Reports & Statistics » Frequently Asked Questions

1. What is an independent?
2. How many people work in the industry?
3. How much oil and natural gas is produced in the United States?

What is an independent?

The basic definition of Independents is a non-integrated company which receives nearly all of its revenues from production at the wellhead. They are exclusively in the exploration and production segment of the industry, with no marketing or refining within their operations. The tax definition published by the IRS, states that a firm is an Independent if its refining capacity is less than 50,000 barrels per day in any given day or their retail sales are less than $5 million for the year. Over the last decade, the number of independents (broad definition) has decreased from over 10,000 to approximately 7,000 while the drilling operators of record count has fallen from over 5,000 to approximately 2,000. For a more complete description of Independents, see:

• 1998 Profile of Independent Producers
• 1996 Profile of Independent Producers

How many people work in the industry?

Employment in the exploration and production sector of the oil and natural gas industry in 2000 averaged 311,100, compared to 297,400 in 1999. For 2001, the numbers have continued to increase toward 1998 levels which averaged 339,100. Sixteen years ago, 582,900 people earned their living in this sector. Since the early 1980's, 470,000 jobs relating to the oil and natural gas industry have been lost. This loss of experienced personnel continues to seriously constrain the industry's ability to meet incremental demand challenges.

How much oil and natural gas is produced in the United States?

Crude oil production in 2000 averaged 5.84 million barrels per day (MMb/d), compared to 5.88 MM b/d in 1999 and 6.25 MM b/d in 1998. Crude oil production in the lower 48 states averaged 4.86 MM b/d, while Alaskan production averaged 970,000 b/d. Total dry natural gas production in 2000 was estimated at 19.1 trillion cubic feet (Tcf), continuing a relatively flat trend over the past decade.