Wednesday, March 11, 2020
The U.S. Department of the Interior (DOI) said in February that more than 1 Bbbl of oil were produced in fiscal year 2019 from leases on federal and tribal lands and offshore areas, a historic milestone. The production level marked a more than 29% increase in production compared to the end of the previous administration when output totaled 808.7 MMbbl in 2016. Production was also up 122.5 MMbbl compared to 2018.
On American Indian-owned land, 2019 oil production rose to 92.26 MMbbl, marking an advance of more than 52% compared to 2016. “The Trump administration continues to appropriately develop our natural resources and be great stewards of conservation, benefiting all Americans,” said Secretary of the Interior David Bernhardt. “Disbursements paid to states and tribes from oil lease revenues go right back to the communities where the energy was produced, providing critical funds 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. The executive orders have served as a blueprint for the Interior Department, driving the implementation of common sense regulatory changes and improved internal processes to more efficiently issue permits. These actions have helped propel secure and reliable American energy development on public lands and waters in a responsible manner—a prerequisite to a safer and more prosperous America and a boon to American conservation.
Royalty revenues collected in 2019 from oil production on Interior-managed lands increased 21% year over year to $7.5 billion, sustaining a successful upward trend for the Trump administration. Revenues from producing oil leases rose by $1.3 billion compared to 2018 and were 122% higher than at the end of the prior administration in 2016.
Often the second-largest generator of federal income following taxes, energy revenue disbursements are a critical source of funding to states, 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 tribal-owned lands and offshore areas, total revenues collected last year increased by 31% to about $12 billion, nearly double that of 2016 revenues.
The more than $1 billion disbursed to tribes and individual Indian mineral owners was more than double that paid in 2016. The revenues disbursed to the 33 federally recognized tribes and about 37,000 Indian mineral owners represented 100% of the revenues received from energy and mineral production activities on Indian lands. Tribes use these revenues to develop infrastructure, provide healthcare and education, and support other community development programs such as senior centers, public safety projects, and youth initiatives.
In evaluating the overall impact of energy development on public lands, the Interior Department released an economic impact report for fiscal year 2018. From the report, oil and gas produced from department-managed public lands and waters supported an estimated $85.4 billion in value added, $139 billion in economic output, and 607,000 jobs.
All federal, non-renewable energy revenues are collected, accounted for, analyzed, audited, and disbursed by the Office of Natural Resources Revenue from energy and mineral leases and other money owed for the use of public resources on the U.S. Outer Continental Shelf and onshore federal and Indian lands. All production, revenue, and disbursement data are available on the Natural Resources Revenue Data portal at revenuedata.doi.gov.
(SOURCE: The Weekly Propane Newsletter, March 12, 2020)
On American Indian-owned land, 2019 oil production rose to 92.26 MMbbl, marking an advance of more than 52% compared to 2016. “The Trump administration continues to appropriately develop our natural resources and be great stewards of conservation, benefiting all Americans,” said Secretary of the Interior David Bernhardt. “Disbursements paid to states and tribes from oil lease revenues go right back to the communities where the energy was produced, providing critical funds 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. The executive orders have served as a blueprint for the Interior Department, driving the implementation of common sense regulatory changes and improved internal processes to more efficiently issue permits. These actions have helped propel secure and reliable American energy development on public lands and waters in a responsible manner—a prerequisite to a safer and more prosperous America and a boon to American conservation.
Royalty revenues collected in 2019 from oil production on Interior-managed lands increased 21% year over year to $7.5 billion, sustaining a successful upward trend for the Trump administration. Revenues from producing oil leases rose by $1.3 billion compared to 2018 and were 122% higher than at the end of the prior administration in 2016.
Often the second-largest generator of federal income following taxes, energy revenue disbursements are a critical source of funding to states, 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 tribal-owned lands and offshore areas, total revenues collected last year increased by 31% to about $12 billion, nearly double that of 2016 revenues.
The more than $1 billion disbursed to tribes and individual Indian mineral owners was more than double that paid in 2016. The revenues disbursed to the 33 federally recognized tribes and about 37,000 Indian mineral owners represented 100% of the revenues received from energy and mineral production activities on Indian lands. Tribes use these revenues to develop infrastructure, provide healthcare and education, and support other community development programs such as senior centers, public safety projects, and youth initiatives.
In evaluating the overall impact of energy development on public lands, the Interior Department released an economic impact report for fiscal year 2018. From the report, oil and gas produced from department-managed public lands and waters supported an estimated $85.4 billion in value added, $139 billion in economic output, and 607,000 jobs.
All federal, non-renewable energy revenues are collected, accounted for, analyzed, audited, and disbursed by the Office of Natural Resources Revenue from energy and mineral leases and other money owed for the use of public resources on the U.S. Outer Continental Shelf and onshore federal and Indian lands. All production, revenue, and disbursement data are available on the Natural Resources Revenue Data portal at revenuedata.doi.gov.
(SOURCE: The Weekly Propane Newsletter, March 12, 2020)
