The fundamental definition of an Impartial Oil and Gas Consulting
and Fuel Firm is a non-integrated company which receives almost all of its revenues from production at the wellhead. They are exclusively within the exploration and manufacturing phase of the trade, with no downstream advertising and marketing or refining within their operations. The tax definition revealed by the IRS states that a agency is an Independent 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 dimension from massive publicly held firms to small proprietorships.
Many independents are privately held small corporations with less than 20 employees. The Unbiased Petroleum Association of America (IPAA) recorded in a 1998 survey that "a large percentage of independents are organized as C Corporations and S Firms at 47.6% and 27.7%, respectively. A total of 91.four% of responding firms are categorized as impartial (versus integrated) for tax purposes. More than one fifth of responding companies reported their stock is publicly traded."
Impartial producers derive funding capital from a variety of sources. A 1998 IPAA survey reports that 36.2% of capital is generated via inner sources followed by banks 27.8 % and outside traders (oil & gas partners) at 20.3 %.
Supplying Future Energy Wants
The U.S. Energy Data Administration (EIA) states of their Annual Energy Outlook 2007, "Despite the rapid progress projected for biofuels and other non-hydroelectric renewable energy sources and the expectation that orders can be placed for new nuclear power plants for the primary time in more than 25 years, oil, coal, and natural gas nonetheless are projected to offer roughly the identical 86-% share of the total U.S. primary energy supply in 2030 that they did in 2005." In this report the EIA additionally predicts constant development 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 respond to shareholder expectations have resulted in main integrated petroleum companies shifting their exploration and manufacturing focus toward the offshore within the United States and in overseas countries. Unbiased oil and gas producers increasingly account for a larger percentage of home manufacturing in the close to offshore and decrease 48 states. Independent producers' share of decrease 48 states petroleum production increased form 45 p.c in the 1980's to more than 60 % by 1995. Immediately the IPAA reports that unbiased producers develop 90 % of home oil and fuel wells, produce 68 p.c of home oil and produce 82 p.c of home gas. Clearly, they're very important to meeting our future energy needs.