Revenues from oil and natural gas leases on onshore federal lands totaled $8.497 billion in 2023, according to a new Congressional Research Service (CRS) report. In fact, oil and natural gas leasing represents a whopping 93 percent of the total federal revenue from all leasable minerals and geothermal on onshore federal lands.
In the past ten years, these revenues have consistently increased, exemplifying the ongoing, strong contributions the industry provides to the United States:
Source: Department of the Interior (DOI), Office of Natural Resources Revenue (ONRR)
The report comes on the heels of a major shift in federal support for oil and gas development on federal lands, with the Trump Administration making significant strides to streamline permitting and increase federal development.
Revenues and Disbursements Support Local Economies and Communities
CRS’s report opens with a simple but powerful line: “Federal revenues from oil and natural gas production on federal lands support a range of federal and state programs and activities.” Let’s look at how much money is being contributed to these impactful programs.
With forty percent of revenues arising from oil and gas leasing on federal lands, except in Alaska, directly deposited into the Reclamation Fund, the revenues are used to support essential infrastructure across the United States, including irrigation and hydropower projects.
Fifty percent of revenues from onshore federal oil and gas leases are disbursed to the state where the lease is located, besides Alaska which gets 90 percent. These funds support state and local governments, as well as education and other programs.
These benefits are on top of federal oil and gas development supporting thousands of jobs in energy-producing states. According to an analysis from the American Petroleum Institute (API), in fiscal year 2022, federal oil and gas development in the five highest energy-producing states supported more than 170,000 jobs in those states, as well as 75,500 jobs in other states. Specifically, the industry provided:
- New Mexico: 105,300 jobs
- Wyoming: 24,400 jobs
- Colorado: 21,000 jobs
- Utah: 11,200 jobs
- North Dakota: 10,000 jobs
Onshore and Offshore Sales
In their memo outlining legislative priorities for the incoming Trump Administration, the Independent Petroleum Association of America (IPAA) emphasized why robust onshore and offshore lease sales are essential:
“Oil and natural gas production on federal lands and waters provides huge economic benefits to the United States in terms of jobs, royalties to the U.S. Treasury and economic benefits to states and local communities…IPAA encourages the Trump Administration to take these actions on the following regulations and orders governing onshore and offshore federal lands.”
As the CRS report outlines, the Bureau of Land Management (BLM), underneath the Department of the Interior (DOI), controls oil and gas leasing regulations, giving the Department immense power over America’s ability to meet energy demand. As API emphasized in a statement regarding the BLM:
“As energy demand continues to grow, oil and natural gas development on federal lands will be foundational for maintaining energy security, powering our economy and supporting state and local conservation efforts. Overly burdensome land management regulations will put this critical energy supply at risk.”
Luckily for American consumers looking to have affordable, reliable energy, the Trump Administration’s DOI has already generated over $39 million in oil and gas leases in Q1 of 2025. The lease sales reflect the administration’s goal of unleashing domestic energy production. Consistent, fair lease sales will allow oil and gas development to grow on federal lands and continue to provide widespread benefits to Americans.
As Department of the Interior Secretary Doug Burgum highlighted:
“This quarter’s lease sales demonstrate Interior’s unwavering commitment to fostering American Energy Dominance, and we are grateful to those who produce energy on federal lands. By building on the commonsense, pro-growth policies of the Trump administration, we’re ensuring public lands are being used to their fullest potential to support national security, economic strength and livelihood of the American people.”
Bottom line: CRS’s new report shows in concrete numbers the widespread, immense economic impact oil and gas development on onshore federal lands provides at the federal, state, and local levels.
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