The fundamental definition of an Independent Oil and Gas Company is a non-built-in firm which receives practically all of its revenues from manufacturing on the wellhead. They’re completely within the exploration and manufacturing phase of the industry, with no downstream marketing or refining inside their operations. The tax definition published by the IRS states that a firm is an Unbiased if its refining capability is lower than 50,000 barrels per day on any given day or their retail gross sales are lower than $5 million for the year. Independents range in size from large publicly held corporations to small proprietorships.
Many independents are privately held small companies with less than 20 workers. The Independent Petroleum Affiliation of America (IPAA) recorded in a 1998 survey that “a large percentage of independents are organized as C Companies and S Corporations at forty seven.6% and 27.7%, respectively. air group pair A total of 91.4% of responding companies are categorised as impartial (versus built-in) for tax purposes. More than one fifth of responding corporations reported their stock is publicly traded.”
Impartial producers derive investment capital from a variety of sources. A 1998 IPAA survey experiences that 36.2% of capital is generated by means of inner sources adopted by banks 27.Eight % and outside buyers (oil & fuel companions) at 20.Three %.
Supplying Future Power Wants
The U.S. Power Information Administration (EIA) states of their Annual Vitality Outlook 2007, “Despite the fast growth projected for biofuels and other non-hydroelectric renewable vitality sources and the expectation that orders will probably be placed for brand spanking new nuclear power plants for the first time in greater than 25 years, oil, coal, and pure fuel nonetheless are projected to supply roughly the identical 86-percent share of the whole U.S. major energy supply in 2030 that they did in 2005.” In this report the EIA additionally predicts constant growth in U.S. energy demand from 100.2 quadrillion Btu in 2005 to 131.2 quadrillion Btu in 2030.
Maturing production areas within the decrease forty eight states and the necessity to reply to shareholder expectations have resulted in main integrated petroleum corporations shifting their exploration and manufacturing focus towards the offshore in the United States and in overseas international locations. Refinery Impartial oil and fuel producers more and more account for a bigger proportion of home production in the close to offshore and lower 48 states. Unbiased producers’ share of lower forty eight states petroleum production elevated form forty five p.c in the 1980’s to greater than 60 percent by 1995. Today the IPAA reviews that unbiased producers develop 90 p.c of home oil and fuel wells, produce 68 % of domestic oil and produce 82 p.c of domestic gasoline. Clearly, they’re very important to assembly our future vitality needs.