Are Leaseholders Adequately Exploring for Oil and Gas on Federal Lands
EMD-82-82: Published: Aug 23, 1982. Publicly Released: Aug 23, 1982.
Additional Materials:
- Full Report:
Contact:
GAO reviewed the Federal onshore oil and gas leasing system to determine if leaseholders are adequately exploring their leases. Specific issues which were addressed included the extent and nature of activity of the two predominant leaseholders, industry and speculators, and the actions that may be needed to influence their activity.
The Federal onshore oil and gas leasing system has been widely criticized. Problems cited include a large-scale involvement of speculators, lack of requirements for active lease development, a lottery system that encourages abuse, and failure to achieve fair market value for the leases. In the four States reviewed, GAO found that only about 8 percent of the Federal leases were drilled. Industry oil and gas activity has been increasing substantially nationwide, but rig usage has been decreasing in 1982. Industry's drilling activity on Federal lands appears reasonable in relation to activity on non-Federal lands. GAO found that industry may be taking advantage of certain lease extension provisions, but that this is not a significant problem. Many individuals obtain leases, primarily through the lottery system, who may not have the inclination or ability to develop leases. A sample of lottery leases showed that apparent speculators originally held nearly 60 percent of the leases. These speculators prevent the leases from being issued directly to industry and may inhibit efficient development. Eliminating the speculator would not likely have any major adverse effect on development, but it might adversely effect revenues. GAO and the energy industry identified other factors which may delay or inhibit development. The effect on production and revenues of attempts to eliminate the speculator is so uncertain that such attempts should be approached with caution.
Apr 18, 2018
-
Gas Pipeline Safety:
Stakeholders' and Officials' Views on Federal Odorizing RequirementsGAO-18-409: Published: Apr 18, 2018. Publicly Released: Apr 18, 2018.
Apr 5, 2018
-
Coal Mine Reclamation:
Federal and State Agencies Face Challenges in Managing Billions in Financial AssurancesGAO-18-305: Published: Mar 6, 2018. Publicly Released: Apr 5, 2018.
Mar 20, 2018
-
Nuclear Regulatory Commission:
Additional Action Needed to Improve Process for Billing LicenseesGAO-18-318: Published: Mar 8, 2018. Publicly Released: Mar 20, 2018.
Mar 14, 2018
-
Department of Energy:
Continued Actions Needed to Address Management ChallengesGAO-18-438T: Published: Mar 14, 2018. Publicly Released: Mar 14, 2018.
Feb 28, 2018
-
Department of Energy:
New Process to Review Financial Assistance for Research Projects Created UncertaintyGAO-18-278: Published: Feb 28, 2018. Publicly Released: Feb 28, 2018.
Feb 16, 2018
-
Nuclear Weapons:
NNSA Should Clarify Long-Term Uranium Enrichment Mission Needs and Improve Technology Cost EstimatesGAO-18-126: Published: Feb 16, 2018. Publicly Released: Feb 16, 2018.
Feb 6, 2018
-
Department of Energy:
Continued Actions Needed to Modernize Nuclear Infrastructure and Address Management ChallengesGAO-18-374T: Published: Feb 6, 2018. Publicly Released: Feb 6, 2018.
Jan 30, 2018
-
Nuclear Weapons:
NNSA Should Adopt Additional Best Practices to Better Manage Risk for Life Extension ProgramsGAO-18-129: Published: Jan 30, 2018. Publicly Released: Jan 30, 2018.
Dec 7, 2017
-
Electricity Markets:
Four Regions Use Capacity Markets to Help Ensure Adequate Resources, but FERC Has Not Fully Assessed Their PerformanceGAO-18-131: Published: Dec 7, 2017. Publicly Released: Dec 7, 2017.
Nov 14, 2017
-
Nuclear Weapons:
NNSA Needs to Determine Critical Skills and Competencies for Its Strategic Materials ProgramsGAO-18-99: Published: Nov 14, 2017. Publicly Released: Nov 14, 2017.
Looking for more? Browse all our products here