Address:
951 Werner Court
Suite 100
Casper, WY 82601
Phone:
307-234-5333


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EXPLORATION
The petroleum industry has been exploring for oil and gas in Wyoming for over 122 years. In 1884 the first oil well was drilled southeast of present day Lander. During 2006, 3,243 wells were drilled and completed. Of that number, 166, or 5.1% found oil, 3,009 or 92.8% found gas, and 68 or 2.1% were dry holes. Only 38 new field wildcat wells, those drilled in unproven areas, were drilled in 2006. In 2006, 58% of wildcat wells found oil or gas.

The deepest well drilled in Wyoming to date was a 25,764-foot dry hole. The deepest producing well is a gas well drilled to 24,877 feet.

The 2006 monthly average rig count was 99; the 1995 average of 23 was the lowest since WWII. In 1981, the all-time record year for rotary rig activity in Wyoming, there were an average of 192 units working monthly.

PRODUCTION
Crude oil and/or natural gas were produced in 20 of Wyoming's 23 counties during 2006. Platte and Teton and Goshen Counties produced neither.

In 2006, sales of crude oil production totaled 52.9 million barrels, up 2.3% from 2005. This is the first increase in 22 years. Sales of natural gas production in 2006 totaled 2.112 trillion cubic feet up 4.8% from 2005, where 2 trillion cubic feet was produced.

Nationally, Wyoming ranked 7th in production of crude oil and 2nd in natural gas production during 2006. In 2006 Wyoming recorded its highest level of natural gas production, 2005 marked the lowest level of crude oil production since 1954. 1970 was the year of highest crude oil production in the state, producing 141,546,503 barrels.

Campbell County was the leading crude oil producer in 2006 followed by Park and Sublette Counties. Sublette County was the largest natural gas producer, with Campbell and Sweetwater Counties following.

During 2006, 391 companies/operators produced Wyoming's crude oil and 282 produced natural gas. There were 36,000 producing wells. In 2006 approximately 9,700 wells produced oil and 26,300 produced gas of that number 17,200 produced natural gas. The average daily production for an oil well was 13 barrels. For a gas well, the average was 234 Mcf’s per day.

Wyoming had 45 operating gas plants in 2006 processing nearly 97% of the state's gas production.

REFINING AND TRANSPORTATION
Wyoming's first refinery was constructed in Casper in 1895. In 2006 there were four active refineries in the state with a capacity to refine 157,000 barrels of crude oil each day. In 1981 there were fourteen active refineries in the state.

The first crude oil pipeline was constructed in 1911. Today, there are 48 companies operating over 16,000 miles of pipelines in Wyoming carrying crude oil, natural gas or petroleum products. Petroleum pipelines are located in all of the state's 23 counties.

 

PROPERTY TAXES
Oil and gas production, by itself, accounted for over 58% of the total property taxes levied in Wyoming and more than 83% of the property taxes levied on all minerals.

Property taxes levied – 2005 Mineral Production

Crude Oil …………………….
Natural Gas …………………
Oil and Gas Total …………..

Coal ………………………….
Trona ………………………..
All others …………………...
Total All Minerals ………….

Total All State Property ...

$139,875,060
$627,646,799
$767,521,859

$135,448,194
$17,355,478
$5,633,291
$925,958,822

$1,331,002,100


Property taxes across the state averaged 6.26% on oil and 6.55% on natural gas.

Minerals are the only class or kind of property in Wyoming valued and taxed at 100% of their actual value. Minerals are also the only class or kind of property which pay two direct taxes (property and severance).

RESERVES
At the beginning of 2006 Wyoming ranked 4th in the nation in proved reserves of crude oil and 2nd in natural gas proved reserves. Reserves of natural gas were at their highest levels in Wyoming's history in 2006 at 23.77 trillion cubic feet. 1960 was the largest year for crude oil reserves.

SEVERANCE TAXES
Crude oil and natural gas production paid over $711million in severance taxes, about 81% of all the severance taxes paid by minerals produced in 2005.

Severance Taxes - 2005 Production

Crude Oil …………………….
Natural Gas …………………
Oil and Gas Total …………..

Coal ………………………….
Trona ………………………..
All others …………………...
Total All Minerals ………..

$ 119,050,807
$592,066,775
$711,117,582

$ 159,518,200
$10,208,654
$1,926,599
$882,771,035

Currently, a 6% severance tax rate applies to crude oil and natural gas production (4% on stripper). Severance tax revenues are distributed to a variety of funds including: General Fund, Permanent Mineral Trust Fund, schools, cities, towns, highways, counties and water development.

ROYALTIES
In addition to property and severance taxes, Wyoming collects a royalty for petroleum produced on state owned lands along with certain fees and rentals. The state also receives one-half of the royalties paid to the federal government for leasing, production and fees on federal lands. Typically, the royalty rate on state leases is 16 2/3%. On federal lands, the rate is 12 1/2%.

GENERAL

Wyoming 's petroleum industry directly employs approximately 20,000 people with an annual payroll of over $1.0 billion. In 1981 employment peaked with more than 32,000 individuals working in the industry.

In fiscal year 2006 oil and gas production contributed the following to state and local governments:

Property Taxes
Severance Taxes
Federal Royalties
State Royalties
Sales and Use Taxes
Conservation Mill Levy

TOTAL FOR STATE

$767.5
$711.1
$606.1
$157.7
$250.0
          $3.6

$2,496,000

That is a direct payment of nearly $4,800 for every person living in Wyoming.

The Oil and Gas Industries
share of property assessed for taxation
by county fiscal year 2005:

Albany
Big Horn
Campbell
Carbon
Converse
Crook
Fremont
Goshen
Hot Springs
Johnson
Laramie
Lincoln

3.51
50.96
42.75
87.74
44.51
48.73
84.27
3.05
79.57
79.65
5.25
72.51
  Natrona
Niobrara
Park
Platte
Sheridan
Sublette
Sweetwater
Teton
Uinta
Washakie
Weston
49.65
45.96
60.40
8.76
54.57
97.12
68.73
00.08
82.47
48.31
61.50

TOTAL FOR STATE ......................... 62.95%

For further information or additional copies, contact:

Petroleum Association of Wyoming
951 Werner Court, Suite 100
Casper, WY 82601
(307) 234-5333
email: paw@pawyo.org

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