Sitting Pretty: The numbers show that the oil and gas industry is flourishing on our federal lands, while sitting on thousands of unused drilling permits and tens of millions of acres of idle federal leases. Oil and gas development on our public lands managed by the Bureau of Land Management (BLM) is thriving. Levels of drilling and production are high, and oil and gas companies are currently holding thousands of unused drilling permits and tens of millions of acres of leased land that they are neither actively developing nor exploring for oil and gas resources. In fact, according to the BLM s records, in states like Wyoming and Colorado, natural gas production from the public lands attained record levels in Fiscal Year (FY) 2010. The industry inaccurately claims that it is burdened by environmental regulation and Big Oil s champions in Congress, such as Wyoming Senator Barrasso, seek to give away even more of our public land and natural resources. However, data from the federal government and the industry show that oil and gas leasing, drilling and production on the public (and private) lands as guided by existing law and policy, including the Interior Department s new leasing reforms is flourishing, so much so that the industry can hoard thousands of permits and tens of millions of acres of land that belong to all Americans. Highlights of nationwide leasing, drilling and production data show the oil and gas industry controlling more than 38 million acres of federal lands an area larger than Florida, Georgia, or Michigan. Yet, the industry is using far less than one half of these lands controlling 22 million acres of public lands that they are not using for oil and gas production. The oil and gas companies are also holding more than 6,500 idle drilling permits that the BLM has issued during the past few years. Even so, the number of drill rigs operating in the United States is back to pre recession levels and nearing a 20 year high. Leasing As of March 2011, the oil and gas industry held 38.6 million acres of leases on the public lands. However, it was not developing or exploring for oil and gas resources on 57 percent of its holdings (22 million acres). i Drilling As of July 15, 2011, there were 1,905 active rotary drill rigs in the U.S. ii This figure is 94 percent of the 20 year high of 2,021 active drill rigs set in 2008. iii As of May 2011, the oil and gas industry held 6,573 approved, but unused, permits for drilling on federal lands. iv Production In FY 2010, the oil and gas industry produced nearly 3 trillion cubic feet (TCF) of natural gas from federal onshore leases the second highest fiscal year total between FY 1984 and FY 2010. v
Overall, the oil and gas companies are not using a significant percentage of the federal lands that they have leased, but we all own. Similarly, the oil and gas industry is not using thousands of permits to drill that they have requested and the government has issued to them. vi 2
A look at state by state leasing, drilling and production data for the Intermountain West highlights record amounts of completed wells on federal lands in Colorado and Wyoming, high levels of producing leases in Montana, record or near record production levels in Colorado, New Mexico, Utah, and Wyoming the oil and gas industry continues to profit from the land they already have. COLORADO Leasing As of FY 2010, the oil and gas industry held 4.6 million acres of leases on public lands in Colorado; yet only 1.5 million acres were in production. vii As of March 2011, the oil and gas industry was producing from only 32 percent of its leased acreage. viii Drilling In FY 2010, the oil and gas industry received more drilling permits than any other fiscal year between FY 1985 2005. ix While the BLM issued 593 drilling permits in 2010, the oil and gas industry drilled only 175. x As of FY 2010, there were more than 6,100 completed wells on federal lands the most since BLM began keeping records. xi As of May 2011, the oil and gas industry held 571 approved, but unused, drilling permits. xii Production In FY 2010, the oil and gas industry produced over 279 million MCF of natural gas from public lands in Colorado the highest fiscal year total between FY 1984 and FY 2010. xiii MONTANA Leasing As of FY 2010, the oil and gas industry held 3.2 million acres of leases on public lands in Montana; only 762,000 acres were in production. xiv As of March 2011, the oil and gas industry was producing from only 24 percent of its leased acreage. xv As of May 2011, the oil and gas industry held 203 approved, but unused, drilling permits. xvi Production Even though the oil and gas industry is only producing from 24 percent of its leased acreage, FY 2008 through FY 2010 represent the highest numbers of producing leases on federal lands since FY 1987. xvii NEW MEXICO Leasing As of FY 2010, the oil and gas industry held 5.3 million acres of leases on public lands in New Mexico; yet just 3.7 million acres were in production. xviii As of March 2011, the oil and gas industry was producing from 69 percent of its leased acreage. xix As of May 2011, the oil and gas industry held 1,307 approved, but unused, drilling permits. xx Production In FY 2010, the oil and gas industry produced 29.9 million barrels of oil from public lands in New Mexico one of the highest fiscal year totals between FY 1984 and FY 2010. xxi 3
