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Energy Tomorrow Blog

Administration's Federal Leasing Policy Continues to Raise Flags

federal leases  us energy security  economic growth  interior department 

Olivia Culver

Olivia Culver
Posted April 6, 2021

The Biden administration’s pause in new natural gas and oil leasing on federal lands and waters continues to look like a hard sell, not only in energy-producing states but also with traditional Democratic allies in organized labor.

We’ve talked about potential negative effects of the administration’s policy on leasing and have warned against even greater impacts to the economy and American energy security if the pause becomes a permanent ban on federal leasing and development (see here, here and here). Projected impacts from a full-on ban on leasing and development in an analysis by OnLocation include approximately 1 million jobs could be lost – nearly 120,000 in Texas, more than 62,000 in New Mexico and more than 48,000 in Louisiana – foreign oil imports could increase 2 million barrels per day; and carbon dioxide emissions could increase 5.5%

Similar concerns surfaced as the U.S. Interior Department (DOI) held a forum on the federal oil and gas program. At the public session, Frank Macchiarola, API senior vice president of Policy, Economics and Regulatory Affairs, noted that federal lands and waters account for 22% of U.S. oil and 12% of U.S. natural gas production and urged DOI leaders to recognize the importance of this production to U.S. energy security, economic growth and continued environmental progress.

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Working with Biden Administration, Industry is Poised to Accelerate Progress

us energy security  epa  energy department  interior department 

Lem Smith

Lem Smith
Posted March 16, 2021

The natural gas and oil industry is committed to working with America’s energy stakeholders, including U.S. government regulators, to deliver affordable, reliable fuels and shape a lower-carbon future.

The Biden administration has taken office at a time when the U.S. leads the world in energy production and emissions reductions. The President’s nominees to oversee the Department of Energy, Department of the Interior and Environmental Protection Agency – Secretary Jennifer Granholm, Secretary Debra Haaland and Administrator Michael Regan, respectively – have signaled readiness to tackle the dual challenge of strengthening U.S. energy security and addressing the risks of climate change.

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In U.S. Rep. Haaland, There’s Common Ground for a Working Relationship

interior department  federal leases  infrastructure  us energy security 

Mark Green

Mark Green
Posted February 26, 2021

In introducing U.S. Rep. Debra Haaland – President Biden’s choice to be Interior Department secretary – to the Senate’s Energy and Natural Resources Committee, Congressman Don Young of Alaska, a staunch Republican, predicted this about his House colleague: “You’ll find out that she will listen to you.”

Given the political polarization in Washington, that’s pretty significant – and hugely important in building a bipartisan approach to energy, infrastructure and other issues associated with national economic growth, security and the environment.

The natural gas and oil industry welcomes the opportunity – if Rep. Haaland is confirmed by the full Senate – to work with her as her department manages millions of acres of federal lands and waters that are key to our country’s energy present and future.

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Natural Gas, Oil and Reinvestment in America

royalties  revenues  oil and natural gas production  interior department 

Mark Green

Mark Green
Posted October 28, 2019

America’s natural gas and oil industry continues to work for Americans – with revenues from production on federal and Native American-owned lands  and offshore areas driving $11.69 billion in federal disbursements back to the states, counties, tribes and reclamation and conservation programs. That’s $2.76 billion more than the previous fiscal year and nearly double the disbursements in FY2016, the Interior Department said.

Recipients included: $2.44 billion to states and counties, $1.76 billion to the reclamation fund, $1.14 billion to Native American tribes and individual mineral owners, $1 billion to the Land and Water Conservation Fund and $4.9 billion to the U.S. treasury.

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Advancing Safe Offshore Development

offshore development  ocs leasing plan  seismic survey  safe operations  interior department  spill 

Mark Green

Mark Green
Posted May 16, 2017

Last month’s presidential executive order aimed at increasing access to U.S. offshore natural gas and oil reserves is starting to bear fruit with two important developments from the Interior Department, which oversees access to federal offshore and onshore resources. … Both are welcome developments. America’s future energy security largely depends on safe development of offshore energy. Increasing access to offshore natural gas is critically important with 94 percent of federal offshore acreage currently off limits.

