Analysis & Projections

Sales of Fossil Fuels Produced from Federal and Indian Lands, FY 2003 through FY 2012

Release date: May 30, 2013


Summary

The U.S. Energy Information Administration (EIA) estimates that sales of fossil fuels from production on federal lands decreased by 4 percent during fiscal year1 (FY) 2012. For the same period, EIA estimates that sales of fossil fuel from production on Indian lands were nearly unchanged.

EIA's estimates are based on data provided by the Department of the Interior's (DOI) Office of Natural Resources Revenue (ONRR) and include sales from federal onshore and offshore lands, and from Indian lands.2 EIA summarizes total sales of fossil fuels produced on federal and Indian lands in common energy units (British thermal units, or Btus) to allow for aggregation across fuels including crude oil and lease condensate, natural gas, natural gas plant liquids (NGPL), and coal (Tables 1-A and 1-B). The data presented in this paper updates data previously reported by EIA3 for FY 2003 through FY 2011.

Sales from production on federal lands

The 4-percent decrease of fossil fuels sales from production on federal lands in FY 2012 (Table 1-A) was largely driven by declines in offshore oil and natural gas production and onshore coal production. In particular:

  • Sales of crude oil4 from federal lands decreased 5 percent to 596 million barrels in FY 2012. An 8-percent decrease in federal offshore volumes was partially offset by an 8-percent increase in the much smaller federal onshore volumes (Table 2). Onshore crude oil production increases came mainly from New Mexico and North Dakota. Crude oil and lease condensate production on federal lands dropped to 26 percent of total U.S. production in FY 2012, down from 31 percent in FY 2011. In contrast, total U.S. crude oil production (from public and private lands) increased by 15 percent because of rapid growth in production of tight oil from resources on private lands.5
  • Sales of natural gas from federal lands decreased 7 percent in FY 2012 to 4,262 billion cubic feet, with offshore volumes down 19 percent and onshore volumes virtually unchanged (Table 3). Onshore federal natural gas production increases in Wyoming and New Mexico offset decreases in Texas, Utah, Colorado, and other states. Natural gas production on federal lands dropped to 18 percent of the U.S. total in FY 2012, down from 20 percent in FY 2011 (Table 1-A).
  • Sales of NGPL produced on federal lands decreased by 4 percent to 114 million barrels in FY 2012, following a 2-percent drop in FY 2011 from the level in FY 2010, which was the peak year of NGPL production over the FY 2003-FY 2012 period covered by this report (Table 4). An increase of nearly 3 percent in federal onshore volumes, consistent with industry efforts to maximize recovery from liquids-rich areas, was more than offset by a 14-percent decrease in offshore volumes in FY 2012.
  • Coal sales from production on federal lands decreased by 1 percent to 442 million short tons in FY 2012, contributing to a 8-percent decrease since its peak in FY 2008 (Table 5). Sales of coal produced on federal lands accounted for almost 42 percent of the U.S. total in FY 2012, up from 41 percent in FY 2011.

Sales from production on Indian lands

Total fossil fuels sales from production on Indian lands were virtually unchanged in FY 2012 (Table 1-B), but there were offsetting changes in the individual fuels:

  • Sales of crude oil produced on Indian lands increased 56 percent to 31 million barrels in FY 2012 (Table 2), reaching the highest recorded level over the period for which data are available (FY 2003-FY 2012). Almost all of the FY 2012 increase came from North Dakota and, to a lesser extent, Utah.
  • Sales of natural gas from Indian lands decreased by 1 percent to 251 billion cubic feet in FY 2012 (Table 3).
  • Sales of natural gas plant liquids (NGPL) produced on Indian lands increased by 11 percent in FY 2012 to 4 million barrels (Table 4).
  • Sales of coal from production on Indian lands dropped 14 percent to 19 million short tons in FY 2012 (Table 5).

DOI program offices continually collect sales and royalty payment data on fossil fuel sales of production from federal and Indian lands. Around February of each year, ONRR reports sales data as it is collected. Sales are assigned to the fiscal year in which they occur, not necessarily the same year royalties were collected. Audits conducted by ONRR result in revisions to data previously reported.

