NAICS 213111 Quarterly Industry Report
Drilling Oil and Gas Wells
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 213111Sector: Mining, Quarrying, and Oil and Gas Extraction (21)Updated: Q1 2026
About This Report
This industry profile for Drilling Oil and Gas Wells (NAICS 213111) draws on data from the U.S. Census Bureau[10], U.S. Energy Information Administration[6], Bureau of Labor Statistics[11], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, oilfield service analysts, and drilling industry investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the drilling oil and gas wells industry.
NAICS Sector
21
Mining, Quarrying, and Oil and Gas Extraction
Industry Definition & Overview
Drilling Oil and Gas Wells (NAICS 213111) encompasses establishments primarily engaged in drilling oil and gas wells for others on a contract or fee basis, using rigs and crews owned by the drilling contractor per the U.S. Census Bureau[5]. Activities include spudding wells, directional and horizontal drilling, rig mobilization and demobilization, and wellbore construction through surface, intermediate, and production casing intervals. This classification excludes operators who drill their own wells, which are classified under NAICS 211120 or 211130.
The U.S. active rig count averaged roughly 600 rigs in 2024 per EIA[6] drilling productivity reporting, down from peak counts above 1,900 rigs during the pre-2015 shale boom. Horizontal drilling now accounts for the vast majority of new wells drilled in major shale basins including the Permian, Marcellus, Eagle Ford, and Bakken formations. Major contract drilling companies include Helmerich and Payne, Patterson-UTI Energy, Nabors Industries, and Precision Drilling. Average day rates for high-specification AC-drive rigs reflect market conditions tied to upstream operator capital spending budgets and commodity pricing. Contract drillers have invested in walking rigs, pad drilling systems, and automated pipe handling to reduce well construction time and improve safety performance.
Per the SBA Table of Size Standards[7], the size standard is $41.5 million in average annual receipts. OSHA[8] oil and gas extraction standards and MSHA[9] regulations govern rig safety, with blowout preventer testing, well control certification, and fall protection forming primary compliance requirements for drilling operations.
What's Included in This Industry
- Contract drilling of oil and gas wells
- Horizontal and directional drilling services
- Rig mobilization, rigging up, and demobilization
- Surface, intermediate, and production casing installation
- Managed pressure drilling and underbalanced drilling
- Pad drilling operations for multi-well programs
- Wellbore survey and measurement-while-drilling services
- Drilling fluid (mud) system management
- Blowout preventer testing and well control operations
- Rig maintenance, inspection, and equipment upgrades
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Mining, Quarrying, and Oil and Gas Extraction | 21 |
| Subsector | Support Activities for Mining | 213 |
| Industry Group | Support Activities for Mining | 2131 |
| NAICS Industry | Support Activities for Mining | 21311 |
| National Industry | Drilling Oil and Gas Wells | 213111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 211120 | Crude Petroleum Extraction | Crude Petroleum Extraction companies hire contract drillers to construct new wells, with drilling contractors providing rigs, crews, and directional drilling technology under daywork, footage, or turnkey contract arrangements that define the financial relationship between operator and driller |
| 211130 | Natural Gas Extraction | Natural Gas Extraction operators engage contract drilling companies to drill horizontal wells into shale formations, with gas producer capital budgets and basin-level drilling programs determining the number of rigs contracted and the pace of new well construction activity |
| 213112 | Support Activities for Oil and Gas Operations | Support Activities for Oil and Gas Operations provides completion, cementing, stimulation, and wireline services performed after the drilling contractor finishes wellbore construction, with well completion costs often exceeding drilling costs on horizontal shale wells |
| 333132 | Oil and Gas Field Machinery and Equipment Manufacturing | Oil and Gas Field Machinery and Equipment Manufacturing produces drilling rigs, mud pumps, rotary tables, top drives, and related equipment that drilling contractors purchase or lease for their rig fleets and field operations |
