U.S. Oil Production From Onshore Federal Leases

The Lea & Eddy Show

U.S. Oil Production From Onshore Federal Leases
Photo by WORKSITE Ltd. / Unsplash
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Department of Interior ("DOI") datasets are utilized to highlight oil production from Federal leases

Fiscal year 2022 - ending September 30th - county-level data has been released, whereas calendar year 2022 will be released in May

The data continues to highlight the U.S. Federal lease oil story is primarily a two-county story

Combined, Lea and Eddy Counties in New Mexico have grown at 23.5% since 2015

All other counties have grown at 1.7% since 2015 and these same combined counties only grew at a 3.3% CAGR since 2003

U.S. Energy policy needs to be realistic, not ideology-driven

20 years of data suggests onshore Federal leasing cannot add material barrels to U.S. production totals outside limited areas

U.S. Oil Production Concentration

Lea County, New Mexico produced 503,000 barrels of oil per day in fiscal 2022. Roosevelt County just to the north produced only 454 barrels per day.  Drilling for oil isn't shooting fish in a barrel.  

In fiscal year 2012, Lea and Eddy counties in New Mexico represented 31.7% of U.S. onshore oil production from Federal leases.  In 2022 that number rose to 71.8%.

U.S. oil production will be challenged to grow as Lea and Eddy growth slows.

All counties excluding Lea and Eddy were lower in 2022 versus 2021 and have only added 40,000 barrels per day since 2015.

Our series on this dataset will continue.