Study examines independent oil, gas production
An Independent Petroleum Association of America (IPAA) commissioned study maintains independent oil and natural gas producers are dominating domestic energy markets.
The analysis, conducted by the business analytics group IHS Markit, showed independent producers accounted for 83 percent of the nation’s oil production and 90 percent of its natural gas and natural gas liquids (NGL) production.
“Independents continue to play a major role in America’s natural gas and oil industry,” IPAA President and CEO Barry Russell said. “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. With these companies making up 90 percent of 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.”
The probe also determined America’s independents drill close to 91 percent of the nation’s oil and natural gas wells; from 2016 to 2025, capital investment by independent companies is projected to increase by 87 percent; and independent producers will continue to drive solid contributions to the economy over the remainder of the study period (2025) and beyond.
