USGS: Fed Lands Hold 29.4 Billion Recoverable BBLs of Oil, 391.6 Tcf of Gas

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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--In its first such evaluation since the pre-shale revolution days of 1998, the U.S. Geological Survey (USGS) on June 20 released "An Estimate of Undiscovered, Technically Recoverable Oil and Gas Resources Underlying Federal Lands of the Onshore United States, 2025."

Compiling previously published reports that included 579 assessment units, subdivisions of the nation's 69 geologic provinces, the USGS found that formations under federal lands hold 29.4 billion barrels of oil, 391 trillion cubic feet (Tcf) of natural gas, and 8.4 billion barrels of natural gas liquids.

These amounts are much greater than 1998's numbers, which came in at 7.86 billion barrels of oil and 201.1 trillion cubic feet (Tcf) of gas. The change is massive because the earlier report did not include tight shale formations. While known then, they were not considered economically recoverable at that time. With the early 2000s' advent of hydraulic fracturing, known generally as the "shale revolution," that began to change.

Those recovery methods reversed decades-long (U.S. oil production had peaked in 1971, according to the U.S. Energy Information Administration) decline curves in older regions like the Permian Basin of Texas, and they opened new ones in North Dakota's Bakken, and south Texas's Eagle Ford, among others.

Where are the top opportunities? Alaska leads the list, because of the combination of great oil deposits and huge areas of Federally owned land, with 14,458.1 million barrels (MMBBL) of oil, 111,034.2 billion cubic feet (Bcf) of natural gas and 926.0 MMBBL of natural gas liquid (NGLs).

New Mexico, another state with the oil/federal lands combination, was second, with 8,925.8 MMBBL of oil, 85,393.7 Bcf natural gas and 3,916.5 MMBBL of NGLs.

Number three was Nevada, showing up with 1,407.3 MMBBL of oil, 1,186.5 Bcf natural gas and 46.4 MMBBL of NGLs.

Wyoming was fourth with 988.3 MMBBL of oil, 57,138.0 Bcf natural gas and 1,568.1 MMBBL of NGLs.

Texas, the nation's top producer, was fifth because there is little federal land there. Louisiana and Oklahoma, other significant producers, also ranked low on the list due to lack of federal lands.

North Dakota, home of the Bakken formation, showed 511.7 MMBBL of oil, 868.6 Bcf of natural gas and 66.0 MMBBL of NGLs. Sixteen states came in at zero.

"If produced," said the report, "that would be enough oil to supply all of the nation's needs for 4 years at the current rate of consumption, and enough natural gas to meet the nation's needs for nearly 12 years."

In January 2021--on his first day in office--then-President Joe Biden signed a 60-day executive order halting new leasing on federal lands in a move to reduce greenhouse gas emissions. That order faced a number of court challenges, and in spite of the order, the administration issued 3,557 permits for oil and gas drilling on public lands in 2021, according to records compiled by the Center for Biological Diversity, an ecological group.

In April 2022, due to an injunction by the appeals court in the Western District of Louisiana, the Bureau of Land Management (BLM) announced it would return to leasing.

And in September 2023, Biden cancelled oil leases in Alaska that had been issued by the first Trump administration. This June, the Trump administration announced it was reopening leasing in the National Petroleum Reserve Alaska, a 23-million-acre area that is separate from the also-contested Alaska Wildlife Reserve. Both areas have seen repeated leasing policy reversals as administrations have changed over the last 20 years.

Today Under Trump II
On May 13, the Bureau of Land Management (BLM) said it was "committing to faster lease parcel reviews by aiming to complete the entire process within six months," cutting lease times in half. This was part of Trump's overall goal of speeding permitting on a variety of energy and infrastructure projects.

Geoffrey S. Lakings, energy market strategist for Industrial Info, said the reopening of leasing is a step toward improving energy dependability. He noted out that recent power blackouts in the Iberian Peninsula, the Memorial Day rolling brownouts in the New Orleans area of MISO's (Midcontinent System Operator) domain, and other issues, mean the U.S. needs "an all-of-the-above energy approach. This includes everything from hydrocarbons to alternative technologies."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).