NAICS 2111

Oil & Gas Extraction

Oil and gas extraction (NAICS 2111): US crude petroleum and natural gas production, onshore and offshore drilling operations, and wellhead operations.

Published by VantaInsights Research·Methodology·Data Sources· AI-drafted
Built on data from Census Bureau CBP Bureau of Labor Statistics Federal Reserve FRED SEC EDGAR

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 2111 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
91K
US Census CBP · 2023 · NAICS 2017
Establishments
5,205
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$17.5B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$192,366
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$532.9B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Oil and gas extraction (NAICS 2111) encompasses establishments engaged in the extraction of crude petroleum and natural gas from the earth, including the operation of oil and gas wells and related field operations. This industry includes both onshore and offshore drilling operations, as well as the extraction of natural gas liquids and the separation of these products at or near the wellhead. The sector is fundamental to the US energy infrastructure, supplying crude oil and natural gas that serve as primary energy sources for electricity generation, transportation, heating, and industrial processes. The industry is characterized by high capital intensity, significant technological complexity, substantial environmental and regulatory requirements, and exposure to global commodity price fluctuations that directly impact profitability and investment decisions.

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Industry Trends

01

Increased investment in offshore drilling technology and deepwater operations, particularly in the Gulf of Mexico, to access new reserves and maximize production from existing fields.

LNG

Expansion of natural gas extraction driven by demand for cleaner-burning fuel and its use in power generation and industrial applications, with associated liquefied natural gas (LNG) export capacity growth.

03

Integration of digital technologies, artificial intelligence, and data analytics to optimize well performance, reduce downtime, and improve extraction efficiency across operations.

04

Heightened focus on environmental compliance, greenhouse gas reduction initiatives, and methane emissions management in response to regulatory requirements and stakeholder pressure.

05

Strategic consolidation through mergers and acquisitions as companies seek to achieve operational scale, access new acreage, and improve financial resilience amid commodity price volatility.

Specialty Reports Available on Request

2 specialty industriesavailable on request
▾
Crude Petroleum Extraction
211120View →
Natural Gas Extraction
211130View →

Industries

Browse deeper into the NAICS hierarchy.

211120 reports

Crude Petroleum Extraction

211130 reports

Natural Gas Extraction

Frequently Asked Questions

What is NAICS 2111? ▾
NAICS 2111 is the classification code for oil and gas extraction in the United States. It includes all establishments engaged in crude petroleum and natural gas extraction from underground reservoirs, encompassing drilling operations, wellhead production, and field-level separation of extracted products. This classification is distinct from refining, transportation, and downstream operations.
What is the difference between onshore and offshore oil and gas extraction? ▾
Onshore extraction occurs on land, ranging from simple vertical wells to complex multi-well facilities across varied geological formations. Offshore extraction takes place in oceans and coastal waters, involving significantly higher capital costs, advanced platform technology, specialized safety protocols, and exposure to marine environmental conditions. Offshore operations in the US are primarily concentrated in the Gulf of Mexico and have higher per-well production rates but substantially greater technical and financial risks.
How do commodity prices affect the oil and gas extraction industry? ▾
Oil and gas extraction companies are highly exposed to global commodity price fluctuations, which directly impact revenue, profitability, and capital investment decisions. When crude oil and natural gas prices decline, operators may reduce drilling activity, defer development projects, and cut operational expenditures, while price increases stimulate exploration and production activity. This cyclical relationship creates significant planning challenges and influences employment levels, supplier demand, and investment in new technology and reserve development.
What regulatory frameworks govern oil and gas extraction in the US? ▾
The industry operates under federal, state, and local regulatory oversight covering environmental protection, safety, drilling permits, and resource management. Key regulators include the Bureau of Safety and Environmental Enforcement (BSEE), Bureau of Energy Management (BEM), the Environmental Protection Agency (EPA), and state oil and gas commissions. Regulations address wellbore integrity, environmental impact mitigation, emissions control, water management, and workplace safety, creating substantial compliance costs and operational requirements.

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