This report is based on information reported to and processed by ONRR as of March 15, 2013. The recently updated data provided by ONRR for FY 2003 through FY 2011 generally fall within 2 percent of the volumes EIA reported previously, with some exceptions. The largest percentage revisions were 18 percent and 16 percent increases in federal onshore NGPL sales from production in FY 2010 and FY 2011, respectively. Non-revenue volumes,6 which only occur from production on the federal offshore, had revisions ranging from -11 percent to 14 percent in FY 2010 and FY 2011 for natural gas and NGPL and an upward revision of 12 percent for crude oil in FY 2009.

Additional data, background information, and discussions of methodology and key drivers contributing to trends in sales from production on federal lands during the FY 2003 through FY 2011 period are available in the earlier EIA report and on the ONRR website.7

Table 1-A. Fossil fuel sales of production from federal lands, FY 2003 — FY 2012
Fiscal
year
Crude oil and lease condensate Natural gas plant liquids2 Natural gas Coal Fossil fuels
  million barrels1 trillion Btu percent of U.S. total million barrels1 trillion Btu percent of U.S. total billion cubic feet1 trillion Btu percent of U.S. total million short tons1 trillion Btu percent of U.S. total trillion Btu percent of U.S. total
2003 679 3,940 33.0% 93 346 14.7% 6,799 6,982 35.7% 436 8,960 40.6% 20,229 36.1%
2004 670 3,884 33.3% 104 386 15.7% 6.374 6,543 34.0% 451 9,226 41.0% 20,040 35.8%
2005 638 3,698 32.8% 96 358 14.7% 6,054 6,221 33.1% 447 9,110 39.6% 19,388 34.8%
2006 571 3,314 31.3% 85 317 13.9% 5,372 5,523 29.6% 429 8,715 37.2% 17,869 32.4%
2007 618 3,586 33.3% 105 387 16.3% 5,559 5,711 29.2% 443 9,017 38.6% 18,700 33.3%
2008 565 3,278 30.7% 104 385 15.6% 5,545 5,695 27.7% 483 9,771 41.6% 19,128 33.3%
2009 647 3,752 33.9% 92 339 13.6% 5,393 5,531 26.2% 462 9,260 41.5% 18,881 33.0%
2010 723 4,192 36.4% 121 445 16.3% 5,088 5,208 24.4% 456 9,177 42.7% 19,022 33.2%
2011 629 3,650 31.0% 119 437 15.1% 4,584 4,686 20.4% 447 9,016 41.1% 17,789 29.8%
2012 596 3,455 26.2% 114 420 13.2% 4,262 4,356 17.8% 442 8,898 42.1% 17,129 27.6%

1Includes sales volumes for production from federal lands including all classes of land owned by the federal government, including acquired military, Outer Continental Shelf, and public lands.
2Includes only those quantities for which the royalties were paid on the basis of the value of the natural gas plant liquids produced. Additional quantities of natural gas plant liquids were produced; however, the royalties paid were based on the value of natural gas processed. These latter quantities are included with natural gas.

Note: Total fossil fuels equals the sum of crude oil and lease condensate, natural gas plant liquids, natural gas, and coal. In addition, the sales volumes are reported for the fiscal year in which the sales occurred as opposed to the date of the royalty payment. Volumes include fossil fuels for which royalties were paid, as well as those amounts exempt from royalty payments, such as additions to the Strategic Petroleum Reserve.
Sources:  Physical Data:  U.S. Department of the Interior, Office of Natural Resources Revenue, "ONRR Statistical Information Site" (http://statistics.onrr.gov).
Btu Data:  U.S. Energy Information Administration. Btu are calculated using average, calendar-year heat rates for production of each fossil fuel, as reported in the Monthly Energy Review (April 2013). The total Btu-content per fossil fuel is calculated by multiplying the physical data by the approximate heat content. The fossil fuel total is the sum of the total heat content for crude oil and lease condensate, natural gas plant liquids, natural gas, and coal.
Percent of Total:  Percentages are calculated by dividing sales of production from federal by total U.S. production, then multiplying by 100. Fiscal year values for total U.S. production are the sum of October-September values from the Monthly Energy Review (April 2013) and reflect EIA's current data updates.

