The Powder River Basin | March 2022
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 (+1)
Total Rigs in United States – 698 (+48)
Total U.S. Rigs 16% YTD
State Permitting Data
Permits Approved – 30
Powder River Top Producer
Top Producer by Oil – EOG
Top Producer by Gas – Carbon Creek
Oil and gas leasing has been on pause in Wyoming for many months, a long awaited federal court ruling now allows the Biden administration to push ‘play’ again. Wyoming oil and gas producers are still recovering from whiplash brought on by the federal government back and forth decisions on how to run the leasing program. On March 18, 2022 the courts took into account the ‘social cost of carbon’ and set that amount at $50 per ton, up from $10 under the Trump administration. With clear guidelines in place the administration has said it will resume leasing auctions for oil and gas development on federal lands.
Wyoming is one of the more resource rich states, supplying the rest of the country with oil, gas, and various mined minerals. A committee within the state met to decide the future of a rebate bill for businesses in the oil and gas industry as well as the mining industry. Named Senate File 84 the bill was designed to change state-level taxes to aid the industry workers who are already being taxed quite a bit, it should also help the state to be a more attractive state for prospective businesses. The bill was ultimately put on hold for a year due to an expected increase in federal royalty rates, once more is known on that front the bill can be changed in accordance.
The Bipartisan Infrastructure Law (BIL) has already been put to use in various ways around the country. Wyoming is set to receive $23.9 million from the National Electric Vehicle Infrastructure (NEVI) which falls under the BIL. The money from NEVI will be used mainly to build electric vehicle charging stations all around the state. The charging stations will run on Wyoming power and will help to turn the highways in the state into “Alternative Fuel Corridors”.
Operators With Most Permits in WY
Top Producers Oil
|Change||Rank||Company||mmbbls Production (Jan-Feb/22)|
Top Producers Gas
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Wyoming Oil Production
Wyoming Gas Production
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