21112 - Crude Petroleum ExtractionÂ
When it comes to the backbone of the energy industry, NAICS code 21112 - Crude Petroleum Extraction stands out as a critical classification. Whether you are a contractor, business owner, or investor looking to understand the nuances of this industry segment, this guide offers a comprehensive overview of what this code represents, the sector it belongs to, size standards, and typical business activities under its umbrella.
What is NAICS Code 21112?
NAICS code 21112 is designated for Crude Petroleum Extraction, encompassing establishments primarily engaged in the extraction of crude petroleum from natural gas and oil wells. This industry focuses on locating, developing, and operating oil wells to extract crude oil, laying the foundational work for downstream energy operations.
Key Industry Descriptions:
- Operating oil wells
- Oil field exploration and development
- Extraction of crude petroleum
Sector Overview: Mining, Quarrying, and Oil and Gas Extraction
NAICS 21112 falls under the broader sector:
- Sector 21: Mining, Quarrying, and Oil and Gas Extraction
This sector includes companies and operations that explore and extract naturally occurring mineral solids, liquid minerals, and gases. Specifically, code 21112 is pivotal in fueling the global energy supply chain through the extraction of crude petroleum.
Typical Business Types Under NAICS 21112
Businesses and establishments classified under this code typically include:
- Oil Well Operators: Companies that manage and operate oil wells for continuous extraction.
- Crude Petroleum Extraction Companies: Firms primarily engaged in producing crude oil from underground sources.
- Oil Field Exploration and Development Firms: Businesses overseeing geological surveys, drilling, and developing crude petroleum reserves.
Eligibility Size Standards for NAICS Code 21112
Understanding size standards is essential for firms seeking government contracts or small business certifications.
According to the U.S. Small Business Administration (SBA):
- Size Standard: Typically measured by number of employees or annual receipts.
- For NAICS 21112, the size standard is usually 1,250 employees as a maximum for a business to be considered small.
Note: Always verify the latest SBA size standards as they may change with updates.
NAICS Code 21112: Detailed Summary Table
| Feature | Description |
|---|---|
| NAICS Code | 21112 |
| Title | Crude Petroleum Extraction |
| Sector | Mining, Quarrying, and Oil and Gas Extraction |
| Industry Description | Extraction of crude petroleum; operation of oil wells and exploration |
| Examples of Businesses | Oil well operators, crude petroleum extraction companies, oil field development firms |
| Size Standard | Up to 1,250 employees (SBA small business size standard) |
| Primary Activities | Oil well operation, crude petroleum extraction, oil field exploration and development |
Frequently Asked Questions (FAQ)
What does NAICS code 21112 cover specifically?
NAICS code 21112 covers businesses primarily engaged in extracting crude petroleum, including operating oil wells and exploring oil fields.
Which sector does this NAICS code belong to?
It belongs to Sector 21: Mining, Quarrying, and Oil and Gas Extraction.
What are some examples of companies under NAICS 21112?
Examples include oil well operators, companies engaged in crude petroleum extraction, and firms focusing on oil field exploration and development.
What is the small business size standard for this NAICS code?
Typically, firms with up to 1,250 employees qualify as small businesses under this code.
Why is understanding NAICS 21112 important?
Knowing this code helps businesses identify industry classification for contracting, compliance, and market analysis, especially in the energy sector.
Conclusion
NAICS code 21112 - Crude Petroleum Extraction plays a fundamental role in the global energy market by encompassing companies that extract crude oil. From oil well operators to exploration firms, this sector enables energy generation and economic growth. Understanding the specifics of this code, its industry sector, and size standards can be crucial for businesses aiming to thrive in the petroleum extraction industry.
For contractors and stakeholders, mastering the details of NAICS 21112 can unlock valuable opportunities in government contracting, compliance, and business growth.
Optimize your business operations by leveraging the insights on NAICS code 21112 today and position yourself strategically in the competitive crude petroleum extraction market.
