NAICS 211 - Oil and Gas Extraction

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NAICS Code Industry Title
2111 Oil and Gas Extraction

What is NAICS 211

The Oil and Gas Extraction subsector (NAICS 211) encompasses industries engaged in the exploration, development, and production of crude petroleum and natural gas. Businesses operating in this sector manage activities such as drilling, well completion, and equipment operation for extracting hydrocarbons from oil and gas fields, including oil shale and oil sands. These firms prepare oil and gas products up to the point of shipment from the producing property. This sector is critical for energy supply and infrastructure, supporting broader economic and national security interests. Government agencies contract with these businesses to secure reliable energy resources, advance domestic energy production capabilities, and maintain strategic reserves.

Industry Classification for NAICS 211

Industries in the Oil and Gas Extraction subsector operate and/or develop oil and gas field properties. Operation and development activities include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; operating separators, emulsion breakers, desilting equipment, and field gathering lines for crude petroleum and natural gas; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. This subsector includes the production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the production of natural gas, sulfur recovery from natural gas, and recovery of hydrocarbon liquids.

Establishments in this subsector include those that operate oil and gas wells on their own account or for others on a contract or fee basis. Establishments primarily engaged in providing support services, on a contract or fee basis, required for the drilling or operation of oil and gas wells (except geophysical surveying and mapping, mine site preparation, construction of oil/gas pipelines, and transportation activities) are classified in Subsector 213, Support Activities for Mining.

Breakdown for NAICS 211

  • Covers exploration, drilling, and production of oil and natural gas resources.
  • Includes extraction from conventional wells, oil shale, and oil sands.
  • Focuses on all preparatory activities prior to shipment from production sites.
  • Excludes support services like geophysical surveying and pipeline construction.
  • Businesses range from independent operators to large integrated firms.
  • Subject to federal and state regulatory oversight and environmental standards.

Included Activities for NAICS 211

  • Exploration for crude petroleum and natural gas deposits.
  • Drilling, completing, and equipping oil and gas wells.
  • Operating separators and emulsion breakers for fluid processing.
  • Managing field gathering lines for hydrocarbons.
  • Recovering sulfur and hydrocarbon liquids from natural gas.
  • Mining oil from oil shale and oil sands formations.
  • Preparing extracted resources up to shipment point.

Business Types for NAICS 211

  • Independent oil and gas operators.
  • Integrated energy companies with upstream operations.
  • Contract drilling firms specializing in well completion.
  • Oil shale and oil sands mining companies.
  • Hydrocarbon processing and recovery service providers.

Government Buyers for NAICS 211

Federal agencies such as the Department of Energy (DOE), the Bureau of Land Management (BLM), and the Department of the Interior (DOI) are primary buyers of services in this sector. These agencies require oil and gas extraction expertise to manage public lands and offshore leasing areas, oversee energy resource development, and support national energy independence initiatives. Additionally, the Department of Defense (DoD) procures fuel supplies and services to ensure operational readiness. State and local governments also contract for oil and gas extraction services related to regional energy development and regulatory compliance.

Contract Types & Procurement for NAICS 211

Contracts in the Oil and Gas Extraction subsector frequently include fixed-price, cost-reimbursement, and time-and-materials agreements, depending on the nature and risk of the project. Procurements may be conducted through competitive bidding, sole source, or negotiated contracts. Typical contract values range widely, from smaller exploratory drilling projects costing hundreds of thousands of dollars to large-scale field development contracts valued in the tens of millions. Government contracts often require compliance with environmental, safety, and reporting regulations, adding complexity to contract management.

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