was a crucial breakthrough since fusion is the most efficient and cleanest source of power – even on the nuclear front as it does not generate any radioactive waste.
Additionally, America also passed one of the most important pieces of legislation for renewable energy this year, in form of the Inflation Reduction Act. This bill provides roughly $370 billion in government subsidies for clean power generation. This provides the incentive for even some of the biggest American energy companies to invest in the field. Finally, global crude oil prices have injected fresh rigor into renewable energy production, after they jumped to a whopping $139 per barrel earlier this year in the aftermath of the Russian invasion of Ukraine.
Today, we’ll take a look at the largest American energy firms, with the top picks being Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and NextEra Energy, Inc. (NYSE:NEE).
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Our Methodology
We studied the energy industry in detail to sift out which firms are the major players in oil and gas exploration, crude oil production, and marketing. They are ranked according to their market capitalization with hedge fund sentiment courtesy of Insider Monkey’s 920 fund survey for Q3 2022 also provided.
Market Capitalization as of December 23, 2022: $43 billion
Hess Corporation (NYSE:HES) is an oil company that explores, transports, and sells the fuel in the U.S., Guayana, and Asia. It has 1.3 million barrels of oil equivalent in reserves.
Hess Corporation (NYSE:HES) is also expanding its presence on the renewable energy front, as the company reached an agreement with the Guyana government in December 2022 to buy at least $750 million worth of energy credits over the next ten years. The firm is aiming to produce as much as 335,000 barrels of oil equivalent this year.
33 of the 920 hedge funds polled by Insider Monkey had bought Hess Corporation (NYSE:HES)’s shares in Q3 2022.
Out of these, Ken Fisher’s Fisher Asset Management is Hess Corporation (NYSE:HES)’s largest shareholder. It owns 4.5 million shares that are worth $500 million.
Chevron Corporation (NYSE:CVX), Hess Corporation (NYSE:HES), Exxon Mobil Corporation (NYSE:XOM), and NextEra Energy, Inc. (NYSE:NEE) are some of the biggest energy companies in America.
Market Capitalization as of December 23, 2022: $47.9 billion
Valero Energy Corporation (NYSE:VLO) is an oil refining and marketing company that sells transportation fuels and other petroleum products in bulk. It is headquartered in San Antonio, Texas.
Valero Energy Corporation (NYSE:VLO) shared in October 2022 that it is continuing to see high demand for its refining products in the wake of the Russian invasion of Ukraine, with the resulting price shock on natural gas also improving the company’s margins. Crucially, the firm is also aiming to produce 1.2 billion gallons of renewable diesel annually.
Insider Monkey took a look at 920 hedge funds for their third quarter of 2022 investments to discover that 47 had invested in Valero Energy Corporation (NYSE:VLO).
Valero Energy Corporation (NYSE:VLO)’s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 3.1 million shares that are worth $334 million.
Market Capitalization as of December 23, 2022: $49.1 billion
Phillips 66 (NYSE:PSX) refines, transports, and sells petroleum products. It is headquartered in Houston, Texas.
Like other energy companies, Phillips 66 (NYSE:PSX) is also making big moves in the renewable energy sector. The firm has allocated $2 billion for capital investments in 2023, out of which $1.1 billion will be dedicated to low carbon opportunities, such as producing low carbon fuels.
Insider Monkey surveyed 920 hedge funds to determine that 34 had invested in Phillips 66 (NYSE:PSX) during this year’s September quarter.
Phillips 66 (NYSE:PSX)’s largest investor in our database is D.E. Shaw’s D E Shaw which owns 3.1 million shares that are worth $250 million.
Market Capitalization as of December 23, 2022: $49.1 billion
American Electric Power (NYSE:AEP) is an electricity utility company that generates and sells power. The firm is based in Columbus, Ohio.
Between 2023 and 2027, American Electric Power Company, Inc. (NASDAQ:AEP) is aiming to spend $40 billion to upgrade its operations. Out of these, $9 billion will be in renewable power generation. The firm also accelerated its net zero carbon emissions goal by five years in October 2022.
By the end of Q3 2022, 35 of the 920 hedge funds polled by Insider Monkey had invested in American Electric Power Company, Inc. (NASDAQ:AEP).
American Electric Power Company, Inc. (NASDAQ:AEP)’s largest investor is Jim Simons’ Renaissance Technologies which owns 2 million shares that are worth $177 million.
Market Capitalization as of December 23, 2022: $49.5 billion
Sempra (NYSE:SRE) provides electricity and gas to thousands of customers all over the U.S. The firm operates out of San Diego, California.
The ongoing Russian invasion of Ukraine led to Europe moving away from Russian gas and focusing on LNG for its energy needs. Keeping note of this, Sempra (NYSE:SRE) entered an agreement in December 2022 through which it will sell 875,000 tons of LNG annually for 15 years to a French utility company.
27 of the 920 hedge funds polled by Insider Monkey during this year’s September quarter had held a stake in Sempra (NYSE:SRE).
Phill Gross and Robert Atchinson’s Adage Capital Management is Sempra (NYSE:SRE)’s largest investor. It owns 420,185 shares that are worth $63 million.
Market Capitalization as of December 23, 2022: $50.6 billion
Dominion Energy, Inc. (NYSE:D) is an electricity and gas company with customers in Virginia, North Carolina, Ohio, Utah, and other American states, making it one of the largest energy firms in America.
Dominion Energy, Inc. (NYSE:D) is making key moves in the carbon emissions reduction initiatives, as it provided another company with the tools to map out emissions throughout the value chain by bringing multiple data sources under a single platform.
