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Wyoming Impact of Federal Moratorium on New Oil and Gas Leases

The University of Wyoming’s School of Energy Resources online roundtable outlined how the recent federal moratorium ban on new oil and gas leases would hinder Wyoming’s economy.

Kris Koski, a lecturer with the University of Wyoming’s School of Energy Resources, states that Wyoming stands to be impacted disproportionately to other states and that it is nearly impossible to produce oil and gas without involving the federal government in some way.  Wyoming is the nation’s top producer of oil and natural gas from federal minerals, contributing 38% of the natural gas produced on federal land nationwide, along with 16% of oil production.

Wyoming’s Pipeline Corridor Initiative Approved

The State of Wyoming’s WPCI proposal identifies key statewide pipeline corridors for future pipeline development associated with carbon capture, utilization, and storage (CCUS) as well as associated enhanced oil recovery (CO2-EOR) facilities across private, state and BLM-managed lands.

“The signing of this Record of Decision is an important piece of the puzzle as Wyoming continues to be a trailblazer on the path to establish a carbon capture facility,” Gov. Mark Gordon told the Star-Tribune in a statement. “The ability to have a CO2 delivery system, as made possible by the pipeline corridor initiative, helps make CO2 commercially viable.”

The WPCI project does not develop or construct pipelines projects but aims to expedite environmental analysis of the designated corridors to make future project specific proposals more efficient.

Governor Gordon’s Opening Address

Governor Gordon reaffirmed his support for Wyoming’s energy industries and continues to advocate for the development of carbon capture, utilization and storage technologies (CCUS).

Governor Gordon expects ongoing support from the Department of Energy for coal capture technologies for coal-fired power plants.  Retrofitting Wyoming’s existing power plants with carbon capture technologies could boost employment as well as reduce CO2 emissions.

Oil and Gas Project in Eastern Wyoming

The final record of decision allows five energy companies to extract federal minerals within the 1.5 million-acre project between Glenrock and Douglas.

The Converse County Oil and Gas Project proposes to develop 5,000 new oil and natural gas wells, 1,500 miles of gas gathering pipelines, along with roads, electrical lines and other infrastructure between Glenrock and Douglas.  The project is estimated to provide thousands of job in Wyoming, help boost revenue to the state while striking a needed balance between energy development and the protection of wildlife.

CO2 Law, Regulation and Policy

The United States Energy Association (USEA) with the help of the University of Wyoming’s School of Energy Resources (SER) released a report entitled “Study on State's Policies & Regulations per CO2-EOR Storage Conventional, ROZ and EOR in Shale: Permitting, Infrastructure, Incentives, Royalty Owners, Eminent Domain, Mineral-Pore Space, and Storage" and suggests opportunities to harmonize energy policies and address regulatory gaps and inconsistencies. 

The study provides comprehensive and comparative analysis of four dimensions of CO2 law, regulation and policy: 1) land use, mineral water, and pore space rights; 2) regulation of CO2-EOR and CO2 pipelines; 3) eminent domain; and 4) geologic CO2 storage and incremental storage regulation and policy across 12 states and onshore federal lands.

Ban on New Federal Oil and Gas Drilling Leases Bad for Wyoming

A possible federal oil and gas leasing ban could cost Wyoming hundreds of millions in annual revenue and thousands of jobs and proposes the state could lose more than $300 million per year in tax revenue.

The Fiscal and Economic Impacts of Federal Onshore Oil and Gas Lease Moratorium and Drilling Ban Policies study conducted by the University of Wyoming, shows the value of lost production in Wyoming under a leasing moratorium during the first five years is on average $872 million. This policy would disproportionately impact the state’s economy because Wyoming develops more federal minerals than almost any other state in the country. The study’s author, Dr. Timothy Considine, says “There are many cost effective technologies and strategies to reduce greenhouse gas emissions. Restricting development of oil and gas on federal lands is not one of them.”

Professor John Kaszuba awarded John and Jane Wold Centennial Chair in Energy

The University of Wyoming has named Professor John Kaszuba as the recipient of the John and Jane Wold Centennial Chair in Energy.

“Professor Kaszuba epitomizes the spirit and intent of the Wold Chair, and is an inspirational colleague, mentor and researcher who impacts the state in profound ways,” Interim Provost Anne Alexander says. “Part of making advancements in any field is not only partaking in and spearheading groundbreaking research and discoveries, but also in sharing that knowledge and training the next generation of Wyoming energy leaders for the future. John’s work and his appointment to this position recognize and embrace a fundamental mission of a land-grant institution, and have lasting impacts for our state.”

Wyoming Residents Support Diverse Energy Strategy

A study conducted by the University of Wyoming’s School of Energy Resources and Ruckelhaus Institute of Environment and Natural Resources reveals that Wyomingites overwhelmingly welcome a wide diversity of energy development to ensure a secure economy while preserving the environment for generations to come.

The results of the study indicate there is strong support for gas, oil, renewables, and coal in that order.  The public perceives that Wyoming’s energy portfolio will need to evolve and that Wyoming needs to prepare for that change.