May 29, 2019 New Study: ‘Independent’ Oil, Gas Operators Drive American Energy Development By Wide Margin
IHS Markit report finds independents continue to drive our economy and generate billions in tax revenue while drilling 91% of nation’s wells.
WASHINGTON, D.C. – Independent oil and natural gas producers are dominating the United States energy markets – now accounting for 83 percent of the nation’s oil production and 90 percent of its natural gas and natural gas liquids (NGL) production, according to a new study commissioned by the Independent Petroleum Association of America. The study, “The Economic Contribution of Independent Operators in the United States,” also finds that independent producers develop 91 percent of the nation’s natural gas and oil wells.
Independent natural gas and oil producers are defined as those companies that typically do not have midstream or refining operations, unlike the much-larger “major” or “international” oil companies. The report looked at more than 2,200 companies, and the direct, indirect and induced jobs created through their upstream activities. The report also provides state-level analysis, including production, well count and operating expenses by state.
The study, conducted by the business analytics group IHS Markit, also describes the economic contribution of independent oil and natural gas operators in the United States – up to $573 billion or 2.8% of U.S. GDP in 2018 and expected to rise to $823 billion or 3.0% of U.S. GDP by 2025.
Oil, natural gas and NGL production, as well as drilling and operations were analyzed for 2016, 2017 and 2018, and were forecasted for 2020 and 2025.
Key findings from the report:
- Independent companies account for 83 percent of America’s oil production, 90 percent of its natural gas and natural gas liquids (NGL) production
- Operating in 32 states plus the Gulf of Mexico, America’s independents drill close to 91% of the nation’s oil and natural gas wells.
- Through their business, supported 4.5 million American jobs in 2018.
- From 2016 to 2025, capital investment by independent companies is projected to increase by 87 percent.
- Independent producers will continue to drive solid contributions to the U.S. economy over the remainder of the study period (2025) and, quite likely, beyond.
IPAA President and CEO Barry Russell: “Independents continue to play a major role in America’s natural gas and oil industry. Their entrepreneurial spirit and willingness to take on risk spawns innovation – like opening up shale plays – while creating jobs and contributing to U.S. gross domestic product (GDP). With these companies making up 90 percent of U.S. natural gas activity, their production is a critical component in supporting regional and local economies, maintaining strong national security and the effort to tackle global climate change with improved technology and efficiency.”
Read the full report here.
About the Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA) is a national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 91 percent of the
nation’s oil and natural gas wells. These companies account for 83 percent of America’s oil production, 90 percent of its natural gas and natural gas liquids (NGL) production, and support over 4.5 million American jobs. Learn more about IPAA by visiting www.ipaa.org and following @IPAAaccess on Twitter.