California’s Energy Backbone: Proudly Powering the State and Nation

At the California Independent Petroleum Association, we remind legislators and regulators that our industry is far more than fuel. We are the backbone of California’s economy, powering the state with energy and with millions of products that make daily life possible. From fertilizer and medical devices to eyeglasses and EV batteries, petroleum is at the heart of modern living. Without it, California’s economy could not function.

Independent oil and gas producers prove every day that they are the backbone of America’s energy future. A new Rystad Energy study shows that between 2022 and 2024, small and mid-sized producers accounted for more than 85 percent of U.S. crude oil output and over 90 percent of natural gas production. Their contribution extends well beyond energy. In 2024 alone, independents supported 3.1 million jobs nationwide, generated $277 billion in wages, and paid $129 billion in taxes. Altogether, they added nearly $488 billion to the U.S. economy, equal to about 2 percent of the nation’s GDP. For every dollar invested, $1.26 in additional value was created, helping communities grow and thrive.

These producers are the workhorses of the industry, operating 95 percent of America’s onshore wells and drilling 90 percent of new wells over the past two years.

As Anne Bradbury, CEO of the American Exploration & Production Council, put it: “Independents are the backbone of America’s oil and natural gas production and the economic strength it delivers.” For millions of families, these companies are not just energy suppliers. They are job creators, community anchors, and lifelines that keep California moving.

The message is clear: California’s oil and gas producers are proud of the work they do, proud of the communities they support, and proud of their role as the foundation of this state’s economy and America’s energy future.