Quote:
Originally Posted by
reefraff http:///t/397608/benghazi-its-baaa-aaack/40#post_3544993
This is how bad it is
Number of drilling permits issued on federal lands in 2008: 6617. Number issued in 2013: 3770........ Says it all.
http://www.blm.gov/pgdata/etc/medialib/blm/wo/MINERALS__REALTY__AND_RESOURCE_PROTECTION_/energy/oil___gas_statistics/data_sets.Par.65795.File.dat/numberofapdsapproved.pdf
While the current Administration processed more APDs than it received from 2009-2011, it
received far fewer applications over that period than the previous Administration had received
from 2006-2008. Even though the number of pending applications has fallen steadily since 2008,
the ratio of APDs pending to APDs processed was higher than during the period 2006-2008. In
addition, there are 7,000 approved APDs that are not in the exploration or production stages
(approved but not drilled). The BLM expected to process more than 5,000 APDs in each of the
fiscal years 2012 and 2013.
Concerns over Non-Producing Leases
A number of concerns may arise in the oil and gas leasing process that could delay or prevent oil
and gas development from taking place, or might account for the relatively large number of leases
held in non-producing status. It should be noted that many leases expire without exploration or
production ever occurring.
Below is a list of often-cited issues which, individually or in combination, are used to explain
why more leases are not producing.
•Rig or equipment availability, particularly offshore;
•High capital costs and available capital;
•Skilled labor shortages; an>
•Leases in the development cycle (e.g., conducting environmental reviews,
permitting, or exploring) but not producing;
•Legal challenges that might delay or prevent development;
•No commercial discovery on a lease tract;
•Holding leases (because of the lack of capital or as “speculators”) to sell or “farm
out” at a later date;
•Ability to secure extensions on non-producing leases;
•Securing and being able to hold large number of lease tracts, often contiguous, to
maximize return on their investment; and
•The potential for inadequate coordination between the Department of the
********’s lease management and regulatory agencies (Bureau of Ocean Energy
Management and Bureau of Safety and Environmental Enforcement) and other
Currently, there are 113 million acres of onshore federal lands open and accessible for oil and gas
10 development and about 166 million acres off-limits or inaccessible. The Bureau of Land
7 Annual Energy Outlook EIA, Early Release Overview, 2014, , December 2013.
8 Ibid.
9 2013 data from BLM was not available at the time of this writing.
10 Inventory of Onshore Federal Oil and Natural Gas Resources U.S. Depts. of the ********, Agriculture, and Energy,
and Restrictions to Their Development (Phase III), May 2008, available on the BLM website at http://www.blm.gov/
wo/st/en/prog/energy/oil_and_gas/EPCA_III.html.
The availability of public lands for oil and gas leasing can be divided into three categories: lands open under standard
lease terms, open to leasing with restrictions, and closed to leasing. Areas are closed to leasing pursuant to land
(continued...)
Congressional Research Service 5
U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas
Management (BLM) is seeking to lease in areas where it anticipates fewer legal challenges; BLM
also says it is addressing public concerns prior to a lease sale at a higher rate than in the past. In
2012, 56% of the onshore acreage under federal lease and 45% of federal onshore leases were not
in production. Offshore, most of the 1.7 billion acres of federal water are no longer under leasing
and development moratoria. The current five-year leasing program has lease sales scheduled in
11 Western and Central Gulf of Mexico (GOM) and parts of Alaska. In the offshore areas, 72% of
the acreage is leased and 75% of the leases are not in production.
According to the BLM and the Bureau of Ocean Energy Management (BOEM), there are
approximately 72.8 million acres of oil and gas leases in federal areas (onshore and offshore).
About 37.0 million acres are located onshore and an additional 35.8 million acres are offshore.
Approximately 11.1 million federal acres onshore an
r>
Onshore Offshore
Acreage under lease 37.0 million acres 35.8 million acres
Acreage with approved exploration or development plan 16.3 million acres 10.1 million acres
(i.e., acreage in production or exploration)
Leased acres producing 11.1 million acres 6.6 million acres
Leased acres not in production or exploration 20.8 million acres 25.7 million acres
Number of Leases 49,213 6,621 27,3001,611 Producing Leases (or with approved DOCD)
