Yesterday, oil prices hit a 13-year low
(less than $27 per barrel)
as international stocks of crude continues to outweigh demand.
Wyoming's economy relies heavily on the oil industry with impacts to state
coffers, personal finances, and from, there the general business life of
Mark Watson, the Wyoming Oil and Gas Conservation Commission's Oil and Gas
Supervisor, paints a not so pretty picture should the trend continue. "It's
definitely a tough time in the energy industry in Wyoming," he said.
He said the state can expect layoffs to continue, especially in the service
sector to do the low rig count. As of Jan. 15, 2016, there 15 rigs in
operation. A year ago, there were 47.
"Revenues will continue to decrease for the state as horizontal production
drops," Watson said. "Horizontal wells produce a significant portion of the
overall production in the first year followed by a steep drop."
And beyond these immediate effects, he said some producing wells may be
closed if the operation costs begin to outweigh the revenue the well
"2016 may be a tough year for some companies with large debt forcing
layoffs and debt-restructuring or bankruptcy," Watson continued.
*photo h/t Tori Chilson / Pitchengine Communities*
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