‘A Volatile Year’ : 2023 Report Published for Wyoming Oil & Gas Industry

The immediate future is good for the oil and gas industry in Wyoming.

However, the market is unable to find stable footing with daily price swings for both oil and gas and day-to-day uncertainty that delays increased capital expenditures and dissuades investors, according to the annual summary report for oil and gas in Wyoming that was recently published by the Wyoming State Geological Survey.

"Without these funds," the report says, " companies are unable to improve and expand operations, resulting in a market in which oil and gas supply is unable to keep pace with demand. In this way, short-term market volatility can grow into long-term uncertainty."

If anything is certain, it is that Wyoming’s oil and gas industry will continue to adapt to an always changing, often unpredictable world.

 

The report highlighted that the Eastern Basins lead in oil production with Converse and Campbell counties producing roughly 60% of all Wyoming's crude oil, and Laramie County coming in 3rd place.

For more than a decade and into last year, the gas fields of Sublette County account for about 50% of Wyoming's natural gas production.

Throughout the state, more than 100 oil or gas wells were completed by the first half of 2022. There were 201 competed in 2021 and 224 in 2020.

While crude oil and natural gas production returned to their pre-pandemic trends, "this past year was a volatile one, especially for market conditions," the report says.

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It's not all doom and gloom, however, as the summary report forecasts the upcoming year to hold steady for oil and gas.

The U.S. Energy Information Administration predicts the global demand for petroleum will keep increasing, growing demand along with higher prices here in the Cowboy State.

The Consensus Revenue Estimating Group think natural gas production will remain steady, and even increase slightly in response to high natural gas prices.

The long-term prediction, however, is a decline from 2026 onward.

Even so, the short-term outlook for oil and gas in the state looks generally positive.

"If anything is certain, it is that Wyoming’s oil and gas industry will continue to adapt to an always changing, often unpredictable world" the report concluded.