Table 1-B. Fossil fuel sales of production from Indian lands, FY 2003 — FY 2012
Fiscal
year
Crude oil and lease condensate Natural gas plant liquids2 Natural gas Coal Fossil fuels
  million barrels1 trillion Btu percent of U.S. total million barrels1 trillion Btu percent of U.S. total billion cubic feet1 trillion Btu percent of U.S. total million short tons1 trillion Btu percent of U.S. total trillion Btu percent of U.S. total
2003 10 59 0.5% 2 6 0.3% 283 291 1.5% 30 616 2.8% 972 1.7%
2004 10 58 0.5% 2 7 0.3% 312 320 1.7% 33 667 3.0% 10,052 1.9%
2005 10 59 0.5% 2 7 0.3% 326 335 1.8% 34 698 3.0% 1,099 2.0%
2006 10 57 0.5% 2 7 0.3% 308 316 1.7% 29 593 2.5% 973 1.8%
2007 10 56 0.5% 3 10 0.4% 284 292 1.5% 27 558 2.4% 916 1.6%
2008 10 57 0.5% 3 11 0.4% 271 279 1.4% 26 527 2.2% 874 1.5%
2009 10 61 0.5% 3 10 0.4% 265 272 1.3% 26 521 2.3% 864 1.5%
2010 13 77 0.7% 3 11 0.4% 250 256 1.2% 22 435 2.0% 780 1.4%
2011 20 115 1.0% 3 12 0.4% 253 259 1.1% 22 444 2.0% 830 1.4%
2012 31 179 1.4% 4 14 0.4% 251 256 1.0% 19 382 1.8% 831 1.3%

1Includes sales volumes for production from Indian lands.
2Includes only those quantities for which the royalties were paid on the basis of the value of the natural gas plant liquids produced. Additional quantities of natural gas plant liquids were produced; however, the royalties paid were based on the value of natural gas processed. These latter quantities are included with natural gas.

Note: Total fossil fuels equals the sum of crude oil and lease condensate, natural gas plant liquids, natural gas, and coal. In addition, the sales volumes are reported for the fiscal year in which the sales occurred as opposed to the date of the royalty payment. Volumes include fossil fuels for which royalties were paid, as well as those amounts exempt from royalty payments, such as additions to the Strategic Petroleum Reserve.
Sources:  Physical Data:  U.S. Department of the Interior, Office of Natural Resources Revenue, "ONRR Statistical Information Site" (http://statistics.onrr.gov).
Btu Data:  U.S. Energy Information Administration. Btu are calculated using average, calendar-year heat rates for production of each fossil fuel, as reported in the Monthly Energy Review (April 2013). The total Btu-content per fossil fuel is calculated by multiplying the physical data by the approximate heat content. The fossil fuel total is the sum of the total heat content for crude oil and lease condensate, natural gas plant liquids, natural gas, and coal.
Percent of Total:  Percentages are calculated by dividing sales of production from federal by total U.S. production, then multiplying by 100. Fiscal year values for total U.S. production are the sum of October-September values from the Monthly Energy Review (April 2013) and reflect EIA's current data updates.

See full report


Footnotes

1The U.S. government's fiscal year runs from October 1 through September 30. The fiscal year is designated by the calendar year in which it ends.

2Includes offshore and onshore areas the federal government owns or administers, including American Indian lands.

3Sales of Fossil Fuels Produced from Federal and Indian Lands, FY 2003 through FY 2011, EIA, March 2012, found at http://www.eia.gov/analysis/requests/federallands/archive/2012/pdf/eia-federallandsales-031412.pdf

4Includes lease condensate.

5http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_a.htm

6Non-revenue volumes are sales volumes reported where no royalty is due. This type of reporting is for specific programs that are authorized by statute. See http://statistics.onrr.gov/PDF/FAQs.pdf.

7http://statistics.onrr.gov/