Best States to Start an Oilfield Contracting Business (2026 Rankings)
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Starting an oilfield contracting business in 2026 can be a lucrative venture, but location matters. Regulatory environment, oil and gas production, workforce availability, and insurance costs all impact profitability. Choosing the right state ensures access to opportunities while minimizing operational and financial risks.
At Wexford Insurance, we help new and established oilfield contractors nationwide secure the insurance coverage they need to operate safely and meet operator requirements.
Top States to Start an Oilfield Contracting Business in 2026
Based on production volume, business climate, and operational considerations, the top states include:
Largest oil and gas production in the U.S.
Extensive network of operators and contractors
Business-friendly regulations and incentives
Growing oilfield services market
Lower operating costs compared to other major oil states
Skilled workforce availability
Rich in shale oil production
Opportunities for specialized drilling and fracking services
Relatively low regulatory barriers
Strong presence of offshore operations
Access to Gulf Coast markets
Favorable tax incentives for oilfield businesses
Significant shale gas production in the Marcellus region
Opportunities in both upstream and midstream services
Stable business environment for contractors
Why Insurance Matters Regardless of Location
No matter the state, oilfield contractors face high-risk operations. Insurance protects against workplace injuries, equipment damage, and environmental incidents. Key policies include:
Pollution Liability Insurance
At Wexford Insurance, we tailor insurance coverage to your location and operation type, ensuring compliance with state regulations and operator requirements. Request a free oilfield insurance quote from Wexford Insurance.
Additional Considerations for State Selection
Labor availability: Access to skilled workers is crucial for operational efficiency.
Regulatory compliance: States vary in environmental and safety regulations, impacting costs.
Operational costs: Taxes, insurance rates, and overhead differ by state.
Proximity to operators: Being close to major oilfield operators can reduce logistics costs and improve bidding opportunities.
