Wednesday, March 13, 2013

Under Obama, Oil And Gas Production On Federal Lands Fell, 23 And 33 Percent, While Production On Private And State Lands Increased 22 And 40 Percent

Posted by Milton Recht:

From The Wall Street Journal, "Drill, Barack, Drill: A new study shows the U.S. oil boom is all on private and state land:"
President Obama does a neat John D. Rockefeller imitation these days, taking credit for soaring domestic oil and gas production as if he planned it that way. Not quite. As a new Congressional Research Service (CRS) reports shows, "All of the increased [oil] production from 2007 to 2012 took place on non-federal lands."

The research outfit reports that thanks to the innovation of hydraulic fracturing and horizontal drilling on private and state lands, the U.S. in fiscal 2012 produced 6.2 million barrels of oil daily, up from 5.1 million barrels as recently as fiscal 2007. Private industry's technological advances, operating under state regulation, increased U.S. production last year at the fastest rate in the history of the domestic industry, which drilled its first commercial well in 1859.

The story on federal lands is the opposite. The CRS study finds that federal oil production fell more than 23% from fiscal 2010 to fiscal 2012 and is today below what it was in 2007. The federal share of total U.S. oil production has slid under Mr. Obama to 26% in fiscal 2012 from 31% in fiscal 2008.

The story is the same in natural gas, with overall production climbing 20% since fiscal 2007 even as "production on federal lands has remained static or declined each year over the same period." Production on non-federal lands grew 40% since 2007, while production on federal lands fell by a hard-to-believe 33%. The federal share of total natural gas production in 2007 was 27.8%. Today it's 15.5%.

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