The Independent Petroleum Association of America (IPAA) has represented independent oil and natural gas producers for nearly 90 years. On June 10, 1929, President Herbert Hoover called a national and state conference to discuss and formulate a practical program for the conservation of America’s natural petroleum resources. At that historic meeting at the The Broadmoor hotel in Colorado Springs, Colorado, oil operators, royalty owners, and land owners alike formed a new national association, the Independent Petroleum Association of America. Today, IPAA represents the thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 95 percent of America’s oil and gas wells, produce 54 percent of U.S. oil and produce 85 percent of U.S. natural gas.
A recent analysis has shown that independent producers are investing 150 percent of their U.S. cash flow back into American oil and natural gas development to enhance their already aggressive efforts to find and produce more energy.
The Independent Petroleum Association of America is dedicated to ensuring a strong, viable American oil and natural gas industry, recognizing that an adequate and secure supply of energy is essential to the national economy.
The Independent Petroleum Association of America is the national trade association representing the thousands of independent crude oil and natural gas explorers and producers across the United States of America. It also operates in close cooperation with 44 unaffiliated independent national, state and regional associations, which together represent thousands of royalty owners and the companies that provide services and supplies to the domestic industry.
IPAA is the industry’s strongest presence in the nation’s capital and these are important times. The entire oil and gas industry remains under fire from anti-development groups; but with these challenges arise unique opportunities that IPAA is seizing for our members.
The U.S. Internal Revenue Code section 613A(d) defines an independent producer as a producer who does not have more than $5 million in retail sales of oil and gas in a year or who does not refine more than an average of 75,000 barrels per day of crude oil during a given year. There are about 9,000 independent oil and natural gas producers in the United States. These companies operate in 33 states and the offshore and employ an average of just 12 people.
Independent producers develop 90 percent of the wells in the United States – producing 54 percent of America’s oil and 85 percent of America’s natural gas. Independents can be small family companies or publicly traded companies. These companies produce 4 percent of the United States’ Gross Domestic Product and reinvest billions of dollars back into the American economy to discover and to produce more energy in the most cost-efficient ways. As the infographics below illustrate, IPAA members play a critical role in the nation’s overall economic vitality and energy security.
The Independent Petroleum Association of America: Nearly 90 years of progress and service to the oil and natural gas producing industry.
Through boom and bust, IPAA has been on the front lines in support of America’s independent oil and natural gas producers. Founded in the summer of 1929 by a small group of determined independents, IPAA has grown to an organization of many thousands today. For nearly 90 years, IPAA’s volunteer leaders have skillfully married business savvy with political skills to keep the independent oil and natural gas industry alive and thriving.
THE FORMATIVE YEARS
Independent producers were in bad shape in 1929 and facing even more troubled times ahead. The government was encouraging oil imports. American oil reserves were plentiful, yet suspicion prevailed among federal policy makers that the United States was soon to run out of petroleum.
In a fiery address during President Herbert Hoover’s historic Oil Conservation Conference in Colorado Springs in June 1929, Wirt Franklin of Ardmore, Oklahoma, told conferees that independents were fearful that in the name of conservation, a compact may be initiated vesting absolute authority in a commission which could restrict domestic production to any extent it might desire, and allow domestic demand to be filled by the importation of foreign oil. “If this condition should be brought about,” roared Franklin, “it would mean the annihilation and destruction of the small producer of crude oil.”