Majority of Government Drilling Revenue is from Off-Shore Leases.

On average, the U.S. Treasury collects about $11 billion annually from oil and gas drilling on public lands; the majority of revenue, $6.6 billion in FY2012, comes from offshore leases. The United States must increase federal investment in critical energy innovation programs to drive down the cost of clean energy. ITIF proposes a potentially bipartisan solution: Congress can generate $1 billion in new revenue by increasing fees on oil and gas drilling on public lands, which should be directed towards fully-funding the Department of Energy's Advanced Research Projects Agency-Energy (ARPA-E).