Houston, Texas, has long been known as the energy capital of the world, a hub where oil and gas giants converge to develop, explore, and innovate in the energy sector. The city’s central role in the global oil and gas industry has been further underscored in recent years by significant mergers, acquisitions, and restructuring efforts that have reshaped the landscape for both companies and employees alike.
As of 2024, the market has seen major shifts with companies like Chevron, ConocoPhillips, and Southwestern Energy, now Expand Energy Corporation, making headlines for strategic mergers and acquisitions, and cost-cutting measures. These shifts are not only transforming the competitive dynamics of the industry but also having profound implications on jobs, especially in fields like accounting, finance, and human resources.
Key Mergers and Acquisitions
Chevron’s Acquisition of PDC Energy
One of the most notable recent developments in Houston’s oil and gas sector is Chevron’s announcement in 2022 that it was acquiring PDC Energy, a leading independent exploration and production company, for approximately $7.6 billion in stock. The deal was finalized in mid-2023 and is part of Chevron’s strategy to strengthen its oil and gas portfolio in the lucrative Permian Basin while also increasing its presence in natural gas production in key regions like the DJ Basin in Colorado.
This acquisition reflects Chevron’s broader goal of expanding its production capacity while maintaining its commitment to reducing emissions and investing in sustainable energy technologies. The deal enhances Chevron’s shale oil operations, which remain central to meeting global energy demands amid fluctuating geopolitical tensions.
ConocoPhillips and the Acquisition of Marathon Oil
In 2024, ConocoPhillips completed its acquisition of Marathon Oil’s remaining shale assets in the Eagle Ford and Permian Basins, valued at approximately $12.3 billion. This acquisition significantly bolstered ConocoPhillips’ already dominant position in North America’s shale oil market and further solidified its focus on low-cost, high-quality assets in the Permian Basin.
The deal aligns with ConocoPhillips’ strategy of focusing on high-return, low-decline assets that can drive sustainable growth in a volatile oil market. With the acquisition, ConocoPhillips has strengthened its foothold in one of the world’s most prolific oil-producing regions, ensuring long-term value creation and greater operational efficiency.
Southwestern Energy’s Expansion And Merger
Southwestern Energy, a Houston-based natural gas producer, has been very active in mergers and acquisitions, solidifying its position in the natural gas sector. In 2021, Southwestern Energy acquired Indigo Natural Resources, a major player in the Haynesville Shale, for approximately $2.7 billion. This acquisition positioned Southwestern as one of the largest independent natural gas producers in the U.S., capitalizing on the rising demand for natural gas amid a global energy transition.
In 2024, Southwestern Energy merged with Chesapeake Energy Corporation, creating Expand Energy Corporation. This merger, valued at about $20 billion, consolidated two of the most prominent companies in the North American natural gas market. The formation of Expand Energy Corporation positioned the new company as a leader in both conventional and unconventional energy production, strengthening its ability to supply natural gas domestically and globally.
Impact on the Houston Job Market
As Houston’s oil and gas industry undergoes increased consolidation, mergers, and acquisitions, the ripple effects on the local job market are becoming more pronounced. While these corporate strategies aim to maximize operational efficiencies, they also raise questions about job security and shifts in employment patterns.
Job Reductions and Workforce Streamlining
One immediate impact of these mergers and acquisitions has been a wave of job reductions and workforce streamlining. For instance, Chevron’s acquisition of PDC Energy led to the consolidation of back-office functions, including accounting, finance, and human resources. While the acquisition created synergies, it also resulted in the elimination of some positions, particularly in administrative and mid-level management roles.
Similarly, ConocoPhillips’ integration of Marathon Oil’s assets in the Eagle Ford and Permian Basins led to cost-cutting initiatives across multiple departments, such as finance, accounting, and human resources. Consolidating operations in key regions like the Permian requires fewer employees, resulting in layoffs or transfers within the company.
In Southwestern Energy’s case, although the acquisition of Indigo Natural Resources expanded the company’s footprint, it also led to restructuring efforts, with some employees in finance and accounting departments being laid off due to redundancies between the two companies.
These changes reflect a broader trend in the oil and gas industry, where companies are increasingly focusing on automation and reducing headcounts to improve profitability amid volatile oil and gas prices. Additionally, the pressure to adopt more sustainable practices has led to efforts aimed at increasing operational efficiencies.
Growing Demand for Specialized Roles
Despite job cuts in some administrative sectors, the evolving industry landscape is also creating new opportunities in specialized roles. As major companies like Chevron and ConocoPhillips seek to strengthen their environmental, social, and governance (ESG) strategies, there has been an uptick in demand for finance and accounting professionals with expertise in sustainability reporting, carbon accounting, and ESG metrics.
Furthermore, as the oil and gas industry undergoes a digital transformation, there is increased demand for financial analysts, accountants, and human resources professionals with experience in artificial intelligence, data analytics, and enterprise resource planning (ERP) systems. Mergers and acquisitions often drive the need for integration teams specializing in data analytics and financial systems, presenting growth opportunities for professionals with experience in these areas.
The expansion of renewable energy projects and focus on energy transition also require skilled workers in project finance, regulatory compliance, and human resources management, particularly in roles that support corporate sustainability goals. Companies like Chevron and Expand Energy Corporation (formerly Southwestern Energy) are investing heavily in technology, creating demand for finance professionals capable of managing and tracking these investments.
Conclusion
The oil and gas industry in Houston is undergoing a period of transformation marked by significant mergers and acquisitions, including Chevron’s purchase of PDC Energy, ConocoPhillips’ acquisition of Marathon Oil’s assets in the Eagle Ford and Permian Basins, and Southwestern Energy’s merger with Chesapeake Energy, forming Expand Energy Corporation. These moves reflect the industry’s focus on strengthening market position and improving operational efficiency. However, they also come with consequences for the workforce, especially in fields like accounting, finance, and human resources, where job cuts and restructuring efforts are prevalent.
While some roles in traditional back-office functions are being eliminated, the growing focus on sustainability, digitalization, and energy transition is generating new opportunities for professionals with specialized skills. Houston remains a pivotal city in the energy sector, but the evolution of the industry will require workers to adapt to new demands and the changing dynamics of global energy markets.
Sources:
Chevron – “Chevron announces agreement to acquire PDC energy,” (May 2023)
Financial Times – “ConocoPhillips agrees to buy Marathon Oil in $22.5B deal,” (May 2024)
PwC – “Global M&A Trends in Energy, Utilities & Resources” (2025)
