Production on Federal / Tribal Lands

Oil and Gas Production on Federal Lands

Through many statutes over more than a century, Congress designated that certain publicly-owned lands were to be made available for  productive uses, at present and in the future[1], equipping federal agencies with  authorities to ensure that “the[se] public lands be managed in a manner which recognizes the Nation’s need for domestic sources of minerals, food, timber, and fiber from the public lands” and receives a sustained yield[2] of fair market value for such uses.[3]  Today, oil and natural gas production on federal lands play a critical role in meeting America’s energy needs, supporting local economies, and ensuring energy security. We advocate for policies that promote responsible energy development on federal lands while safeguarding the environment and maximizing benefits for American communities.

[1] 43 U.S. Code § 1701
[2] 16 U.S.C.§ 528.
[3] 43 U.S. Code § 1701

A Vital Contribution to U.S. Energy Supply

Federal lands host for a significant portion of the nation’s onshore oil and natural gas production, contributing to economic growth and energy independence:

  • In 2023, operators on federal and tribal lands produced 617 million barrels of oil.
    • If oil produced on onshore federal lands were a “country,” it would be the 14th largest producer of oil in the world.
  • In 2023, operators on federal and tribal lands produced 4.22 trillion cubic feet of natural gas.
    • If natural gas produced on onshore federal lands were a “country,” it would be the 18th largest producer of natural gas in the world.

Commitment to Responsible Development and Conservation

AXPC members understand and promote the importance of ensuring positive environmental and public‐welfare outcomes and responsible stewardship of the nation’s natural resources. AXPC’s members are committed to being good stewards of federal and Indian resources, operating in compliance with all federal requirements. In particular, our members work hard every day to fulfill our obligation to prudently and responsibly develop oil and gas resources, balancing energy development with environmental protection.

Economic Benefits

Onshore energy production from federal lands generates substantial economic value at federal state and local levels, creating jobs, funding public programs, and supporting local communities:

  • $8+ Billion in Revenue (2023): Oil and gas leasing, royalties, and fees on federal lands generated over $8 billion for the U.S. Treasury, with nearly half shared with states and local governments. After taxes, oil and gas royalties are the second biggest source of revenue for the federal government.
  • Hundreds of Thousands of Jobs: The oil and gas industry supports more than 580,000 jobs directly and indirectly tied to federal land and water production.
  • Funding for Public Services: Royalties from energy production help fund infrastructure, education, and conservation programs at federal, state, and local levels.

 

Challenges and Opportunities

While federal lands offer immense potential for energy production, the industry faces unique challenges:

  • Regulatory Uncertainty: Lengthy permitting processes and shifting policies can delay projects, hindering production and economic benefits.
  • Infrastructure Constraints: Limited pipeline and transportation infrastructure can impact the efficient delivery of energy resources.
  • Opportunities for Modernization: Streamlining permitting and encouraging innovation to minimize environmental impacts while unlocking the full potential of federal lands to provide for the American people.

Advocating for Smart Policies

AXPC works with federal agencies, lawmakers, and stakeholders to promote policies that:

  • Support Energy Development: Ensure a fair and predictable regulatory environment that encourages investment and innovation.
  • Enhance Revenue Sharing: Advocate for equitable revenue sharing to maximize benefits for states and local communities.
  • Promote Environmental Stewardship: Advance science-based policies to protect federal lands and waters for future generations.

Recent Updates on Production on Federal / Tribal Lands

Click here for AXPC's latest statements and news on Production on Federal / Tribal Lands
04.01.26

AXPC Submits Comments Supporting BLM’s Swift Action to Broadly Expand Commingling Efforts on Federal Lands

April 1, 2026  Washington, D.C. – Yesterday, the American Exploration & Production Council (AXPC...
01.30.26

Interior’s Proposed Commingling Rule a Win-Win for Taxpayers and the Environment

January 30, 2026 Washington, D.C. – Today, American Exploration & Production Council (AXPC) CEO Anne ...
11.10.25

AXPC’s Comments on BLM’s Proposed Rescission of the CLH Rule

November 10, 2025

09.11.25

AXPC Applauds Interior Department’s Proposal to Rescind Burdensome Public Lands Rule, Expand Domestic Energy Production

September 11, 2025 Washington, D.C. – The American Exploration & Production Council (AXPC) today appl...
07.18.25

The One, Big, Beautiful Bill Act: Delivering Durable Reforms to Boost American Energy from Our Independent Producers  

July 18, 2025 The Independence Day enactment of the One, Big, Beautiful Bill Act (OBBBA) marked a new era...
06.11.25

AXPC Applauds the Senate Energy and Natural Resources Committee’s Historic Reconciliation Provisions  

June 11, 2025  Washington, D.C. – Today, the American Exploration & Production Council (AXPC) re...

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