| 237120 | Oil and Gas Pipeline and Related Structures Construction | Oil and Gas Pipeline and Related Structures Construction builds the well pad locations, access roads, and gathering infrastructure that support drilling operations, with pad construction preceding rig mobilization and pipeline connection following well completion |
| 541360 | Geophysical Surveying and Mapping Services | Geophysical Surveying and Mapping Services provides seismic data acquisition and interpretation that operators use to select drilling locations, with geophysical survey results informing the well placement and directional drilling plans that contract drillers execute |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 36.3% | 727 |
| 2 | Oklahoma | 8.9% | 179 |
| 3 | Louisiana | 8.5% | 170 |
| 4 | Colorado | 4.3% | 86 |
| 5 | Kansas | 4.2% | 84 |
| 6 | Wyoming | 3.8% | 76 |
| 7 | California | 3.4% | 68 |
| 8 | Pennsylvania | 3.1% | 63 |
| 9 | North Dakota | 2.8% | 56 |
| 10 | Mississippi | 2.4% | 47 |
% Of Establishments
0%
36%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
128
Total SBA Loans
$128.1M
Total Loan Volume
$1.0M
Average Loan Size
8 yrs
Average Loan Term
10.39%
Average Interest Rate
1,976
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Drilling Oil and Gas Wells (NAICS 213111) has a size standard of $41.5 million in average annual receipts for federal contracting purposes. SBA lending programs[12] support rig acquisition, equipment upgrades, and working capital for qualifying contract drilling firms. 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 | Pathward National Association | 8 | $40.0M | $5.0M |
| 1 | T Bank, National Association | 8 | $40.0M | $5.0M |
| 3 | Newtek Bank, National Association | 8 | $16.8M | $2.1M |
| 4 | Northeast Bank | 32 | $10.0M | $313K |
| 5 | State Nebraska Bank & Trust | 8 | $8.3M | $1.0M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for oil well drilling?
NAICS 213111 covers contract drilling of oil and gas wells per the U.S. Census Bureau[5]. Operators who drill their own wells are classified under NAICS 211120 (crude oil) or 211130 (natural gas).
How many drilling rigs are active in the U.S.?
The U.S. active rig count averaged roughly 600 rigs in 2024 per EIA[6] drilling productivity data, with horizontal rigs targeting shale formations accounting for the large majority of active drilling activity.
What is the SBA size standard for drilling companies?
Per the SBA size standard[7], the threshold is $41.5 million in average annual receipts for federal small business contracting eligibility and SBA lending products for contract drilling firms.
What is horizontal drilling?
Horizontal drilling steers the wellbore from vertical to horizontal orientation within a target formation, allowing a single well to contact thousands of feet of productive rock per EIA[6] drilling technology descriptions. This technique transformed U.S. oil and gas production by enabling efficient extraction from shale formations.
What is a drilling day rate?
Day rate is the daily fee charged by a contract driller for rig and crew services during well construction. Day rates vary by rig type, market conditions, and basin location, with high-specification AC-drive rigs commanding premium pricing compared to older mechanical rig designs.
Who are the largest U.S. drilling contractors?
Helmerich and Payne, Patterson-UTI Energy, Nabors Industries, and Precision Drilling rank among the largest publicly traded contract drilling companies operating in U.S. oil and gas basins per industry fleet reporting data.
What safety regulations apply to drilling operations?
OSHA[8] oil and gas extraction standards govern drilling rig safety. Blowout preventer testing, well control certification, fall protection, and hydrogen sulfide monitoring form primary compliance requirements for contract drilling operations in federal and state jurisdictions.
What is pad drilling?
Pad drilling constructs multiple wells from a single surface location, with the rig walking or skidding between well positions to reduce mobilization time and surface disturbance per modern drilling practice. Pad programs of 4-8 wells per location have become standard in major shale basins for operational efficiency.
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]EIA eia.gov
- [7]SBA Table of Size Standards sba.gov
- [8]OSHA osha.gov
- [9]MSHA msha.gov
- [10]U.S. Census Bureau data.census.gov
- [11]Bureau of Labor Statistics bls.gov
- [12]SBA lending programs sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
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