# Experts Hope New Oil Auctions Signal “Striking a Balance” in U.S. Oil Production

Published 2023-06-06 · Updated 2026-03-19 · Energy on MarketScale
Canonical: https://www.marketscale.com/industries/energy/new-oil-auctions-balance-u-s-oil-production

> The U.S. auctioned off its first oil and gas drilling rights on federal lands since the passing of the Inflation Reduction Act, spanning over 10,000 acres across New Mexico and Kansas. This marks the second federal lease auction in New Mexico in over two years. Now that the U.S. oil auction drought is over, should…

The U.S. [auctioned](https://www.oilandgas360.com/us-offers-oil-and-gas-drilling-rights-in-first-auction-since-bidens-ira/) off its first oil and gas drilling rights on federal lands since the passing of the Inflation Reduction Act, spanning over 10,000 acres across New Mexico and Kansas. This marks the second federal lease auction in New Mexico in over two years. Now that the U.S. oil auction drought is over, should this serve as an indicator for increased future U.S. oil production?

The sale, modest by historical standards, included 19 parcels across 3,300 acres in New Mexico’s Permian basin and an additional 26 parcels on 6,800 acres in Cheyenne County, Kansas. The parcels in Kansas and New Mexico are projected to yield 1.53 million barrels of oil and 16.66 thousand cubic feet of natural gas, and 3.2 million barrels of oil and 18.61 million cubic feet of gas, respectively.

Several [protests](https://www.currentargus.com/story/news/2023/05/24/protests-rally-ahead-federal-oil-gas-lease-sale-new-mexico-permian-basin-climate-change/70244444007/) from environmental groups sought to cancel the sale due to perceived inadequacies in addressing greenhouse gas emissions. Criticism around this auction didn’t just come from the environmental movement though; some [oil economists](https://marketscale.com/industries/energy/new-u-s-oil-auctions-short-term-oil-drilling-energy-policy/) say this move doesn’t go far enough, doubtful that one new oil auction signals a change in the Biden administration’s tune on an already [lukewarm approach](https://newrepublic.com/article/171204/biden-drilling-willow-gas-prices) to U.S. oil production and energy policy. Other professionals, like [Ehud Ronn](https://www.linkedin.com/in/ehud-ronn-6399b93/), Professor of Finance at the University of Texas at Austin, and [Joseph Palaia](https://www.pioneerenergy.com/about), Vice President of Business Development at [Pioneer Energy](https://www.pioneerenergy.com/), are hopeful this auction can be the start of a more balanced approach to U.S. oil production and decarbonization goals.

### Joseph’s Thoughts

---
Source: MarketScale, https://www.marketscale.com/industries/energy/new-oil-auctions-balance-u-s-oil-production. Published for AI indexing and citation; cite the canonical URL. Site guide for agents: https://www.marketscale.com/llms.txt