Oil and Gas in the McAllen Region
Oil and natural gas have been part of the South Texas economy for more than a century. Hidalgo and Starr counties have produced natural gas for decades, and the nearby Eagle Ford Shale, located to the northwest, is one of the most productive oil and gas plays in the United States. McAllen also sits near the Mexican state of Tamaulipas, home to the Burgos Basin, a significant natural gas region.
In recent years, the region's role in energy has expanded beyond production. Pipelines now carry large volumes of Texas natural gas across the border to Mexico, where it fuels power plants and factories. Along the coast near Brownsville, a major liquefied natural gas export facility is under construction. These developments create jobs, support local suppliers, and make the McAllen area an important hub in the North American energy market.
Segments of the Oil and Gas Industry
- Upstream: Exploration and production of oil and natural gas.
- Midstream: Pipelines, processing plants, and storage facilities.
- Downstream: Refining, distribution, and retail sales.
- Oilfield services: Drilling, completion, and technical support.
- LNG and exports: Liquefying natural gas for international shipment.
The Top 10 Oil and Gas Companies Serving the McAllen Region
1. EOG Resources
EOG Resources is one of the largest crude oil and natural gas producers in the United States and a leading operator in the Eagle Ford Shale. Its South Texas operations support thousands of jobs and a large network of suppliers and service companies, many of which serve the broader Valley economy.
2. ConocoPhillips
ConocoPhillips is a major independent exploration and production company with significant Eagle Ford operations. The company is known for its focus on efficient operations and technology, and its South Texas assets are a key part of its U.S. production portfolio.
3. Kinder Morgan
Kinder Morgan operates one of the largest pipeline networks in North America, including major natural gas pipelines in South Texas. Its infrastructure moves natural gas to power plants, industrial users, and export markets, including cross-border deliveries to Mexico.
4. Energy Transfer
Energy Transfer is a large midstream company with extensive pipeline and processing assets in Texas. Its natural gas pipelines play a significant role in delivering gas to the Mexican border, where demand has grown rapidly as Mexico expands gas-fired power generation.
5. Enterprise Products Partners
Enterprise Products Partners operates pipelines, processing facilities, and export terminals along the Texas Gulf Coast. The company handles natural gas liquids, crude oil, and refined products, supporting both domestic supply and international exports.
6. NextDecade
NextDecade is developing the Rio Grande LNG export facility at the Port of Brownsville, one of the largest energy infrastructure projects in South Texas. Once complete, the facility will liquefy natural gas for export worldwide, creating jobs and economic activity across the Rio Grande Valley.
7. Texas Gas Service
Texas Gas Service is the natural gas utility that serves residential and commercial customers in McAllen and many other Valley communities. It maintains local distribution pipelines and provides reliable natural gas for heating, cooking, and business operations.
8. Valero Energy
Valero Energy is one of the largest petroleum refiners in the world, headquartered in San Antonio. Its Corpus Christi refineries supply fuels to South Texas, and the company also exports refined products to Mexico, supporting cross-border energy trade through the region.
9. Halliburton
Halliburton is one of the world's largest oilfield services companies. It provides drilling, completion, and production services to operators in the Eagle Ford and other South Texas fields, supporting skilled technical jobs throughout the region.
10. Pemex
Pemex, Mexico's state-owned oil company, operates across the border in Tamaulipas, including natural gas activity in the Burgos Basin near Reynosa. Pemex's operations and fuel imports connect closely with Texas pipelines and suppliers, making it an important part of the cross-border energy relationship centered around McAllen.
Oil and Gas Trends in South Texas
Natural gas exports to Mexico continue to grow, making the border region a critical energy corridor. LNG development on the Gulf Coast is transforming the local economy with construction jobs and long-term operational positions. Operators are also investing in technology to reduce emissions, including methane leak detection and electrified equipment. Meanwhile, workforce development programs at Valley colleges are training technicians for pipeline, process, and industrial maintenance careers.
Frequently Asked Questions
Why is natural gas important to McAllen?
Natural gas powers homes and businesses locally, and the McAllen region serves as a key corridor for pipeline exports to Mexico, supporting jobs and investment.
What careers are available in oil and gas near McAllen?
Opportunities include field technicians, pipeline operators, engineers, welders, truck drivers, safety specialists, and administrative roles with energy companies and contractors.
Final Thoughts
Oil and gas remain a vital part of the South Texas economy, and McAllen's location near production fields, pipelines, and the Mexican border gives it a unique role. The companies on this list represent production, transportation, refining, services, and exports. As the industry evolves with LNG growth and new technology, the Rio Grande Valley will continue to be an important energy hub.