Independent producers are the cornerstone of U.S. energy and economic security. New research by the American Exploration & Production Council (AXPC) and Rystad Energy underscores the importance of independent producers who accounted for 87 percent of the sector’s total economic contributions for 2024.

From millions of jobs nationwide to significant growth in state revenue, the research – which builds on prior economic studies by the Independent Petroleum Association of America and IHS Markit – affirms that oil and natural gas are essential for economic progress. As AXPC CEO Anne Bradbury states:

“The contributions of these producers go far beyond delivering reliable and secure energy that powers the economy, they also catalyze the creation of millions of jobs and provide substantial government revenues that strengthen communities across the country. The foundation of America’s energy security is built on the investment and innovation of independent producers.”

Energy Security Meets Economic Progress.

Independent producers across the United States are significant contributors to our energy mix. Between 2022 and 2024, onshore independents accounted for more than 85 percent of U.S. crude and condensate output and over 90 percent of natural gas production. In addition, independents operated 95 percent of all producing onshore wells and drilled 90 percent of new wells in the same time frame.

Their production output directly translates to economic contributions. In 2024 alone, U.S. independents:

• Provided 3.1 million industry jobs nationwide
• Paid $277 billion in labor income
• Paid $129 billion in taxes in 2024.

Overall, independents generated $488 billion in GDP output with each dollar invested producing $1.26 in secondary contributions. That’s nearly 87 percent of the total upstream oil and gas U.S. GDP contribution ($563 billion) in 2024.

Independents also accounted for 87 percent of total taxes collected from the domestic upstream sector last year. This translates in over $129 billion in government revenue to support critical needs like infrastructure development and public services.

Source: “Economic Impact of US Independent Operators”, conducted by Rystad Energy for the American Exploration & Production Council in August 2025.

Local Operators Drive Statewide Success

Shale regions across the country have become economic engines, fueling growth not just nationally but in the communities where development takes place.

Throughout the energy supply chain, activity from independents generated 2.6 million jobs in 2024, led by Texas with 1.1 million jobs created. The state also captured nearly half of all labor income from independents, putting $107 billion into the pockets of workers and communities.

The impact doesn’t stop there. Independent energy activity delivers critical tax revenue that funds services at every level of government. About 51 percent goes to the federal government, while 49 percent stays with state and local governments. That near-even split shows just how essential independents are to supporting public budgets.

Bottom Line: The evidence is clear — domestic oil and gas development delivers real value to communities. AXPC’s new report proves once again that independent producers are driving U.S. energy leadership and fueling economic growth nationwide.