(Oil & Gas 360) – A federal report on oil and gas extraction from sovereign Native American lands shows a downward trend for one of the country’s poorest groups.
The Office of Natural Resources Revenue shows that oil and gas production on Native American land was down over 25% and 10%, respectively, under the Biden-Harris administration compared to the previous administration. The Trump administration saw the highest production levels from Native American lands in over a decade, at over 100 million barrels of oil and nearly 400 billion cubic feet of natural gas.
Natural resource extraction on Native American lands falls under the U.S. Department of the Interior, a federally mandated fiduciary for the nations, with the mission of maximizing revenues from their lands.
A significant factor accounting for the lower production stems from the withdrawal of oil and gas lease sales; the current administration has cited climate issues and environmental justice for its unwillingness to conduct lease sales.
The inaction prompted a lawsuit against Deb Haaland, the Secretary of the Interior, and the Bureau of Land Management in 2022, contending that the federal government was not fulfilling its trust responsibility to the country’s Native American nations.
The lawsuit — filed by the Petroleum Association of Wyoming and the Denver-based Western Energy Alliance — argued that the canceled lease sales violated the Mineral Leasing Act of 1920, which mandates quarterly lease sales on public lands.
The plaintiffs also contend that canceled lease sales negatively affect the ability of member companies of the two organizations to plan and budget effectively. They seek a court order to force the BLM to hold quarterly lease sales.
Contention over natural resources and differences over the role federal agencies play in their management could similarly affect mining for rare earth minerals from Native American lands as well.
Asset management and banking firm MSCI notes that 97% of the U.S. nickel, copper, lithium, and cobalt reserves and resources are within 35 miles of Native American land.
Native American nations have several advocacy groups focused on energy development, including efforts to establish a network of electric vehicle charging stations, expand renewable projects, and enhance their sovereignty and sustainability. For instance, the National Tribal Energy Association works to connect stakeholders with nations, industry, and the government regarding energy projects.
The Colorado School of Mines Native American Mining and Energy Sovereignty Initiative aims to leverage the college’s mining and public policy expertise to help “to find financial success in the energy transition while gaining energy security and sovereignty for their people.”
There are 574 federally recognized Native American nations in the U.S.
By Jim Felton for oilandgas360.com
