Independent’ Oil, Gas Operators Drive American Energy Development By Wide Margin: What are most of the independent companies focused on drilling? SHALE!!!

Independent’ Oil, Gas Operators Drive American Energy Development By Wide Margin

 

 

Independent oil and natural gas producers are dominating the United States energy markets, according to a new study commissioned by the Independent Petroleum Association of America. Independent oil companies now accounting for 83%  of the nation’s oil production and 90% of its natural gas and natural gas liquids (NGL) production, according to “The Economic Contribution of Independent Operators in the United States,” which also finds that independent producers develop 91% 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% 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 forecast for 2020 and 2025.
Other key findings from the report:

    •    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%, and;
    •    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.
      
“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),” said IPAA President and CEO Barry Russell, in a statement. With these companies making up 90% 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.”

 

https://www.ipaa.org/wp-content/uploads/2019/05/IPAA-Economic-Contribution-Final-Report.pdf

 

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