New Mexico Leads in Oil & Gas Activity on Federal Land
New Mexico Leads in Oil & Gas Activity on Federal Land
United States Bureau Land Management (BLM) released a report that oil production and revenue peaked across western states with New Mexico and Wyoming in the top spots. The BLM was able to generate record-breaking lease sales and production with less acreage. In 2018, $214.1 million barrels were produced on 25.5 million acres. Compared to 1985, 120.6 million acres were under-lease. The United States raised $1.1 billion through onshore oil and gas lease sales but on less land in more than 30 years. The revenue dollars came from 28 lease sales of BLM-owned federal land in western states.The Reasons Behind David Bernhardt, U.S. Secretary of the Interior, states the reason behind less acreage used than ever before was due to advances in technology in unconventional drilling methods – hydraulic fracturing and horizontal drilling. Oil and gas experts estimate that one unconventional well could account for 20 conventional wells. These technologies and infrastructure efficiencies have been the catalyst for the American energy renaissance. Due to fruitful production, the United States has been able to create more jobs and deliver low-cost fuel to consumers.Granular Look at Activity and Growth (2016 vs. 2018)The BLM worked to streamline internal permitting processes to cut down the permit drilling application (APD) processing time by more than 30%. Automated processes were introduced to the ADP review process while also providing greater transparency and regulatory certainty to stakeholders. Due to these two changes, permits grew while wait time decreased.
Drilling permits grew from 2,184 to 3,388 (+55% growth)
APD permit processing time was 257 days wait time now to 176 days (-30% decrease)
There have been YoY growth on leases and field expressions of interest.
24,028 leases and bids on 1.5 million acres vs. 792,823 acres in 2016 (+87% growth)
Filed expressions of interest of acreage grew 11%
Two States Take the LeadNew Mexico and Wyoming accounted for two-thirds of the new permit drilling applications (APD) and well activity, according to BLM. New Mexico has been booming with production in the Permian Basin. New Mexico reported 1,198 APDs approved, and 636 wells were created in 2018. Wyoming also saw year over year growth in regards to permits and well spudding, but not as high as New Mexico. New Mexico still is developing untapped resources and improving processes. With new efficient administrative procedures and technology, the oil and gas industry will continue to see more development and revenue generated from fruitful land.
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