The American Petroleum Institute (API) along with 13 energy trade associations have requested the Biden administration develop “fair and consistent federal leasing regulations” for onshore natural gas and oil development.
Comments were submitted to the Department of the Interior’s Bureau of Land Management (BLM).
“Our nation and the world will continue to need reliable, affordable oil and natural gas to grow our economy, power our communities and serve as the foundation for broader opportunities for decades to come. Oil and natural gas production on public lands is a crucial part of the nation’s program for energy security and economic strength,” said API vice president of Upstream Policy Holly Hopkins. “Because of the vital importance of energy production on public lands, overreaching land management regulations place our domestic energy supply at risk.”
The associations raised concerns that a proposed leasing rule would enable BLM to constrain onshore energy development on a case-by-case basis while ignoring existing environmental and planning practices in place.
BLM says the rule would be the “first comprehensive update to the federal onshore oil and gas regulatory framework in decades.” A final rule is expected in the spring of 2024.
Earlier in September, the Biden administration canceled the seven remaining oil and natural gas leases in the National Petroleum Reserve in Alaska noting there was insufficient analysis of the acreage in question.
API highlighted that onshore federal oil and natural gas development supported nearly 250,000 jobs, generated $19.4 billion in labor income, and contributed $36.7 billion to gross domestic product in 2022.
Oil production on federal lands averaged 1.2 million b/d and marketed natural gas production averaged over 9 Bcf/d in 2022.
Between 2013 and 2022, oil and natural gas production on federal lands generated $35 billion in disbursement revenue from bonuses, rents, and royalties, averaging approximately $3.6 billion/year, API said.
Signatories on the comments included API, Alaska Oil and Gas Association, American Exploration and Production Council, Colorado Oil & Gas Association, West Slope Colorado Oil and Gas Association, Independent Petroleum Association of America, Montana Petroleum Association, New Mexico Oil and Gas Association, North Dakota Petroleum Council, Petroleum Alliance of Oklahoma, Permian Basin Petroleum Association, Utah Petroleum Association, Western States Petroleum Alliance, and Petroleum Alliance of Wyoming.
