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OIL AND GAS
Federal and tribal energy sales on a steady decline, U.S. says
by Daniel J. Graeber
Washington (UPI) Jul 8, 2013


Baker Hughes says North America's rig count up year-on-year
Houston (UPI) Jul 8, 2013 - The North American energy sector shined in June with active oil and natural gas exploration activity greater than last year, Baker Hughes Inc. said Tuesday.

Baker Hughes published its monthly report on global rig counts. The data reflect the number of rigs actively exploring for oil or natural gas.

The oil services company said there were an average 1,861 rigs active in the United States in June, up two from the number counted in May but up 100 from June 2013.

For Canada, Baker Hughes said the average rig count for June was 240, up 78 from May and 57 more than were counted in June 2013.

North American production is increasing to the extent its markets are relying less on energy imports from outside the region. The Paris-based International Energy Agency in June said global oil supplies rose largely because of output from countries outside the Organization of Petroleum Exporting Countries.

Baker Hughes said that outside North America, the average rig count for June was 1,336, down 14 from May but up three from the number counted in June 2013.

A drop in offshore natural gas production is behind the decline in sales of fossil fuels derived from federal and tribal lands, the U.S. Energy Department said.

The U.S. Energy Information Administration, the department's statistical arm, said Monday sales of fossil fuels from federal and tribal lands in fiscal year 2013 were 7 percent below the previous year's sales.

"One of the main drivers in the decline in sales of fossil fuels from federal and Indian lands is the drop in offshore natural gas production, even as total U.S. natural gas production has grown rapidly because of rising production from onshore shale resources on private lands," EIA said.

Though crude oil production from federal lands increased slightly last year, EIA said those gains were offset by declines in coal and natural gas.

EIA said the declines are part of a trend established in 2003. In the 10-year period ending in 2013, EIA said sales from federal and tribal lands have fallen 21 percent. Production from non-federal and non-tribal lands, meanwhile, has increased 34 percent during the same time frame.

Sales of fossil fuels from federal and tribal lands made up about a quarter of all fossil fuel sales in the United States last year.

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