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Steam Injection Operations at Midway-Sunset Oilfield near Taft. |
California is the nation's 3rd largest onshore producer of oil and gas from federal lands. In fiscal year 2007, federal lands produced more than 17.8 million barrels of oil, and 4.1 billion cubic feet of natural gas. Royalties paid to the United States amounted to $92 million for oil, with an additional $4 million for natural gas. Half of all revenues generated are distributed to the State of California.
Most oil and gas leasing and development on public lands occur in the San Joaquin Valley of central California, on lands managed by the BLM's Bakersfield Field Office. The highest producing onshore BLM lease in the entire lower 48 states is in Kern County. Operated by Chevron on land in Midway-Sunset Oilfield, the “Section 22 lease” produces 8,000 barrels of oil per day, generating annual revenues of more than $175 million.
Oil has been continuously produced in the state since the late 1800’s, although only 39% of the oil used in California in 2006 was produced here (down from 42% in 2004.) For the past 10 years, that percentage has been decreasing by roughly 1.5% each year.
BLM typically holds quarterly lease sales offering public land mineral resources that may be of interest to industry for future exploration.
With the approval of the Energy Policy Act in August, 2005, BLM assumed management of the Naval Petroleum Reserve No. 2 (Buena Vista Field) in Kern County from the Department of Energy. Following completion of an update to land use planning documents, BLM offered an additional 2,500 acres of unleased federal lands for competitive sale on September 13, 2006, in one of the most successful Oil and Gas lease auctions ever held (on the basis of bonus bid $ per acre). For more information, click on the In The Spotlight or Leasing links on this page.
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