Official: Falling oil prices means more layoffs, possible bankruptcies in Wyoming

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 the state. 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 produces. "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* #buckrail #reboot #county10 #springcity #oilcity #dally #county17 #shortgo #bootstrapped #news