About

The Independent Petroleum Association of America (IPAA) represents more than 6,000 independent oil and natural gas producers and service and supply companies all across the United States. Independent producers drill 95 percent of the oil and natural gas wells in America, producing 54 percent of U.S. liquids – 54 percent oil and 81 percent condensates. Independent producers reinvest 150 percent of their American cash flow back into new American production.

Independent producers are considered the “upstream” segment of the industry. Our producers are involved in the exploration and production activities and do not own refineries or retail gasoline stations. Independent producers on average employ 11 workers and range from small, privately owned family businesses to large, publicly traded companies.

The United States currently imports 49 percent of its crude oil as a share of products supplied. Net oil imports have decreased significantly in America since 2005, when imports were at 60 percent. This is a result of the recent boost in domestic oil supply. In 2009, the United States recorded the first increase in domestic oil production since 1991 – due in large part to deepwater offshore production and the Bakken Oil Shale Formation in North Dakota. The rise in production, particularly liquids, is also due to the development of tight formations, such as the Granite Wash, Niobrara and Wolfberry.  In 2009, the United States recorded the first increase in domestic oil production since 1991 – due in large part to deepwater offshore production and the Bakken Oil Shale Formation in North Dakota. The rise in production, particularly liquids, is also due to the development of tight formations, such as the Granite Wash, Niobrara and Wolfberry.

America’s independent oil producers play a very active role both offshore and onshore. The rise of oil production in the shale plays across the country is a result of technological advancements, primarily hydraulic fracturing, horizontal and directional drilling. In fact, oil from advanced technology constitutes more than 15 percent of U.S. oil production. New technology has also allowed ultra-deepwater oil production by using equipment that can sit on the seabed and can be remotely controlled.

Offshore
Independent producers hold 81 percent of the producing leases in the offshore Gulf of Mexico (GOM), accounting for 30 percent of the GOM oil production. Independent oil and gas producers operating in the offshore GOM accounted for $38 billion in economic benefits, more than 200,000 jobs in 2009 and $10 billion in federal and state revenue and royalty payments according to an IHS Global Insight study; 121,000 jobs were created by independents in the deepwater GOM alone.

Onshore
Independent producers develop 54 percent of the onshore oil in the United States. In 2010, independent oil and gas producers operating onshore generated $263 billion in gross economic output, accounted for nearly 400,000 direct jobs and $69.2 billion in federal and state revenue and royalty payments according to an IHS Global Insight study.

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