EXPLORATION
The petroleum industry has been exploring for oil and gas in Wyoming for over 121 years. In 1884 the first oil well was drilled southeast of present day Lander. During 2005, 2,867 wells were drilled and completed. Of that number, 95, or 3.3% found oil, 2,730 or 95.2% found gas, and 42 or 1.5% were dry holes. Only 44 new field wildcat wells, those drilled in unproven areas, were drilled in 2005. In 2005, 75% of wildcat wells found oil or gas.

The deepest well drilled in Wyoming to date was a 25,764-foot dry hole. The deepest producing well is a gas well drilled to 24,877 feet.

The 2005 monthly average rig count was 78; the 1995 average of 23 was the lowest since WWII. In 1981, the all-time record year for rotary rig activity in Wyoming, there were an average of 192 units working monthly.

PRODUCTION
Crude oil and/or natural gas were produced in 20 of Wyoming's 23 counties during 2005. Platte and Teton and Goshen Counties produced neither.

In 2005, sales of crude oil production totaled 51.6 million barrels, down 0.5% from 2004. Sales of natural gas production in 2005 totaled 2 trillion cubic feet up 3.5% from 2004, where 1.93 trillion cubic feet was produced.

Nationally, Wyoming ranked 7th in production of crude oil and 3rd in natural gas production during 2005. In 2005 Wyoming recorded its highest level of natural gas production, 2003 marked the lowest level of crude oil production since 1954. 1970 was the year of highest crude oil production in the state, producing 141,546,503 barrels.

Campbell County was the leading crude oil producer in 2004 followed by Park and Sublette Counties. Sublette County was the largest natural gas producer, with Campbell and Sweetwater Counties following.

During 2004, 523 companies/operators produced Wyoming's crude oil and 275 produced natural gas. There were 31,601 producing wells. In 2005 approximately 10,200 wells produced oil and 23,700 produced natural gas. The average daily production for an oil well was 13 barrels. For a gas well, the average was 224 Mcf’s per day.

Wyoming had 45 operating gas plants in 2005 processing nearly 97% of the state's gas production.

REFINING AND
TRANSPORTATION
Wyoming's first refinery was constructed in Casper in 1895. In 2005 there were four active refineries in the state with a capacity to refine 153,000 barrels of crude oil each day. In 1981 there were fourteen active refineries in the state.

The first crude oil pipeline was constructed in 1911. Today, there are 48 companies operating over 16,000 miles of pipelines in Wyoming carrying crude oil, natural gas or petroleum products. Petroleum pipelines are located in all of the state's 23 counties.

PROPERTY TAXES
Oil and gas production, by itself, accounted for over 52% of the total property taxes levied in Wyoming and more than 79% of the property taxes levied on all minerals.

Property taxes levied – 2004 Mineral Production

Crude Oil……………………$ 106,377,941
Natural Gas........................ 433,780,740
Oil and Gas Total............... $540,158,681

Coal ...................................$121,049,585
Trona ....................................13,779,608
All others............................... 4,829,184
Total All Minerals.................. $679,817,058

Total All State Property……………$1,044,942,814
Property taxes across the state averaged 6.26% on oil and 6.55% on natural gas.

Minerals are the only class or kind of property in Wyoming valued and taxed at 100% of their actual value. Minerals are also the only class or kind of property which pay two direct taxes (property and severance).

RESERVES
At the beginning of 2005 Wyoming ranked 5th in the nation in proved reserves of crude oil and 2nd in natural gas proved reserves. Reserves of natural gas were at their highest levels in Wyoming's history in 2005 at 22.63 trillion cubic feet. 1960 was the largest year for crude oil reserves.

SEVERANCE TAXES
Crude oil and natural gas production paid over $497 million in severance taxes, about 77% of all the severance taxes paid by minerals produced in 2004.

Severance Taxes - 2004 Production

Crude Oil .................$ 89,568,700
Natural Gas................ 407,513,386
Oil and Gas Total ......$497,082,086

Coal .........................$142,726,784
Trona ..........................7,957,732
All Others ...................1,515,809
Total All Minerals ........$649,282,411

Currently, a 6% severance tax rate applies to crude oil and natural gas production (4% on stripper). Severance tax revenues are distributed to a variety of funds including: General Fund, Permanent Mineral Trust Fund, schools, cities, towns, highways, counties and water development.

ROYALTIES
In addition to property and severance taxes, Wyoming collects a royalty for petroleum produced on state owned lands along with certain fees and rentals. The state also receives one-half of the royalties paid to the federal government for leasing, production and fees on federal lands. Typically, the royalty rate on state leases is 16 2/3%. On federal lands, the rate is 12 1/2%.

GENERAL

Wyoming 's petroleum industry directly employs approximately 20,000 people with an annual payroll of over $950 million. In 1981 employment peaked with more than 32,000 individuals working in the industry.

In fiscal year 2005 oil and gas production contributed the following to state and local governments:

Property Taxes……………………….$ 540.2 million

Severance Taxes……………………. 497.1

Federal Royalties ................................ 421.6

State Royalties .................................... 101.1

Sales and Use Taxes .......................... 128.6

Conservation Mill Levy ......................... 5.2

TOTAL FOR STATE ……………….$ 1.693 billion

That is a direct payment of nearly $3,257 for every person living in Wyoming .

The Oil & Gas Industry's Share of Property Assessed for Taxation by County

Fiscal Year 2005:

Albany . .............. .. 3.64
Big Horn ................. 46.73
Campbell ................ 41.03
Carbon…….....………83.62
Converse ................ 41.11
Crook ..................... 47.53
Fremont .................. 79.82
Goshen ………....….. 3.13
Hot Springs ............. 78.23
Johnson ................. .63.79
Laramie ………...…….4.46
Lincoln .................... .69.25
Natrona .................... 48.10
Niobrara ................... 35.80
Park ......................... 57.20
Platte ………..….….…8.39
Sheridan ……............ 47.10
Sublette ................... 95.63
Sweetwater ............... 63.27
Teton…...……......…….00.10
Uinta ........................ 81.18
Washakie ................. 40.56
Weston .................... 57.69

TOTAL FOR STATE ......................... 57.35%

For further information or additional copies, contact:

Petroleum Association of Wyoming
951 Werner Court, Suite 100
Casper, WY 82601
(307) 234-5333
email: paw@pawyo.org

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