Independent producers – the primary producers of America’s oil and natural gas – develop 90 percent of the wells in the United States, accounting for 54 percent of America’s oil production and 85 percent of America’s natural gas production. Independents can be small family companies or publicly traded companies. These companies support over 2 million American jobs, produce 4 percent of the United States’ Gross Domestic Product, and reinvest billions of dollars back into the American economy to discover and to produce more energy in the most cost-efficient ways.
The U.S. Internal Revenue Code section 613A(d) defines an independent producer as a producer who does not have more than $5 million in retail sales of oil and gas in a year or who does not refine more than an average of 75,000 barrels per day of crude oil during a given year. There are about 9,000 independent oil and natural gas producers in the United States. These companies – many of which are small family-run businesses with limited resources – operate in 33 states and the offshore and employ an average of just 12 people. Independent oil and natural gas producers broke the code to unlock and develop oil and natural gas trapped within tight shale formations – forever changing America’s energy landscape.
As the infographics below illustrate, IPAA members play a critical role in the nation’s overall economic vitality and energy security.
About U.S. Independent Producers