Lands

While crude oil production increased slightly, overall fossil fuel production on federal and Native American lands decreased by 7% in fiscal year 2013, according to a report released Friday by the U.S. Energy Information Administration (EIA). Natural gas and coal led the decline.

The U.S. Department of Interior’s Bureau of Land Management (BLM) on Tuesday signed off on Noble Energy Inc.’s plan to drill oil wells on extensive leases it holds in northeast Nevada in Tabor Flats.

With one-third of North Dakota’s growing oil and natural gas production coming from the Fort Berthold Reservation lands, state officials said Tuesday the U.S. Bureau of Land Management (BLM) has agreed informally that new anti-flaring rules would be enforced on the federally managed lands.

The Department of Interior’s Bureau of Land Management (BLM) hasn’t inspected some high-priority oil and natural gas wells due to budget constraints, according to an agency spokesman.

Baker Hughes Inc. said it plans to disclose 100% of the chemical ingredients it uses in hydraulic fracturing (fracking) fluids by providing “complete lists” of the products used, but there could be exemptions.

U.S. natural gas production from federal lands has declined substantially in recent years as producers have pursued shale gas plays, which typically are on non-federal lands. Meanwhile, the federal lands share of the nation’s crude oil production has also fallen as producers are drawn to more favorable geology and leasing practices on non-federal lands.

Wyoming Gov. Matt Meadhas namedBridget Hillas director of theOffice of State Lands and Investments, which is involved in, among other things, associated wellhead natural gas flaring and coalbed methane leases (seeDaily GPI,June 20, 2012). Hill, who was an attorney for the lands office for six years, replacesRyan Lance, who is moving to the private sector. The office supports the state’s Board of Land Commissioners and the Loan and Investment Board, which are composed of the top five elected officials, including Mead.

Production of oil and natural gas from non-federal lands has skyrocketed while that from federal lands has waned. At least today, the vast majority of shale acreage lies on state and private lands, the Energy Information Administration’ (EIA) Howard Gruenspecht, deputy administrator, said. It’s coal country that is mostly on the government’s property.

Apache Corp. on Thursday agreed to sell half a million net acres of natural gas- and oil-rich properties in Western Alberta to a privately held Canada producer for $214 million.