Powder River Basin News Pulse December 2021

Posted: January 27, 2022

The Powder River Basin | December 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- 15 (-)
Total Rigs in United States – 586 (+17)
Total U.S. Rigs 53% YTD

State Permitting Data
Permits Approved – 17

Powder River Top Producer

Top Producer by Oil – EOG

Top Producer by Gas – Carbon Creek Energy


Basin Highlights

Federal Oil and Gas Reforms Hold High Stakes for Wyoming

The Biden administration is requiring the Interior Department to revisit federal reforms surrounding oil and gas leasing rights. The reforms will disproportionately affect operators in Wyoming as over half of the state’s surface is federal. This new wave of reforms comes as a response to Biden’s plan to reduce the country’s emission of pollutants, an initiative that has been met with resistance by American energy producers. The Petroleum Association of Wyoming interpreted the move as “politically motivated.”

Oil and Gas Leasing Report Draws State’s Ire

The U.S. Interior Department has released a report with suggested reforms surrounding the way federal land is used in the oil and gas industry. One of the suggestions is to raise the royalty rates for leasing on federal land from 12.5%, the lowest rates among private, federal, and state land in Wyoming. Following examples in Colorado and Texas where state royalty rates were increased with little effect on production, the federal rates are expected to rise in the following year in hopes of boosting federal revenue. 


Operators With Most Permits in WY

RankCompanyPermits
Approved
1EOG 7
2CONTINENTAL RESOURCES 3
3IMPACT EXPLORATION & PRODUCTION 2
3BURNETT OIL CO2
3NORTHWOODS OPERATING2
Hyperlinks to available Q3 2021 Reports

Top Producers Oil

ChangeRankCompanymmbbls Production (09/21)
1EOG 10.7
2Devon 7.4
3Chesapeake4.9
4Anschutz4
5FDL OPERATING3.9
Hyperlinks to available Q3 2021 Reports

Top Producers Gas

ChangeRankCompanyBcf Production (9/21)
1Carbon Creek Energy57.6
2EOG57.3
+13CHESAPEAKE ENERGY33.1
+14DEVON ENERGY11.5
-25PEAK POWDER RIVER RESOURCES7.1
Hyperlinks to available Q3 2021 Reports

Rig Count


Wyoming Oil Production


Wyoming Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics

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