• Global oil market continues to fluctuate-Wyoming’s oil and gas holding steady
On Monday, July 7, Pete Obermueller, President of the Petroleum Association of Wyoming, called into the Weekday Wake-up to provide an update on the current and projected oil and gas markets in Wyoming as summer approaches.
Obermueller noted that while the global oil market continues to fluctuate, Wyoming’s oil and gas industry is holding steady. “All things considered, it’s been going pretty well,” he said. The price of oil is hovering around the mid-60s to mid-70s per barrel, which, while manageable, is not ideal for producers. In contrast, natural gas prices are performing better, leading to an uptick in drilling activity in areas like Sublette County. “There might be even two new rigs up over in Sublette County, more in your neck of the woods, drilling for gas, because the gas prices are doing well,” he explained.
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“Over in Sublette County, what they drill for is just straight natural gas that then they can liquefy and put in pipelines and move out to the West Coast, where most of their market is out there to help heat homes and gas stoves, those sorts of things. It’s not the gas that you pump into your car. That’s a refined product that comes from oil production,” Obermueller clarified.
Wyoming’s rig count has stabilized at around 13 to 14 active rigs, a significant drop from the upper 20s or low 30s seen before the COVID-19 pandemic. Despite having fewer rigs, production levels have not seen a drastic decline. This stability is attributed to advancements in drilling technology, particularly horizontal drilling, which allows for greater efficiency in resource extraction. “And as we develop this technology to turn and go horizontally, we can produce the same amount of oil and or gas with so many fewer rigs,” Obermueller noted.
Obermueller expressed optimism about the state’s economic resilience, especially in light of ongoing global issues such as the conflict in Ukraine and tensions in the Middle East. “Given all of that, it’s a little surprising that there’s not more volatility,” he stated. The steady state of Wyoming’s oil and gas sector is vital, providing employment for approximately 18,000 to 19,000 residents directly tied to the industry.
As summer progresses, all eyes will be on the Wyoming oil and gas industry to see how it navigates both local and global challenges. With its current trajectory, the state appears poised to remain a key player in America’s energy landscape.
