EXPLORATION
The petroleum industry has been exploring for oil and
gas in Wyoming for over 131 years. In 1884 the first
oil well was drilled southeast of present day Lander.
During 2014, 1,264 wells were drilled and completed.
Of that number, 535, or 42% found oil, 632 or 50%
found gas, and 97 or 8% were dry holes. 83 new field
wildcat wells, those drilled in unproven areas, were
drilled in 2014. In 2014, 86% of wildcat wells found
oil or gas.
PRODUCTION
Crude oil and/or natural gas were produced in 22 of
Wyoming’s 23 counties during 2014. Teton County
produced neither.
oil well was 18 barrels. For a gas well, the average
was 204 Mcf’s per day.
Wyoming had 43 operating gas plants in 2014
processing nearly 88% of the state’s gas production.
GROSS SALES UNITS
2014 are 955 million barrels. Natural gas reserves for
2014 are 34.58 trillion cubic feet. 1960 was the largest
year for crude oil reserves. 2009 was the largest year
for natural gas reserves.
PROVED RESERVES
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 2014 monthly average rig count was 54; 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.
n
AVERAGE MONTHLY RIGS WORKING
OIL & GAS
n
OIL ONLY
NONE
In 2014, sales of crude oil production totaled 75.6
million barrels, up 9.72% from 2013. Sales of natural
gas production in 2014 totaled 1,765 trillion cubic feet
down 4.38% from 2013.
Nationally, Wyoming ranked 7th in production of crude
oil in 2014 and 4th in natural gas production during
2013. In 2009 Wyoming recorded its highest level of
natural gas production, 2009 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 2014 followed by Converse and Park Counties.
Sublette County was the largest natural gas producer,
with Sweetwater and Johnson Counties following.
During 2014, 388 companies/operators produced
Wyoming’s crude oil and 250 produced natural
gas. There were 35,258 producing wells. In 2014
approximately 11,501 wells produced oil and 23,757
produced gas of that number 9,643 were coal bed
natural gas wells. The average daily production for an
REFINING AND
TRANSPORTATION
Wyoming’s first refinery was constructed in Casper
in 1895. In 2014 there were six operating refineries
in the state with a capacity to refine 166,300 barrels
of crude oil each day. In 1981 there were 14 active
refineries in the state.
The first crude oil pipeline was constructed in 1911.
Today, there are approximately 100 companies
operating over 38,600 miles (including gathering lines)
of pipelines in Wyoming carrying crude oil, natural
gas or petroleum products. Petroleum pipelines are
located in all of the state’s 23 counties.
RESERVES
At the beginning of 2014, Wyoming ranked 6th in
the nation in proved reserves of crude oil and 3rd in
natural gas proved reserves. Crude oil reserves for
PROPERTY TAXES
Oil and gas production, by itself, accounted for over
40.4% of the total property taxes levied in Wyoming
and more than 69.4% of the property taxes levied on
all minerals.
Property taxes levied – 2013 Mineral Production
Crude Oil.......................................... $
Natural Gas......................................
Oil and Gas Total............................. $
311,778,154
315,271,683
627,049,837
Coal.................................................. $
Trona................................................
All others..........................................
Total All Minerals.............................. $
235,738,003
29,600,724
10,723,025
903,111,589
Total All State Property………....... $ 1,552,111,794
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).
OIL & GAS SEVERANCE TAXES
GENERAL
In 2014 Wyoming’s petroleum industry directly
employed over 25,800 people with an annual payroll
of over $1.5 billion. In 1981 employment peaked with
more than 32,000 individuals working in the industry.
OIL & GAS PROPERTY TAXES
LEVIED
In fiscal year 2014 oil and gas production contributed
the following to state and local governments:
Property Taxes................................ $ 627.0 million
Severance Taxes.............................597.1
million
Federal Royalties.............................540.5
million
Federal Lease Revenues................44.9
million
State Royalties.................................172.6
million
Sales and Use Taxes......................190.2
million
Conservation Mill Levy.................... 4.7million
TOTAL FOR STATE ...................... $ 2.2 Billion
ROYALTIES
SEVERANCE TAXES
Crude oil and natural gas production paid over $597
million in severance taxes, about 64% of all the
severance taxes paid by minerals produced in 2013.
Severance Taxes - 2013 Production
Crude Oil............................................. $ 291,701,423
Natural Gas.........................................
305,418,653
Oil and Gas Total................................ $ 597,120,076
Coal..................................................... $ 311,300,678
Trona...................................................17,591,469
All Others............................................4,560,745
Total All Minerals.............................. $ 930,572,968
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.
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%.
STATE OIL & GAS ROYALTY AND
LEASING INCOME
That is a direct payment of nearly $3,766 for every
person living in Wyoming.
The Oil & Gas Industry’s Share
of Property Assessed for Taxation by County
Fiscal Year 2014
Albany.....................4.62Natrona................. 43.35
Big Horn…….........45.88Niobrara................ 61.79
Campbell...............25.85Park...................... 58.34
Carbon..................73.42Platte..................... 10.00
Converse...............55.48Sheridan............... 20.08
Crook.....................53.15Sublette................ 95.75
Fremont.................63.00Sweetwater........... 53.58
Goshen..................10.71Teton..................... 00.16
Hot Springs...........77.19Uinta..................... 61.84
Johnson.................84.50Washakie.............. 40.67
Laramie.................16.05Weston................. 54.92
Lincoln...................52.57
TOTAL FOR STATE..........................48.67%
All data obtained from the State of Wyoming and/or federal agencies.
For further information
or additional copies contact:
Petroleum Association of Wyoming
951 Werner Ct., Ste. 100
Casper, WY 82601-1351
(307) 234-5333
Email: [email protected]
(3/15)
2015 Edition