Federal Revenue from Energy Production Declines

(Reuters) – Federal revenue from energy production on public lands and waters fell 10% in the latest fiscal year to $16.4 billion, the U.S. Interior Department reported on Friday.

Why It's Important

This total is the lowest since 2021, marking the first year of President Joe Biden's administration, though it remains the fourth highest revenue year since 1982.

Biden's administration has seen record domestic oil and gas production; however, it has also slowed new leasing on federal lands and adopted policies aimed at transitioning away from fossil fuels. In contrast, President-elect Donald Trump has promised to boost oil and gas production by easing regulations.

By the Numbers

The U.S. disbursed $16.45 billion to federal, state, local, and tribal governments from energy production for the year ending in September, down from $18.24 billion in fiscal 2023.

• Treasury received: $6.3 billion
• State and local governments received: $4.3 billion
• Top receiving states:
  • New Mexico: $2.88 billion
  • Wyoming: $590.9 million
  • Louisiana: $163.47 million

Revenue from natural gas production fell 62% to $1.1 billion due to softening prices, while oil revenue saw a slight increase of 4%.

A notable decline in new leasing was reflected in the revenue from winning bids, which slid 54% to $521 million.