DOI Econ Spotlight

Onshore Oil and Gas Development

Onshore Oil and Gas Development

Development of oil and gas wells on Federal and Tribal lands increased substantially between FY 2016 and FY 2017. Nationally the number of onshore wells increased by almost 85% with notable gains in Colorado, New Mexico, Utah, and Wyoming. The increase in activity was likely driven in large part by rebounding oil and gas prices, which increased about 25% over the period. In FY 2017, Federal and Tribal well development supported over 100,000 jobs and $7.8 billion in labor income, and contributed approximately $22.5 billion to National economic output.

Coal Production from Federal Lands

Coal Production from Federal Lands

Production from Federal coal leases reached about 335 million tons – an approximate 12% increase from FY 2016. This 12% increase was a faster rise than the 6% rise for the Nation as a whole. Approximately 85% of coal produced on Federal land originated from leases in Wyoming; coals from Federal leases accounted for 42% of total U.S. coal production volumes. Nationally, coal production from Federal lands directly supported over 6,100 jobs and, when accounting for secondary effects, supported a total of almost 39,000 jobs, $2.75 billion in labor income, and $11.8 billion in economic output.

2016 National Survey of Fishing, Hunting, and Wildlife-Association Recreation

2016 National Survey of Fishing, Hunting, and Wildlife-Association Recreation

In April 2018, the U.S. Fish and Wildlife Service released the results of the 2016 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation. The Survey has been conducted since 1955 and is one of the oldest and most comprehensive continuing outdoor recreation surveys. The survey collects information on the number and characteristics of anglers, hunters, and wildlife watchers, how often they participate, and how much they spend on their activities. The survey found that in 2016, 103.7 million Americans participated in wildlife-related recreational activities and spent an associated $156.9 billion. The majority of individuals (86.0 million) participated in wildlife watching activities compared to those who also, or only, fished (35.8 million) or hunted (11.5 million). Compared to the previous survey conducted in 2011, the number of wildlife watching participants and anglers increased by 20 percent and 8 percent, respectively, while the number of hunters declined by 15 percent.

Economic Contributions of Recreation on National Conservation Lands

Economic Contributions of Recreation on National Conservation Lands

The BLM manages the National Conservation Lands, a system of 876 Federally recognized units comprising about 34 million acres. These units include 27 national monuments, 21 national conservation areas and similarly designated areas, as well as Congressionally designated wilderness, trails, and rivers. A BLM study evaluated the economic contributions of visitation to the 48 national monuments and national conservation areas for fiscal year 2017. The visitor expenditures associated with an estimated 9.2 million visits supported approximately 7,300 jobs, $389 million in value added, and $670 million in economic output in local and state economies.

Economic Impacts of Renewable Energy on Tribal Lands

Economic Impacts of Renewable Energy on Tribal Lands

Many Tribes have access to renewable energy resources and the potential economic impacts from successful development of those resources. An example of this economic potential is the Fond du Lac Band of Lake Superior Chippewa’s 1 MW solar project, located near the Tribe's Black Bear Casino and Resort. The project was brought on-line in August 2016 and is expected to generate 1,275 MWh of electricity each year, offsetting 10-15% of the Black Bear Casino and Resort’s annual energy needs.

The Tribe received grant funding from the Division of Energy and Mineral Development (DEMD) to assist in project planning and design. Grant funds were used to develop a financial model of the project, to market the project to tax equity investors, to obtain technical design specifications, and to develop a request for proposals (RFP) for the design and construction of the facility. The grant, in conjunction with tribal contributions and a $2 million contribution from Minnesota Power, brought this project to fruition.

National Indian Oil and Gas Evaluation Management System (NIOGEMS)

National Indian Oil and Gas Evaluation Management System (NIOGEMS)

The National Indian Oil and Gas Evaluation Management System (NIOGEMS) is an application developed and managed by the Office of Indian Energy and Economic Development (IEED) and its Division of Energy and Mineral Development (DEMD). NIOGEMS plays a part in the evaluation and management of energy and minerals in Indian Country. In FY 2017, oil, gas, and coal production made a direct economic contribution of $4.2 billion and a total economic contribution of $9.9 billion to Indian Country.

NIOGEMS is a map-oriented computer application for managing reservation oil and gas leases, well-production data, and other energy and mineral resources. The system is designed to assist oil and gas producing Indian tribes, and tribes with other energy and mineral resources, to achieve their goals towards self-governance and compacting. NIOGEMS allows tribal entities, IEED, BIA, and other supporting DOI resource managers to readily access financial, realty, and geo-technical information, as well as complex resource data gleaned from other data systems and sources. These data are used for tracking and making decisions on leasing, developing, and managing energy and mineral resources. NIOGEMS is currently installed at approximately 30 locations and. will be expanded to include more detailed data and supporting functions for several additional energy and mineral areas.

Economic and Community Development Nexus on Mined Lands

Economic and Community Development Nexus on Mined Lands

The economic contribution from grants to States is typically assessed by annual spending on current activity such as reclamation. Grants support jobs directly and indirectly from other related activities from the purchases of goods and services. However, improvements to water quality and other natural resources on previously mined land can be viewed as an investment associated with long-term economic impacts. These types of environmental improvements can promote increased recreation and tourism, and facilitate community development. The Office of Surface Mining Reclamation and Enforcement (OSMRE) made funding available in FY 2017 to six Appalachian states for projects in the Abandoned Mine Land Reclamation Economic Development Pilot Program, authorized by the Consolidated Appropriations Act, 2017 (Public Law 115-31). The AML Pilot program offers States and local communities flexibility in deciding which projects offer the greatest benefit for their communities. One example is the Appalachian Wildlife Center, an extensive project in Kentucky approved for AML Pilot funding on previously mined land. Its centerpiece is a visitor center that features the largest elk restoration and viewing effort in the United States, projected to bring $124 million into the regional economy. Scheduled to open in 2019, it is expected to attract over 600,000 visitors annually and spur future growth and diversification of the local community.