Insider Monkey studied 920 hedge fund portfolios to discover that 29 had held a stake in Dominion Energy, Inc. (NYSE:D) during Q3 2022.
Dominion Energy, Inc. (NYSE:D)’s largest hedge fund investor is Ric Dillon’s Diamond Hill Capital which owns 3.2 million shares that are worth $223 million.
Market Capitalization as of December 23, 2022: $52.1 billion
Enterprise Products Partners L.P. (NYSE:EPD) stores, processes, and transports crude oil and natural gas. The firm is based in Houston, Texas.
Enterprise Products Partners L.P. (NYSE:EPD) scored a big win when it announced in December 2022 that it had received certification from a regulatory body for expanding its fractionation and chemicals facilities for transporting and producing sustainable products via end to end mapping.
21 of the 920 hedge funds part of Insider Monkey’s third quarter of 2022 survey had bought Enterprise Products Partners L.P. (NYSE:EPD)’s shares.
Enterprise Products Partners L.P. (NYSE:EPD)’s largest investor is Bruce Berkowitz’s Fairholme (FAIRX) which owns 3.8 million shares that are worth $92 million.
Market Capitalization as of December 23, 2022: $54.4 billion
Pioneer Natural Resources Company (NYSE:PXD) is one of America’s largest energy companies as it has more than 100 million barrels of proven oil reserves and close to 500 billion cubic feet of gas reserves.
Like other large American energy companies, Pioneer Natural Resources Company (NYSE:PXD) is also reducing its carbon dioxide emissions. During 2021, it finished two acquisitions which enabled Pioneer Natural Resources Company (NYSE:PXD) to reduce its methane emissions by 50% over 2019 levels.
Insider Monkey profiled 920 hedge funds for their Q3 2022 investments to discover that 49 had bought Pioneer Natural Resources Company (NYSE:PXD)’s shares.
Pioneer Natural Resources Company (NYSE:PXD)’s largest investor is Donald Yacktman’s Yacktman Asset Management which owns 686,869 shares that are worth $148 million.
Market Capitalization as of December 23, 2022: $58.1 billion
Occidental Petroleum Corporation (NYSE:OXY) is an oil, gas, and chemicals company that produces, stores, and transports the products. The firm is headquartered in Houston, Texas.
Occidental Petroleum Corporation (NYSE:OXY) is one of the few oil companies that is developing a carbon dioxide recapturing plant. The firm announced in November 2022 that it is building such a plant on the Texas Gulf Coast for which it is responsible for building the pipelines for CO2 transportation.
By the end of this year’s September quarter, 74 of the 930 hedge funds polled by Insider Monkey had invested in Occidental Petroleum Corporation (NYSE:OXY).
Occidental Petroleum Corporation (NYSE:OXY)’s largest hedge fund shareholder is Warren Buffett’s Berkshire Hathaway which owns 194 million shares that are worth $11 billion.
Market Capitalization as of December 23, 2022: $75 billion
Schlumberger Limited (NYSE:SLB) is an American firm that provides the oil and gas industry with software and services for managing their wells, reservoirs, and production.
Taking a unique approach towards renewable energy, Schlumberger Limited (NYSE:SLB) is partnering up with the Oman government to use artificial intelligence for mapping out the country’s potential to generate energy from geothermal sources. This project involves evaluating data from more than 7,000 oil, water and gas wells in Oman.
63 of the 920 hedge funds part of Insider Monkey’s Q3 2022 study had invested in Schlumberger Limited (NYSE:SLB).
Schlumberger Limited (NYSE:SLB)’s largest investor is Jean-Marie Eveillard First Eagle Investment Management which owns 27 million shares that are worth $971 million.
Market Capitalization as of December 23, 2022: $76.7 billion
EOG Resources, Inc. (NYSE:EOG) explores, produces, markets, and sells crude oil. It has more than 8 billion cubic feet of gas reserves and 3.7 million barrels of crude oil equivalent, for some of the largest energy reserves in America.
EOG Resources, Inc. (NYSE:EOG) capitalized on the growing demand for natural gas liquids (NGL) this year as it beat Wall Street NGL production estimates by 1% during its third quarter. This led Raymond James to raise its price target to $171 from $155 in November 2022.
By the end of 2022’s third quarter, 52 of the 920 hedge funds part of Insider Monkey’s research had bought EOG Resources, Inc. (NYSE:EOG)’s shares.
Out of these, Natixis Global Asset Management’s Harris Associates is EOG Resources, Inc. (NYSE:EOG)’s largest shareholder. It owns 7 million shares that are worth $787 million.
Market Capitalization as of December 23, 2022: $78.1 billion
The Southern Company (NYSE:SO) sells and distributes electricity and natural gas in a host of different American states such as Georgia, Illinois, and Virginia. It is one of America’s largest energy companies as it operates more than 75,000 miles of gas pipelines as part of a diverse energy footprint.
The Southern Company (NYSE:SO) is helping the U.S. government reduce its carbon footprint by partnering with the General Services Administration (GSA) which will let the agency reduce its annual energy and water costs by $3.3 million and carbon emissions by 18,000 metric tons.
31 of the 920 hedge funds polled by Insider Monkey for their September quarter of 2022 investments had held a stake in The Southern Company (NYSE:SO).
The Southern Company (NYSE:SO)’s largest shareholder is Jim Simons’ Renaissance Technologies which owns 3 million shares that are worth $208 million.
Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and NextEra Energy, Inc. (NYSE:NEE) are met by The Southern Company (NYSE:SO) in our list of America’s largest energy companies.
Click to continue reading and see 5 Biggest Energy Companies in the U.S.
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Disclosure: None. 17 Biggest Energy Companies in the U.S. is originally published on Insider Monkey.
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