I couldn't find figures on the percentage of oil production attributable to independent producers as opposed to major oil companies, but independent producers probably do account for a majority of production in Texas. An official with the Texas Independent Producers and Royalty Owners (TIPRO) testified at a legislative committee in 2002: "In 1999 the average Texas oil well produced 6.9 barrels per day and the average gas well produced 216 thousand cubic feet of gas per day. While these may sound like big numbers, they are not. At current prices, 6.9 barrels of oil generates $141.45 per day of revenue and 216 thousand cubic feet of gas generates $496.85 per day of revenue. No self-respecting hamburger stand would be satisfied with this level of revenue."
From the big oil company point of view, it is easier to deal with one big contractor running Iraqi oil production than it is to deal with thousands of "stripper" wells run by independent operators in Texas and Oklahoma. -------------- next part -------------- An HTML attachment was scrubbed... URL: <../attachments/20030331/54dc9a7d/attachment.htm>