With the development of horizontal drilling, well depth is measured differently with both True Vertical Depth (TVD) — the depth below the surface — and Measured Depth (MD), which is the total length of the well bore including both vertical and lateral depth.
Wyoming ranked 8th nationally in production of both crude oil and natural gas in 2022. Wyoming also ranked the 2nd largest producer of both oil and natural gas on federal lands, making the state disproportionally affected by national policy changes.
At its peak, Wyoming had 27,951 producing wells in 2022 — including 10,120 producing oil wells and 17,800 producing gas wells.
Wyoming had 33 operating gas plants in 2022 processing nearly 97% of the state's gas production.
Twenty-one of Wyoming's 23 counties produce oil and/or natural gas. Teton and Platte Counties are the only two counties without active production. Converse County continues to lead crude oil production in the state, followed by Campbell and Laramie Counties. Sublette County tops natural gas production while Sweetwater and Converse Counties follow in second and third.
Wyoming's first refinery was constructed in Casper in 1895. In 2022 there were 4 operating refineries in the state with a capacity to refine 125,850 barrels of crude oil each day. In 1981 there were 14 active refineries in the state.
The first crude oil pipeline was constructed in 1911. Today, there are approximately 100 companies operating more than 25,000 miles of pipelines in Wyoming, not including all gathering systems or all inactive or abandoned pipelines.
Pipelines are located in all of Wyoming's 23 counties and carry crude, natural gas, natural gas liquids, carbon dioxide, and petroleum products.
According to the Energy Information Agency, Wyoming produces nearly 12 times the amount of energy it consumes, making it the second-largest net exporter of energy after Texas.
Oil and gas production, by itself, accounted for over 40% of the total property taxes levied in Wyoming and approximately 80% of the property taxes levied on all minerals.
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.
| Property Taxes Levied — 2022 Mineral Production | Amount |
|---|---|
| Crude Oil | $485,844,982 |
| Natural Gas | $393,975,948 |
| Oil and Gas Total | $879,820,930 |
| Coal | $166,969,468 |
| Trona | $37,072,564 |
| All Others | $9,079,352 |
| Total All Minerals | $1,092,942,314 |
| Total All-State Property Taxes Levied | $2,199,769,606 |
Crude oil and natural gas production paid over $274 million in severance taxes, about 59% of all the severance taxes paid by minerals produced in 2020.
A 6% severance tax rate applies to crude oil and natural gas production (4% on stripper wells).
Severance Tax Revenues Distributed To
| Severance Taxes — 2022 Production | Amount |
|---|---|
| Crude Oil | $460,068,045 |
| Natural Gas | $375,365,837 |
| Oil and Gas Total | $835,433,882 |
| Coal | $185,826,137 |
| Trona | $22,653,914 |
| All Others | $2,754,669 |
| Total All Minerals | $1,046,668,602 |
According to the EIA, at the end of 2021, Wyoming's proven reserves included:
According to a 2023 study released by the American Petroleum Institute, in 2021 the oil and natural gas industry had the following impacts on Wyoming's economy:
According to the Bureau of Economic Analysis, Wyoming's top three industries by GDP are Oil and Natural Gas Production, Tourism, and Agriculture.
In fiscal year 2023, oil and gas production contributed significantly to state and local governments. The oil and natural gas industry has provided more than $11 billion to the state of Wyoming for education, infrastructure, government operations, and more over the last six years.
In 2023 alone, the industry's contributions equated to approximately $4,143.43 in direct payments to the state for every Wyoming resident — helping keep individual taxpayers' burdens lower than many other states.
Gross Domestic Product (GDP) by Industry (in millions)
According to the Bureau of Economic Analysis, Wyoming's top three industries by GDP are Oil and Natural Gas Production, Tourism and Agriculture.
Historic Contributions to the State (in billions)
The oil and natural gas industry has provided more than $11 billion to the state of Wyoming for education, infrastructure, government operations and more over the last six years. In 2023 alone, the industry's contributions equated to approximately $4,143.43 in direct payments to the state for every Wyoming resident – helping keep individual taxpayers' burdens lower than many other states.
All data obtained from the State of Wyoming and/or federal agencies.