The federal government manages roughly 640 million acres of public land, primarily through the Bureau of Land Management, Forest Service, Fish and Wildlife Service, and National Park Service.
In fiscal year 2023, oil and gas production from federal lands and waters generated about $18 billion in revenue for the U.S. Treasury, states, and tribes, according to the Office of Natural Resources Revenue.
The Inflation Reduction Act of 2022 raised onshore federal royalty rates from 12.5% to 16.67% and increased minimum bid amounts for new leases.
Supporters of expanded leasing argue it lowers energy prices, strengthens national security, and funds conservation through royalty revenue; critics argue it accelerates greenhouse gas emissions and degrades wildlife habitat.
Federal oil and gas leasing is governed by the Mineral Leasing Act of 1920 and the Federal Land Policy and Management Act of 1976, which direct agencies to balance multiple uses including energy, recreation, grazing, and conservation.