What is an Unbiased Oil and Gas Company?

The basic definition of an Independent Oil and Gas training and Fuel Company is a non-integrated company which receives almost all of its revenues from production at the wellhead. They’re exclusively in the exploration and manufacturing phase of the trade, with no downstream marketing or refining within their operations. The tax definition printed by the IRS states that a agency is an Unbiased if its refining capability is less than 50,000 barrels per day on any given day or their retail sales are less than $5 million for the year. Independents range in size from massive publicly held companies to small proprietorships.

Many independents are privately held small companies with less than 20 employees. The Impartial Petroleum Association of America (IPAA) recorded in a 1998 survey that “a big percentage of independents are organized as C Corporations and S Companies at 47.6% and 27.7%, respectively. A total of 91.four% of responding corporations are categorised as unbiased (versus integrated) for tax purposes. More than one fifth of responding corporations reported their stock is publicly traded.”

Unbiased producers derive investment capital from quite a lot of sources. A 1998 IPAA survey reports that 36.2% of capital is generated via internal sources adopted by banks 27.eight % and outside traders (oil & gas partners) at 20.three %.

Supplying Future Energy Wants

The U.S. Energy Information Administration (EIA) states in their Annual Energy Outlook 2007, “Despite the fast growth projected for biofuels and other non-hydroelectric renewable energy sources and the expectation that orders might be placed for new nuclear power plants for the first time in more than 25 years, oil, coal, and pure gas still are projected to provide roughly the same 86-p.c share of the total U.S. primary energy supply in 2030 that they did in 2005.” In this report the EIA additionally predicts consistent growth in U.S. energy demand from 100.2 quadrillion Btu in 2005 to 131.2 quadrillion Btu in 2030.

Maturing production areas in the lower forty eight states and the need to answer shareholder expectations have resulted in major integrated petroleum corporations shifting their exploration and manufacturing focus toward the offshore within the United States and in foreign countries. Impartial oil and fuel producers more and more account for a bigger percentage of domestic manufacturing in the near offshore and lower 48 states. Independent producers’ share of decrease forty eight states petroleum manufacturing increased form forty five % within the 1980′s to more than 60 % by 1995. At this time the IPAA reports that impartial producers develop 90 percent of domestic oil and gasoline wells, produce 68 % of domestic oil and produce 82 percent of domestic gas. Clearly, they’re very important to assembly our future energy needs.

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