The US Bureau of Land Management issued 79% fewer leases for oil and natural gas development in six US Western states in fiscal year 2010 than it issued in FY 2005, according to data released Thursday by the Western Energy Alliance.
Revenue from federal leases in Colorado, Montana, New Mexico, North Dakota, Utah and Wyoming dropped 46% over the same period, WEA said in a statement.
The Alliance released the leasing information as part of its Western Oil and Natural Gas Dashboard, a compilation of federal government data related to oil and gas development on public lands in the West, posted on the WEA website.
The Dashboard "reveals a clear trend toward decreased access of the American people to oil and natural gas on public lands. This trend, if continued, will result in a decline in energy development with a resulting loss of jobs, and less revenue for federal and state treasuries at a time when Americans are very concerned about out-of-control deficits and spending," said Spencer Kimball, WEA manager of government affairs.
The data collected from BLM offices across the West shows that the agency issued 531 leases in FY 2010, a 79% drop from the 2,499 leases issued in FY 2005. In addition, since FY 2005, the BLM has offered 60% fewer parcels and 70% fewer acres for lease, the WEA said.
Other data reveal the impact of the decrease of leasing from five years ago. Federal leasing revenue from the six states dropped about 45%, to $101.6 million in FY 2010 from $189.6 million in FY 2005.
The WEA also reported that revenue from onshore federal royalties, rents and bonuses declined by one-third, to $2.8 billion between 2008 and 2010 from $4.2 billion.
Every dollar appropriated for BLM's onshore oil and gas management program generates over $40 in royalty, rent, and bonus revenue for the federal treasury, the data reveals.
The WEA also found the total number of leases in effect in the West has declined 52% since 1984, while the total acreage under lease declined 61% over the same period.
Leasing activity has slowed dramatically under the Obama administration, the WEA reports.
"In the first two years of the Obama administration, BLM issued 76% fewer acres than the first two years of the Clinton administration, and 71% fewer acres than the first two years of the Bush administration," the WEA said.
"In 2009, oil and natural gas development in the West provided $6.6 billion in direct government revenue, which is used for impacted communities, schools, conservation funds and other public benefits," the WEA said.
In tracking other notable trends in Western oil and gas development over time, the WEA found that the industry supports 488,000 jobs in the West, accounting for 8.1% of total regional employment. Oil and gas employees in the West earn more than $27 billion in annual labor income, accounting for 10.3% of total regional labor income.
These employees typically earn 86% more than the state average and 67% more than the US average.
Revenue from federal leases in Colorado, Montana, New Mexico, North Dakota, Utah and Wyoming dropped 46% over the same period, WEA said in a statement.
The Alliance released the leasing information as part of its Western Oil and Natural Gas Dashboard, a compilation of federal government data related to oil and gas development on public lands in the West, posted on the WEA website.
The Dashboard "reveals a clear trend toward decreased access of the American people to oil and natural gas on public lands. This trend, if continued, will result in a decline in energy development with a resulting loss of jobs, and less revenue for federal and state treasuries at a time when Americans are very concerned about out-of-control deficits and spending," said Spencer Kimball, WEA manager of government affairs.
The data collected from BLM offices across the West shows that the agency issued 531 leases in FY 2010, a 79% drop from the 2,499 leases issued in FY 2005. In addition, since FY 2005, the BLM has offered 60% fewer parcels and 70% fewer acres for lease, the WEA said.
Other data reveal the impact of the decrease of leasing from five years ago. Federal leasing revenue from the six states dropped about 45%, to $101.6 million in FY 2010 from $189.6 million in FY 2005.
The WEA also reported that revenue from onshore federal royalties, rents and bonuses declined by one-third, to $2.8 billion between 2008 and 2010 from $4.2 billion.
Every dollar appropriated for BLM's onshore oil and gas management program generates over $40 in royalty, rent, and bonus revenue for the federal treasury, the data reveals.
The WEA also found the total number of leases in effect in the West has declined 52% since 1984, while the total acreage under lease declined 61% over the same period.
Leasing activity has slowed dramatically under the Obama administration, the WEA reports.
"In the first two years of the Obama administration, BLM issued 76% fewer acres than the first two years of the Clinton administration, and 71% fewer acres than the first two years of the Bush administration," the WEA said.
"In 2009, oil and natural gas development in the West provided $6.6 billion in direct government revenue, which is used for impacted communities, schools, conservation funds and other public benefits," the WEA said.
In tracking other notable trends in Western oil and gas development over time, the WEA found that the industry supports 488,000 jobs in the West, accounting for 8.1% of total regional employment. Oil and gas employees in the West earn more than $27 billion in annual labor income, accounting for 10.3% of total regional labor income.
These employees typically earn 86% more than the state average and 67% more than the US average.
