Revenue from energy production on U.S. public lands and waters fell 11% in the latest fiscal year to $14.61 billion, the Interior Department said on Monday, citing lower prices for commodities like oil.
WHY IT’S IMPORTANT
The total was the lowest since 2021, the first year of the administration of U.S. President Joe Biden, but was the fifth highest year since 1982.
President Donald Trump has vowed to boost energy production on federal lands and waters, as part of his energy dominance agenda, while keeping costs low for consumers.
BY THE NUMBERS
The U.S. disbursed $14.61 billion from energy production on federal and tribal lands and from offshore areas, the Interior Department said, down from $16.45 billion in fiscal 2024. The federal fiscal year ends in September.
The U.S. Treasury Department received $5.01 billion, while states received $4.07 billion.
New Mexico received $2.76 billion, far more than any other state. Tribes and individual Indian mineral owners received $1 billion.
The agency did not release annual production data.
KEY CONTEXT
U.S. crude oil prices are down about 20% this year. The U.S. government collects revenues from energy companies that drill or mine on federal lands through royalties, rents and other fees.
Trump’s One Big Beautiful Bill Act, which was signed into law in July, reduced royalty rates on federal onshore oil and gas production to 12.5% from the 16.67% that Congress imposed during the Biden administration.
The Trump tax bill also reduced royalty rates on coal mining and offshore oil and gas production.
(Reporting by Nichola Groom; Editing by Daniel Wallis)