2022 was an overall positive year for Wyoming's oil and gas industry
2022 Summary Report available for free download
by Wyoming State Geological Survey
February 23, 2023
Wyoming’s oil and gas production was, for the most part, back to normal in 2022, according to the latest summary report (free download) on oil and gas from the Wyoming State Geological Survey (WSGS). The goal of this annual report from the Energy and Minerals division is to inform the general public about recent events and trends in the oil and gas industry.
One of the most positive items in this year’s report was that oil production in 2022 was greater than had been originally predicted. At the beginning of last year, the Consensus Revenue Estimating Group (CREG) estimated a statewide total of 85 million barrels of oil, but in October CREG revised its forecast, adding an extra five million barrels to Wyoming’s production. By the end of the year, it was clear that Wyoming was on track to meet or slightly exceed that revised prediction.
The summary report also discussed oil production throughout the state in finer detail. In reviewing production by county, the report noted that 60 percent of Wyoming’s oil comes from just two counties, Converse and Campbell counties, in the Powder River Basin. In addition, Laramie County, in the northern Denver Basin, contributes more than 10 percent of the state’s total.
As for natural gas, production in Wyoming either held steady or declined in 2022. Sublette, Sweetwater, and Fremont continued to be the top producing counties.
In addition to providing a recap of last year’s production, the report mentioned a few recent developments to keep an eye on going forward. For one, some changes had been made to the Bureau of Land Management oil and gas lease sale process in 2022, including a new royalty rate. Although only one sale took place in 2022, the future might bring a return to quarterly sales. When the report was published, the BLM had announced preliminary parcels for its second- and third-quarter lease sales this year.
Also new in oil and gas last year was record-breaking market volatility due in part to global supply disruptions. With unpredictable day-to-day oil and natural gas prices, it can be difficult for oil and gas companies to plan for the long term. Exactly how this will play out for operators in Wyoming is uncertain, but, as the report concludes, "If anything is certain, it is that Wyoming’s oil and gas industry will continue to adapt to an always changing, often unpredictable world."
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