EXPLORATION

The petroleum industry has been exploring for oil and gas in Wyoming for over 124 years. In 1884 the first oil well was drilled southeast of present day Lander.  During 2007, 3,112 wells were drilled and completed. Of that number, 152, or 4.9% found oil, 2,875 or 92.4% found gas, and 85 or 2.7% were dry holes. Fifty one new field wildcat wells, those drilled in unproven areas, were drilled in 2007. In 2007, 49% 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 2007 monthly average rig count was 74; the 1995 average of 23 was the lowest since WWII. In 1981, the all-time record year for rotary rig activity in Wyoming, there was an average of 192 units working monthly.

PRODUCTION
Crude oil and/or natural gas were produced in 20 of Wyoming's 23 counties during 2007. Platte, Teton and Goshen Counties produced neither.

In 2007, sales of crude oil production totaled 53.4 million barrels, up 3.7% from 2006. Sales of natural gas production in 2007 totaled 2,254 trillion cubic feet up 9.5% from 2006.

Nationally, Wyoming ranked 5th in production of crude oil and 2nd in natural gas production during 2007. In 2007 Wyoming recorded its highest level of natural gas production, 2005 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.

Park County was the leading crude oil producer in 2007 followed by Campbell and Sublette Counties. Sublette County was the largest natural gas producer, with Campbell and Sweetwater Counties following.

During 2007, 475 companies/operators produced Wyoming's crude oil and 288 produced natural gas. There were 37,700 producing wells. In 2007 approximately 10,300 wells produced oil and 27,400 produced gas of that number 17,300 were coal bed natural gas wells. The average daily production for an oil well was 12 barrels. For a gas well, the average was 237 Mcf’s per day.

Wyoming had 45 operating gas plants in 2007 processing nearly 97% of the state's gas production.

REFINING AND TRANSPORTATION
Wyoming's first refinery was constructed in Casper in 1895. In 2007 there were four active refineries in the state with a capacity to refine 200,000 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 89 companies operating over 22,700 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 66% of the property taxes levied on all minerals.

Property taxes levied – 2006 Mineral Production

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 2007 Wyoming ranked 4th 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 2006 at 23.77 trillion cubic feet. Reserves for 2007 are 23.55 trillion cubic feet. 1960 was the largest year for crude oil reserves. 

SEVERANCE TAXES
Crude oil and natural gas production paid over $666 million in severance taxes, about 76% of all the severance taxes paid by minerals produced in 2006.

Severance Taxes - 2006 Production

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 $1.0 billion.  In 1981 employment peaked with more than 32,000 individuals working in the industry.

In fiscal year 2007 oil and gas production contributed the following to state and local governments:

That is a direct payment of nearly $ 4,286 for every person living in Wyoming.

TOTAL FOR STATE ......................... 58.79%

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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