US federal funds for energy production will decline by 11% by 2025

Interior Department reported on Friday that revenue from energy production in U.S. public waters and lands fell by 11% to $14.61 Billion during the last fiscal year, citing lower commodity prices like oil.

Why it's important

The total is the lowest since 2021 - the first year under the administration of U.S. president Joe Biden - but the fifth highest since 1982.

As part of his agenda to dominate the energy sector, President Donald Trump pledged to increase energy production on federal land and waters while keeping prices low for consumers.

By the Numbers

Interior Department reported that the U.S. spent $14.61 billion on energy production in federal, tribal and offshore areas. This is down from $16.45 million in fiscal year 2024. The federal fiscal period ends in September.

The U.S. Treasury Department has received $5.01 Billion, while the states have received $4.07 Billion.

New Mexico received 2,76 billion dollars, more than any other State. Tribes, individual Indian mineral owners and other Indian groups received $1 billion.

The agency has not released annual production figures.

Key Context

The price of crude oil in the United States has dropped by about 20% so far this year. The U.S. Government collects revenue from energy companies who drill or mine federal lands by way of royalties, rentals and other fees.

The One Big Beautiful Bill Act of Trump, signed into law by the President in July, reduced the federal royalty rate on onshore oil production from 16.67% to 12.5%, compared to the 16.67% imposed by Congress during the Biden Administration.

The Trump tax plan also reduced the royalty rates for coal mining, offshore oil and natural gas production. (Reporting and editing by Daniel Wallis; Nichola Groom)

(source: Reuters)