211 - Oil and Gas Extraction
The energy sector plays a crucial role in powering economies worldwide, and at the heart of this is NAICS Code 211 - Oil and Gas Extraction. Whether you’re a business owner, contractor, or industry analyst, understanding this code is essential for navigating government contracting, compliance, and industry classification. This blog post dives deep into NAICS 211, providing you with all the details you need to know about the oil and gas extraction industry.
What is NAICS Code 211?
NAICS Code 211 refers to the Oil and Gas Extraction industry. This classification encompasses establishments primarily involved in the extraction of crude petroleum and natural gas. The industry goes beyond mere extraction, including activities such as exploration, drilling, and production, which are foundational for supplying energy resources worldwide.
Sector Overview: Mining, Quarrying, and Oil and Gas Extraction
NAICS 211 falls under the broader Mining, Quarrying, and Oil and Gas Extraction sector. This sector covers all industries related to the extraction of natural resources from the earth. Specifically, Oil and Gas Extraction deals with:
- Exploration to locate oil and gas reserves.
- Drilling to access oil and gas underground or underwater.
- Production by extracting crude petroleum and natural gas.
Typical Business Activities Under NAICS 211
Businesses operating under NAICS 211 engage in various specialized activities, such as:
- Crude petroleum extraction
- Natural gas extraction
- Oil and gas exploration services
- Well drilling for oil and gas
- Establishment of production facilities for petroleum and natural gas
These activities require specialized equipment and skilled labor to ensure safe and efficient extraction and production.
Size Standards for NAICS 211 Eligibility
For government contracting and small business considerations, the Small Business Administration (SBA) defines size standards based on the average annual receipts or number of employees. For NAICS Code 211, the typical size standard is:
| NAICS Code | Size Standard Description | Size Standard Limit |
|---|---|---|
| 211 | Oil and Gas Extraction | $38.5 million average annual receipts |
Businesses that meet this size standard are classified as small businesses and can qualify for SBA programs and government contracts targeted toward small enterprises.
Examples of Businesses Under NAICS 211
Here are examples of companies and business types that fall within NAICS Code 211:
- Independent oil and gas producers
- Companies providing drilling services for oil and gas wells
- Exploration firms specializing in seismic surveys and geological studies
- Firms operating natural gas extraction plants
- Businesses involved in crude petroleum recovery from wells
NAICS Code 211: Detailed Code Information
| Attribute | Description |
|---|---|
| NAICS Code | 211 |
| Title | Oil and Gas Extraction |
| Description | Establishments primarily engaged in extraction of crude petroleum and natural gas, including exploration, drilling, and production. |
| Sector | Mining, Quarrying, and Oil and Gas Extraction |
| Typical Activities | Crude petroleum extraction, natural gas extraction, exploration services |
| Size Standard | $38.5 million average annual receipts |
Frequently Asked Questions (FAQ)
What activities are included in NAICS code 211?
NAICS 211 covers exploration, drilling, and production of crude petroleum and natural gas. It includes firms extracting these resources and providing related exploration services.
Who uses NAICS code 211?
Businesses, government agencies, and industry analysts use this code for classification, regulation compliance, contract bidding, and market analysis.
What is the size standard for small businesses under NAICS 211?
The SBA sets the small business size standard at $38.5 million average annual receipts for Oil and Gas Extraction businesses.
Can businesses involved in pipeline transportation be classified under NAICS 211?
No. Pipeline transportation of crude oil and natural gas is classified under a different NAICS code (e.g., 486 - Pipeline Transportation).
Why is NAICS code 211 important for government contractors?
Government contracts often specify NAICS codes for eligibility. Knowing NAICS 211 helps oil and gas extraction businesses identify contracting opportunities and comply with industry-specific regulations.
Conclusion
NAICS Code 211 plays a vital role in categorizing businesses involved in oil and gas extraction, a cornerstone of the global energy industry. Whether you’re looking to understand size standards, business activities, or government contracting opportunities, having a thorough grasp of NAICS 211 can provide a strategic advantage. Keep this guide handy as your resource for all things related to the Oil and Gas Extraction industry.
Keywords: NAICS code 211, oil and gas extraction, crude petroleum extraction, natural gas extraction, oil and gas exploration, mining and quarrying sector, government contracting, small business size standards
