NAICS 211120 Quarterly Industry Report
Crude Petroleum Extraction
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 211120Sector: Mining, Quarrying, and Oil and Gas Extraction (21)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 211120 provides valuation-focused intelligence for professionals assessing crude oil production businesses and properties. Data is sourced from U.S. Additional data is drawn from [Bureau of Labor Statistics[8], U.S. Census Bureau[9].. Energy Information Administration](https://www.eia.gov/) production statistics, Securities and Exchange Commission[7] reserve reporting standards, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for oil extraction enterprises.
Industry Snapshot
Key metrics for the crude petroleum extraction industry.
NAICS Sector
21
Mining, Quarrying, and Oil and Gas Extraction
Industry Definition & Overview
Crude Petroleum Extraction (NAICS 211120) encompasses establishments primarily engaged in operating oil wells and associated surface facilities for the extraction of crude petroleum from underground reservoirs. Operations range from conventional vertical well production to horizontal drilling with hydraulic fracturing (fracking) in unconventional shale and tight oil formations including the Permian Basin, Bakken, Eagle Ford, and other major producing regions. The U.S. Census Bureau[5] classifies crude petroleum extraction separately from natural gas extraction (NAICS 211130) and oil and gas drilling services (NAICS 213111), recognizing the distinct production operator business model.
The United States ranks among the world's largest crude oil producers, with the U.S. Energy Information Administration[6] tracking daily production volumes, reserve estimates, and well completion data across all producing states. The shale revolution driven by horizontal drilling and hydraulic fracturing technology has transformed domestic oil production since 2010, enabling extraction from previously uneconomic formations and reshaping global energy markets. Texas, New Mexico, North Dakota, and Oklahoma lead state-level production, with the Permian Basin alone accounting for a major share of total U.S. output.
Business valuations for crude petroleum extraction operations require reservoir engineering analysis to estimate proved, probable, and possible reserves using standards established by the Securities and Exchange Commission[7]. Appraisers evaluate producing well inventory, reserve life indices, lifting costs per barrel, lease operating expenses, acreage positions, and gathering and transportation infrastructure. Net asset value calculations based on discounted future cash flows from reserve reports represent the primary valuation methodology, supplemented by per-acre and per-flowing-barrel comparable transaction metrics from recent acquisitions tracked by industry data services.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for crude oil production operations
- Revenue and profitability analysis across conventional, unconventional shale, and enhanced oil recovery production methods
- SBA size standard classification and lending threshold data for NAICS 211120
- Comparable transaction data from recent oil property acquisitions, producing well sales, and acreage trades by basin
- Regional market analysis covering Permian Basin, Bakken, Eagle Ford, Midcontinent, and Rocky Mountain production areas
- Workforce and operating cost benchmarking for production engineers, pumpers, field operators, and lease management personnel
- Industry risk assessment including commodity price volatility, regulatory changes, depletion rates, and environmental liability exposure
- Regulatory compliance overview covering state oil and gas commission permits, EPA air emissions standards, and produced water disposal rules
- Capital expenditure profiles for drilling and completion costs, artificial lift systems, surface facilities, and gathering infrastructure
- Production metrics including barrels of oil per day, lifting cost per BOE, decline curve analysis, and reserve replacement ratios
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Mining, Quarrying, and Oil and Gas Extraction | 21 |
| Subsector | Oil and Gas Extraction | 211 |
| Industry Group | Oil and Gas Extraction | 2111 |
| NAICS Industry | Crude Petroleum Extraction | 21112 |
| National Industry | Crude Petroleum Extraction | 211120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 211130 | Natural Gas Extraction | Natural gas extraction operations that frequently co-produce crude oil and share drilling, completion, and surface processing infrastructure with petroleum production wells |
| 213111 | Drilling Oil and Gas Wells | Drilling oil and gas wells on a contract basis for crude petroleum extraction operators who outsource wellbore drilling and completion activities |
| 213112 | Support Activities for Oil and Gas Operations | Support activities for oil and gas operations including well servicing, workover, and production optimization services for crude petroleum extraction companies |
| 324110 | Petroleum Refineries | Petroleum refining establishments that purchase crude oil from extraction operations for processing into gasoline, diesel, jet fuel, and other refined products |
| 486110 | Pipeline Transportation of Crude Oil | Pipeline transportation of crude oil from production facilities to refineries and export terminals, providing takeaway capacity for extraction operations |
| 541360 | Geophysical Surveying and Mapping Services | Geophysical surveying and mapping services providing seismic data acquisition and reservoir characterization supporting crude petroleum exploration programs |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 38.8% | 1,536 |
| 2 | Oklahoma | 16.7% | 660 |
| 3 | Kansas | 6.6% | 262 |
| 4 | Louisiana | 5.2% | 204 |
| 5 | Colorado | 5.0% | 199 |
| 6 | Illinois | 3.1% | 121 |
| 7 | California | 2.7% | 106 |
| 8 | Ohio | 2.5% | 97 |
| 9 | New Mexico | 2.3% | 91 |
| 10 | Wyoming | 2.1% | 82 |
% Of Establishments
0%
39%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$4.4M
Total Loan Volume
$182K
Average Loan Size
13 yrs
Average Loan Term
9.67%
Average Interest Rate
88
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Crude Petroleum Extraction (NAICS 211120) with a size standard of 1,250 employees. Oil production companies within this threshold qualify for SBA-backed lending[12] and government contracting preferences, though capital-intensive drilling programs typically rely on reserve-based lending facilities and private equity investment for development funding. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First Northern Bank of Wyoming | 8 | $2.0M | $250K |
| 2 | Northeast Bank | 8 | $1.2M | $150K |
| 3 | Celtic Bank Corporation | 8 | $1.2M | $147K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for crude oil production?
Crude Petroleum Extraction is classified under NAICS code 211120, covering establishments operating oil wells and associated facilities per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for crude petroleum extraction?
The SBA[11] sets the size standard for NAICS 211120 at 1,250 employees, qualifying eligible oil production companies for small business government contracting preferences and SBA lending programs.
How are crude oil production companies valued?
Valuations rely on discounted cash flow analysis of proved reserves using SEC[7] reserve classification standards, supplemented by per-acre and per-flowing-barrel transaction metrics from comparable acquisitions in the same producing basin.
What are the major U.S. crude oil producing regions?
The Permian Basin (Texas and New Mexico), Bakken (North Dakota), Eagle Ford (South Texas), and Midcontinent (Oklahoma) lead U.S. production per U.S. Energy Information Administration[6] monthly drilling productivity and production reporting data.
What risks affect crude oil extraction valuations?
Major risks include commodity price volatility, well production decline rates, regulatory changes to drilling permits and environmental standards, produced water disposal constraints, and geopolitical factors influencing global oil market pricing.
What is the difference between proved and probable reserves?
Proved reserves have at least 90 percent certainty of recovery under existing conditions, while probable reserves have at least 50 percent certainty, per SEC[7] oil and gas reserve disclosure requirements and engineering standards.
How has shale production changed the U.S. oil industry?
Horizontal drilling and hydraulic fracturing have enabled extraction from shale formations, transforming the U.S. into one of the world's top producers per U.S. Energy Information Administration[6] production and technology trend data.
What environmental regulations apply to oil extraction?
Regulations include state oil and gas commission drilling permits, EPA[15] air quality and methane emission standards, produced water disposal well permits, spill prevention plans, and site reclamation bonding requirements.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]U.S. Energy Information Administration eia.gov
- [7]Securities and Exchange Commission sec.gov
- [8]U.S. Additional data is drawn from [Bureau of Labor Statistics bls.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]EPA epa.gov
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