Production of crude oil from onshore federal lands has increased in recent years because of significant growth in drilling activity and operations. U.S. Energy Information Administration said Monday, “Most of this growth was in New Mexico from crude oil produced from federal lands in the Permian Basin.” According to data from Office of Natural Resources Revenue in U.S. Department of Interior, onshore crude oil production from federal lands reached a record high of 1.7 million b/d in 2024.
EIA attributed the increase in crude oil production from federal lands in New Mexico to multiyear increases in the number of leases, drilling permit approvals and well bore starts. According to data from Bureau of Land Management for fiscal years 2020 through 2023, activity in New Mexico accounted for a majority of drilling permits and well bores started on onshore federal lands.
Total U.S. crude oil production nearly tripled from 5.0 million b/d in 2008 to 13.2 million b/d in 2024, but production from onshore federal lands increased at a faster rate. The 2024 output of 1.7 million b/d is six times as much as production in 2008. OilPrice.com said, “The state has quietly become the epicenter of the federal onshore oil boom, combining geological riches with favorable permitting conditions and existing infrastructure.”
Natural gas production from onshore federal lands also increased in recent years, but at a similar rate to overall U.S. natural gas production.
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