2111 - Oil and Gas Extraction

The energy sector remains vital to the global economy, and at the heart of it lies NAICS Code 2111 - Oil and Gas Extraction. This industry classification is paramount for businesses, government contracting officers, and investors focused on the extraction of crude petroleum and natural gas. Understanding this NAICS code unlocks opportunities for suppliers, contractors, and entrepreneurs in this thriving sector.

What is NAICS Code 2111: Oil and Gas Extraction?

NAICS Code 2111 represents establishments primarily engaged in the extraction of crude petroleum and natural gas. The scope includes all critical activities such as:

Exploration of oil and gas fields
Drilling wells for extraction
Producing and operating oil and gas wells

These activities are foundational for fueling industries, transportation, and residential energy needs worldwide.

Sector Overview: Mining, Quarrying, and Oil and Gas Extraction

NAICS 2111 belongs to the broader Mining, Quarrying, and Oil and Gas Extraction sector. This sector comprises industries that extract naturally occurring mineral solids, liquid minerals, and gases. Businesses under this sector play an essential role in supplying raw materials critical for manufacturing, energy, and infrastructure development.

Typical Business Activities under NAICS 2111

Crude Petroleum Extraction: Operating wells to extract crude oil from underground reservoirs.
Natural Gas Extraction: Recovering natural gas from gas wells and oil wells.
Oil and Gas Exploration Services: Seismic exploration, geophysical surveys, and other exploratory services to find oil and gas deposits.

Size Standards for NAICS 2111 Eligibility

For small business eligibility under government contracting or SBA programs, the size standards for NAICS Code 2111 are:

NAICS Code	Industry Title	Size Standard (Employees)	Size Standard (Annual Revenue)
2111	Oil and Gas Extraction	1,250 employees	$43.5 million (varies by sub-industry)

Note: The Small Business Administration (SBA) size standards can vary depending on specific sub-industries within 2111. It’s important to verify current size standards via the SBA website or federal registries.

Examples of Businesses Under NAICS Code 2111

Independent Oil and Gas Producers: Firms focused solely on crude oil extraction.
Natural Gas Operators: Companies extracting natural gas for distribution or processing.
Exploration Service Providers: Businesses specializing in seismic data collection and site assessment.

Some well-known companies or business types you might encounter include:

Onshore and offshore drilling operations
Oilfield service companies providing drilling and extraction support
Firms performing geological and geophysical exploration

NAICS 2111 Code Details Table

Attribute	Description
NAICS Code	2111
Industry Title	Oil and Gas Extraction
Sector	Mining, Quarrying, and Oil and Gas Extraction
Primary Activities	Exploration, drilling, extraction of oil and natural gas
Typical Business Types	Crude petroleum extraction, natural gas extraction, oil and gas exploration services
Size Standard	1,250 employees or ~$43.5M in annual revenue (subject to sub-industry variation)
Associated Industries	Support activities for oil and gas operations (NAICS 213111)

Frequently Asked Questions (FAQs)

1. What activities are included in NAICS Code 2111?

NAICS 2111 includes exploration, drilling, and production of crude petroleum and natural gas. It covers operating oil and gas wells but excludes support activities like equipment rental or testing, which fall under different codes.

2. How does NAICS 2111 differ from support services like drilling contractors?

NAICS 2111 is about actual extraction and production, whereas support activities such as drilling services, well maintenance, or seismic surveying may be classified under NAICS 213111 (Support Activities for Oil and Gas Operations).

3. What is the importance of identifying the correct NAICS code?

Accurate NAICS classification ensures eligibility for government contracts, access to small business programs, proper industry benchmarking, and effective market analysis.

4. Can businesses involved only in exploration fall under NAICS 2111?

Yes, exploration that directly leads to the extraction process, such as geological and geophysical surveying conducted by the extraction establishment, is included under NAICS 2111.

5. How is the size standard for NAICS 2111 determined?

Size standards are defined by the SBA and are primarily based on the number of employees or annual revenue. These size standards dictate small business eligibility for government programs.

Conclusion

NAICS Code 2111 - Oil and Gas Extraction is a critical industry classification that captures businesses engaged in extracting the essential resources of crude petroleum and natural gas. Whether you are a contractor, supplier, or entrepreneur looking to engage with this sector, understanding NAICS 2111 opens doors to new business opportunities and government contracting opportunities.

For companies looking to compete in the mining and oil and gas sector, gaining mastery of NAICS classifications, size standards, and sector details will give a strategic advantage in the marketplace.

Ensure your business classification and size status comply with the latest SBA guidelines to maximize your potential in the oil and gas extraction industry.

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