Phone: (405) 424-1699
 
As a proactive leader in our industry, we want to urge you to join us in the Domestic Energy Producers Alliance (DEPA).
 

DEPA is ...

  • A unique approach to domestic onshore oil and natural gas advocacy. We are an alliance of independent producers, royalty owners, oilfield service companies and state and national oil and natural gas associations.


  • A nationwide collaboration. DEPA and its 13 collaborating trade association partners - from California to West Virginia, Texas to Montana - represent about 10,000 individuals and companies engaged in domestic onshore oil and natural gas production and exploration (E&P).


  • Focused and bipartisan. We believe the only way to accomplish our sharply-focused agenda is to establish common ground. We consistently seek common sense solutions to the challenges that face us in business, including our relationships with the Legislative and Executive branches of the federal government.


  • Young and growing. Currently in its fifth year, DEPA gives a loud, clear voice to the majority of individuals and companies responsible for the current American energy renaissance.

DEPA represents domestic independents

Independent oil and natural gas producers are non-integrated companies that operate almost exclusively in the domestic exploration and production (E&P) segment of the industry. Independents are not “Big Oil.”

More than 18,000 independent producers drill about 95% of US oil and natural gas wells and account for 67% of US oil and gas production. While there are some large, publicly-traded companies among the nation’s independent producers, the average company size is 11 employees. Independent producers typically invest more than 100% of their revenue in finding new domestic energy sources. Meanwhile, major, integrated oil companies are in all sectors of the energy industry on a global scale. Besides E&P, the majors own pipelines, refining and dominate the marketing of wholesale/retail fuels (gasoline, jet fuel, and diesel). The majors drill the majority of their wells outside the United States.      

These distinctions are important because in every budget proposal since 2009, President Obama has proposed eliminating $4 billion in tax provisions for the oil and natural gas industry. He has said these provisions are unnecessary because of high profits reported by major oil companies.

But three of the key tax provisions targeted by the Administration—intangible drilling costs (IDCs), percentage depletion and tertiary injectants —are limited to drilling and production enhancement activities in the US. It is vital to understand that these key tax provisions primarily impact independent producers, not the five major oil companies.

Additionally, critical industry tax provisions have been placed on the chopping block by powerful Congressional leaders in the name of comprehensive tax reform. If any of the current tax reform drafts are passed as-is, it will put the brakes on America's drive toward energy independence.

Small independents and royalty owners will be hardest hit because of the elimination of tax deductions that have been law since the 1920s. The immediate effect of repealing the oil and gas industry’s allowance for percentage depletion is a significant tax increase for thousands of America’s smallest energy company owners, investors and partners, as well as more than eight million royalty and mineral owners - many of whom count on the time-tested tax provisions to make payroll and pay the monthly bills.

Today, DEPA and our collaborating association partners are the clearest, most effective voices for America’s independent oil and natural gas industry. The DEPA agenda is sharply focused to distinguish our mission. Above all, DEPA is committed to common sense legislative and regulatory solutions that strengthen our industry’s pursuit of North American energy independence.