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Oil and Gas: Onshore Competitive and Noncompetitive Lease Revenues

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Report Type Reports and Testimonies
Report Date Nov. 19, 2020
Release Date Dec. 9, 2020
Report No. GAO-21-138
Summary:

Federal onshore oil and gas leases generate about $3 billion a year in federal revenues. Leases are sold in competitive auctions. If there aren't adequate bids in an auction, leases can be sold noncompetitively.

Our analysis of 100,300 leases in 2003-2019 found:

Competitive leases averaged nearly 3 times greater revenues than noncompetitive leases

About 72,800 competitive leases produced $14.3 billion in revenue

Leases that sold for at least $100 an acre generated 3 times the royalties of all other leases combined during their first 10 years.

Management of federal oil and gas resources remains an issue on our High Risk List.

Tan colored oil drill with cloudy blue sky in background.

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