Oil production from DOI-managed leases surpasses 1B barrels for first time
WASHINGTON – The Department of the Interior announced on Feb. 11 that more than 1 billion barrels of oil were produced in fiscal year 2019 from leases on federal and American Indian-owned lands and offshore areas – a historic milestone.
This increase represents a 122.5-million-barrel increase in production compared to FY 2018.
On American Indian-owned lands, oil production increased to 92.26 million barrels and is more than 52 percent more production than in FY 2016.
“The Trump administration continues to appropriately develop our natural resources and be great stewards of conservation, benefiting all Americans,” Secretary of the Interior David Bernhardt said. “Disbursements paid to states and tribes from oil lease revenues go right back to the communities where the energy was produced, providing critical funding for schools, public services, conservation improvements, coastal restoration and infrastructure projects that create good-paying American jobs.”
At the beginning of his administration, President Trump issued two executive orders regarding energy development: “Implementing an America-First Offshore Energy Strategy”and “Promoting Energy Independence and Economic Growth.”
According to the DOI, the executive orders have served as a blueprint for the department, driving the implementation of regulatory changes and improved internal processes to more efficiently issue permits.
According to the DOI, royalty revenues collected in FY 2019 from oil production on Interior-managed lands increased by 21 percent over FY 2018 to $7.5 billion.
Often the second-highest generator of federal income following taxes, energy revenue disbursements are a source of funding to states, American Indian tribes and individual Indian mineral owners, as well as to the Land and Water Conservation Fund, Reclamation Fund, Historic Preservation Fund and the U.S. Treasury. Accounting for all energy production on federal and American Indian-owned lands and offshore areas, total revenues collected last year increased by 31 percent to approximately $12 billion, nearly double that of FY 16 revenues.
The more than $1 billion disbursed to American Indian tribes and individual Indian mineral owners is more than double the disbursements paid in FY 2016.