An independent producer is a taxpayer who produces oil for the market without owning a pipeline system or refinery. These producers often benefit from a 15% percentage depletion rate.
The term 'Oil Patch' refers to states in the United States that produce and refine significant amounts of oil and natural gas. Key states include Texas, Oklahoma, Louisiana, California, and Alaska. Economists often refer to Oil Patch states when assessing the impact of oil price fluctuations on the regional economy.
