I'm not sure what your question is, but domestic oil production/extraction is not performed by the federal government, but by corporations that purchase the land from which oil is drilled, either from private landowners or (increasingly during this shit show of a presidency) or by contracting with the federal government for access to federal public lands.
I believe that, currently, Texas is by far the largest oil producing state and has the largest proven reserves. After that, Alaska, the Dakotas/Montana, and California are often drilled for oil. If I recall, there's a fair amount of activity in Appalachia as well.