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Public Resources and the Public Good

analysis  oil and natural gas development  interior department  economic growth  access  offshore drilling  onshore drilling 

Mark Green

Mark Green
Posted June 25, 2015

The U.S. Interior Department is out with its Economic Report for Fiscal Year 2014 – which doesn’t sound like it would be a whole lot of fun reading. But the report actually contains some pretty important bits of information.

For example, you get a clear sense that Interior Department activities support jobs and economic growth, which are good things. Interior Secretary Sally Jewell called her department a “powerful economic engine.” More Jewell:

“Our parks and public lands support outdoor recreation, promote renewable energy and allow us to harness other domestic energy resources, create jobs and promote economic development in communities across all 50 states.”

It’s the “other domestic energy resources” that caught our eye.

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Look Forward, Not Backward, on Offshore Energy

analysis  offshore energy  offshore leasing plan  atlantic ocs  outer continental shelf  oil and natural gas development  safe operations  boem  interior department 

Mark Green

Mark Green
Posted April 30, 2015

It’s noteworthy that there’s bipartisanship in Congress on offshore energy development. Last week a group of Republican U.S. House and Senate members signed onto a letter urging the Interior Department to increase access to energy reserves on the nation’s outer continental shelf. It follows a March 26 letter from Virginia’s two Democratic senators and a March 27 letter from a dozen House Democrats supporting offshore energy development.

Bipartisanship in Washington is quite a rare bird, so it’s significant to see it form around the need to develop domestic offshore energy.

Equally important: Strongly worded concern from the most recent letter’s signers that the draft 2017-2022 plan for oil and natural gas leasing offered by the Bureau of Ocean Energy Management not be weakened by removing any of the leasing areas in the proposal.

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Offshore Energy and Virginia

offshore development  virginia offshore drilling  oil and natural gas access  job creation  government revenues  economic growth  interior department 

Mark Green

Mark Green
Posted February 11, 2015

With federal officials holding one in a series of public hearings on the Obama administration’s draft offshore oil and natural gas leasing program today in Norfolk, Va., it’s worth underscoring the benefits that offshore energy could bring to the commonwealth.

These include 25,000 jobs by 2035, according to a study by Quest Offshore Resources, and nearly $1.9 billion for the state’s budget by 2035, with revenue sharing in place.

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Access and Interior’s New Budget Request

access  interior department  onshore access  offshore access  federal lands  federal revenues  leasing  permitting 

Mark Green

Mark Green
Posted February 2, 2015

Taking a look at the president’s new budget request for the Interior Department, we see the administration asking for $13.2 billion, an increase of nearly $1 billion over the enacted funding level for the current fiscal year.

Now take a look at data from Interior’s Office of Natural Resource Revenue, which tabulates federal revenues from energy developed in federal areas onshore and offshore.

It’s a lot of information, but check the bottom line: For fiscal year 2013, revenues from oil and natural gas developed in federal areas totaled about $12.9 billion. For FY2014 the total was about $11.7 billion. Federal revenues from oil and natural gas development in FY2014 were about $1.2 billion less than in FY2013.

Interestingly, the amount of lost revenue is just about equal to Interior’s requested budget increase for FY2016. In other words, Interior lost $1.2 billion in revenue from 2013 to 2014 and basically is looking to taxpayers to fill in the gap in the next budget. 

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America’s Offshore Opportunity

oil and natural gas development  safe operations  leasing plan  offshore drilling  economic benefits  atlantic ocs  gulf of mexico  alaska  pacific outer continental shelf ocs  interior department  boem  federal leases 

Mark Green

Mark Green
Posted January 28, 2015

Three maps, two views of America’s offshore energy wealth.

One reflects vast offshore oil and natural gas resource potential – nearly 50 billion barrels of oil and more than 200 trillion cubic feet of natural gas. We say potential because these areas represent the 87 percent of America’s federal offshore acreage that has been closed to exploration and development, dwarfing the areas where development is allowed.    

Nonetheless, what’s visible is the profile of an offshore energy giant, an offshore superpower. This is energy muscle waiting to be flexed. These are resources that could benefit Americans in terms of energy security, as more oil and natural gas is safely and responsibly produced right here at home, as well as job creation and economic stimulus.

That’s what energy superpowers do. They develop their resources to increase their security in a world where secure energy is fundamental to overall security. They develop their resources to fuel economic growth and to help ensure the prosperity of their citizens.  

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