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
| Rank | Company | Permits Approved |
| 1 | EOG | 7 |
| 2 | CONTINENTAL RESOURCES | 3 |
| 3 | IMPACT EXPLORATION & PRODUCTION | 2 |
| 3 | BURNETT OIL CO | 2 |
| 3 | NORTHWOODS OPERATING | 2 |
Top Producers Oil
| Change | Rank | Company | mmbbls Production (09/21) |
| – | 1 | EOG | 10.7 |
| – | 2 | Devon | 7.4 |
| – | 3 | Chesapeake | 4.9 |
| – | 4 | Anschutz | 4 |
| 5 | FDL OPERATING | 3.9 |
Top Producers Gas
| Change | Rank | Company | Bcf Production (9/21) |
| – | 1 | Carbon Creek Energy | 57.6 |
| – | 2 | EOG | 57.3 |
| +1 | 3 | CHESAPEAKE ENERGY | 33.1 |
| +1 | 4 | DEVON ENERGY | 11.5 |
 -2 | 5 | PEAK POWDER RIVER RESOURCES | 7.1 |
Rig Count
Wyoming Oil Production
Wyoming Gas Production
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