Drill Baby Drill

Applications for permits to drill on federal and Indian lands have increased by more than 300% over the past two years with New Mexico and Wyoming receiving most of the attention in the Permian and Green River Overthrust basins, respectively, as producers target oil-rich basins.

US Secretary of the Interior David Bernhardt announced the Department of the Interior’s Office of Natural Resources Revenue disbursed $11.69 billion in the fiscal year 2019 from energy production on federal and American Indian-owned lands and offshore areas. This represents a $2.76 billion increase in comparison to the fiscal year 2018.

New Mexico proved to be the biggest benefactor of increased federal and Indian land activity. The average rig count in the state increased by 11 year over year from 95 to 106, according to data by Baker Hughes. New Mexico received the highest disbursement in the fiscal year 2019, and it is the greatest allocation received in the state’s history at $1.17 billion.

States received $2.44 billion in disbursements, and more than $1 billion was disbursed to American Indian tribes and individual Indian mineral owners.

LINK (via: S&P Global)

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