UTAH Leasing As of FY 2010, the oil and gas industry held 5 million acres of leases on public lands in Utah; only 1 million acres were in production. xxii As of March 2011, the oil and gas industry was producing from only 22 percent of its leased acreage. xxiii Drilling In 2010, the oil and gas industry drilled 975 wells more than any other year between FY 1985 and FY 2005. xxiv As of May 2011, the oil and gas industry held 775 approved, but unused, drilling permits. xxv Production In FY 2009 and FY 2010, the oil and gas industry produced approximately 286 and 271 million MCF of natural gas from public lands in Utah the highest fiscal year totals between FY 1984 2010. xxvi In FY 2010, the oil and gas industry produced 11.7 million barrels of oil from public lands in Utah the highest fiscal year total between FY 1984 and FY 2010. xxvii WYOMING Leasing As of FY 2010, the oil and gas industry held 12 million acres of leases on public lands in Wyoming; yet less than 4 million acres were in production. xxviii As of March 2011, the oil and gas industry was producing from only 33 percent of its leased acreage. xxix Drilling As of FY 2010, there were 32,000 completed wells on federal lands the highest total since BLM began keeping records. xxx While the BLM issued 1,538 drilling permits in 2010, the oil and gas industry drilled only 553. xxxi As of May 2011, the oil and gas industry held 3,528 approved, but unused, drilling permits. xxxii Production In FY 2010, the oil and gas industry produced over 1.6 billion MCF of natural gas from public lands in Wyoming the highest fiscal year total between FY 1984 and FY 2010. xxxiii Drilling rigs operating in the United States have actually increased since last year at this time, while oil and gas reforms issued by the Department of Interior in May 2010 were being implemented across the federal lands. 4
xxxiv The oil and gas industry does not need any more subsidies, exemptions from and shortcuts around environmental laws, or expedited processes for obtaining drilling permits on federal lands. What we do need to do is to assure that responsible oil and gas development only occurs in appropriate places, and in an environmentally safe manner. This industry is profiting from development of our public lands while not even using thousands of drilling permits approved by the BLM and is sitting on tens of millions of acres of public lands that belong to all of us. For more information contact: Nada Culver, (303) 650 5818 Ext. 117, or nada_culver@tws.org Dave Alberswerth, (202) 429 2695, or dave_alberswerth@tws.org Ti Hays, (303) 650 5818 Ext. 131, or ti_hays@tws.org i http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 ii http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm iii http://headwaterseconomics.org/wphw/wp content/uploads/rigcounts.pdf iv http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits v vi http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 vii http://www.blm.gov/wo/st/en/info/newsroom/energy_facts_07/statistics.html viii http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 ix http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.5146.file.da t/chart_2009_07.pdf x http://www.blm.gov/wo/st/en/info/newsroom/energy_facts_07/statistics.html xi http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.49077.file.d at/chart_2009_09.pdf xii http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits xiii xiv http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.0248.file.da t/chart_2009_06.pdf xv http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 xvi http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits xvii http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.69038.file.d at/chart_2009_05.pdf xviii http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.0248.file.da t/chart_2009_06.pdf xix http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 xx http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits xxi http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.10607.file.d at/chart_2009_11.pdf xxii http://www.blm.gov/wo/st/en/info/newsroom/energy_facts_07/statistics.html xxiii http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 5
xxiv http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.61104.file.d at/chart_2009_08.pdf xxv http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits xxvi xxvii xxviii http://www.blm.gov/wo/st/en/info/newsroom/energy_facts_07/statistics.html xxix http://www.doi.gov/news/pressreleases/loader.cfm?csmodule=security/getfile&pageid=239255 xxx http://www.blm.gov/pgdata/etc/medialib/blm/wo/minerals REALTY AND_RESOURCE_PROTECTION_/energy/oil gas_statistics.par.49077.file.d at/chart_2009_09.pdf xxxi http://www.blm.gov/wo/st/en/info/newsroom/energy_facts_07/statistics.html xxxii http://wilderness.org/content/shelf oil gas industry%e2%80%99s idle federal drilling permits xxxiii xxxiv Baker Hughes http://files.shareholder.com/downloads/bhi/1209284977x0x483015/e8433b88 FB53 42DB A528 C46C2692AB93/na_charts_071511.pdf 6