U.S. Oil Production on Federal Lands

Concentration risk?

U.S. Oil Production on Federal Lands
We expect the Department of Interior (DOI) to release 2022 calendar year datasets in March

As we wait to update our files, we took another look at annual U.S. oil production from onshore Federal leases, through 2021

GOP control of the House assures attempts at Federal leasing and permitting reform, in addition to other changes at the BLM, as well as broader project siting and environmental review

As it relates to U.S. onshore oil production from Federal leases, we continue to question where additional growth is expected to come from

Unless another New Mexico Delaware Basin is found on Federal lands, the idea that more leasing, more permitting, more drilling will assuredly result in materially higher oil production is fools gold rather than black gold

Oil Production by County, Size and Year

Enersection took annual DOI county-level oil production data and broke it down into 5 buckets to show the dispersion of oil production.  It should become clear only a few counties in the U.S. are driving recent growth.

Counties with less than 100 barrels per day.  Note the chart is interactive on hover.

Less than 1,000 barrels per day.

Less than 10,000 barrels per day.

Less than 100,000 barrels per day.

All counties.

U.S. oil production growth would be challenged without Federal production in Lea and Eddy counties in New Mexico.  U.S. Energy policy should not assume politicians can do with a pen - spray and pray for oil - what wildcatters have been unable to do with rigs over the last two decades.

Look for DOI gas data and the 2022 updates soon.

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