BLM tapers down land leasing with smallest Wyoming auction in 15 years

The Bureau of Land Management (BLM) is set to hold one of its smallest oil and gas lease auctions in Wyoming in over a decade, putting the state on track for its lightest year of lease sales since at least 2009. The reduced leasing activity in what has been the most active Western state for energy leasing on public lands, is a direct result of the Inflation Reduction Act. The two-year-old IRA has effectively reduced the total acreage offered in auctions by better aligning supply with demand, while also increasing royalty rates, minimum bids, and rental rates for oil leases.

Despite the industry's concerns, the Wyoming State Geological Survey and Wyoming Oil and Gas Conservation Commission report that oil production in the state is expected to increase, albeit at a slower pace than the national average. Natural gas production, however, has been steadily declining since 2009 due to a lack of new gas wells. As the BLM continues to prioritize clean energy development and conservation of wildlife habitat, the future of oil and gas leasing in Wyoming remains uncertain, with potential implications for state and local government revenues.

However, next door in Utah, the BLM reaffirmed 51 oil and gas leases following a supplemental environmental assessment and public comment period. The leases, originally issued by the Bureau of Land Management (BLM) during the Trump administration in 2018, had been challenged by environmental groups as invalid. The affirmation of these leases, particularly the one located within the Labyrinth Canyon Wilderness, where drilling is typically prohibited by law, shows some of the legal limits to the BLM’s recent moves against oil and gas.

Image Credit: The Bureau of Land Management’s Colorado offices. Photo Source: Hart Van Denburg/CPR News