The Powder River Basin | August 2021
Field Overview
The Powder River Basin, known for its coal deposits, is located in Southeast Montana and Northeast Wyoming. The basin is named so because it is drained by the Powder River. Major cities in the area include Gillete and Sheridan, Wyoming and Miles City, Montana. There is a recent resurgence in oil and gas production as a result of horizontal drilling and hydraulic fracturing. This resurgence is occurring mainly in the Wyoming part of the basin, which is historically known as the source of the basin’s oil.
State Drilling Statistics
Total Rigs in Wyoming- 18
Total Rigs in United States- 497
Total U.S. Rigs up 94% YTD
State Permitting Data
Permits Approved – 53
Powder River Top Producer
Top Producer by BOE – EOG
Basin Highlights
Loss of Lease Revenue Bodes Poorly for State
The state has lost millions of dollars in revenue as a result of President Joe Biden’s administration’s halt on oil and gas leasing on federal lands, according to Governor Gordon. The Petroleum Association of Wyoming announced in March, in reaction to the Biden administration’s policy, that oil and gas leasing had generated $474 million in revenue since 2015, with $227 million going to the state of Wyoming. Recently, Governor Gordon hosted a meeting with US Secretary of Interior Deb Haaland. Gordon informed Haaland of his view, which is that oil and gas lease sales should be allowed to begin, as well as any sales that have been postponed. He also told Haaland that he doesn’t believe the leasing moratorium is an effective approach for the Biden administration to “fix the environmental concerns they’re trying to address.” According to him, the leasing ban just makes the United States more reliant on foreign oil purchases. Gordon also underlined the importance of the oil and gas business in terms of employment creation for Wyoming.
Coal Leasing Review: The Cherry on Top
The Department of the Interior announced that they will begin a review of the federal coal leasing program, much like they are already doing with oil and gas. Changes in the leasing policy are especially important in Wyoming, where the majority of coal mines are leased through the federal government. The state produces around 40% of all coal in the United States, but the Powder River Basin in Wyoming and Montana accounts for more than 85% of all coal mined on federal lands. Executive director of the Wyoming Mining Association, Travis Deti, says “Right now, I mean, we’re managing, but you get to a point where you’re going to make the mineral too expensive to produce. Coal is very heavily taxed already.”
Operators With Most Permits
Top Producers BOE
| Rank | Company | MMBOE Production (6/21) |
| 1 | EOG | 5.65 |
| 2 | Devon | 4.36 |
| 3 | Chesapeake | 2.59 |
| 4 | Anchutz | 2.01 |
| 5 | Continental Resources | 1.39 |
Rig Count
Wyoming Oil Production
Wyoming Gas Production
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PETRO Engineering, PLLC via the following sources unless otherwise
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www.eia.gov
www.drillinginfo.com
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