Natural Gas Extraction — Business Survival Rate
An estimated 64% of natural gas extraction businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.7%.
Is Natural Gas Extraction a Good Business to Start?
With a 64% five-year survival rate, natural gas extraction has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 8.7% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+0.3 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 90,995 workers across 3,695 firms.
Want to know how much natural gas extraction businesses actually make?
See full revenue benchmarks for Natural Gas Extraction →Frequently Asked Questions
- What percentage of natural gas extraction businesses fail?
- Approximately 36% of natural gas extraction businesses fail within their first 5 years. The annual closure rate is 8.7%, with 275 firms closing permanently in 2023.
- Is the natural gas extraction industry growing or shrinking?
- The natural gas extraction industry is currently growing with a net job creation rate of +4.8% per year. New businesses are entering at 8.9% while 8.7% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.