Small Independent Oil and Gas Operators Shaping Industry Trends
Aschere Energy Dallas closely follows the independent oil and gas industry believing that the the independent oilman remains central to shaping America’s energy trends. According to the Independent Petroleum Association of America (IPAA), 95% of the nation’s oil and gas wells are drilled by 6,000 independent operators, together producing 54% of the nation’s oil. The average independent producer has been in business for 26 years, employs 11 staff, and has annual gross revenues of about $8 million. More than a half million jobs in the United States are attributed to the independent oil & gas industry. This is an industry that by its very nature reinvests in the American economy, purchasing a wide range of equipment and services across rural America every day.
The National Stripper Well Association estimates that there are 771,000 marginal oil and gas wells currently in production. The overwhelming majority of these are operated by America’s independent producers. Each of these wells makes 10 barrels of oil per day, or less. Together, stripper wells contribute about 20% of the nation’s total annual oil & gas production.
With recent oil price declines small independent oil and gas producers have to find new ways to access the financing needed to continue their operations. Unscheduled well work-overs, temporary or long term loss of pipeline access, and weather are typical problems that confront the independent oilman. New projects are constantly needed to replace declining production, and these represent large investments. From new field exploration to mature field life extensions made possible by the introduction of secondary or advanced tertiary production technologies, Aschere Energy Dallas understands these challenges – and how to balance risks versus rewards – better than most.
America’s oil industry has given the nation an unexpected windfall with growing energy independence complemented by lower prices. Growing US production volumes reduce the leverage previously enjoyed by OPEC. Today, with its more than 9.1 million barrels of daily production, America out-produces Russia and is second only to Saudi Arabia in the total output of oil. Declining US oil imports have directly reduced growth of the national debt while strengthening the dollar. Natural gas production rates assure that the lowest electricity costs in the industrialized world continue for the foreseeable future. Contact Aschere Energy Dallas to find out more about how small independent operators are shaping the US oil and gas industry and America’s future.