CHEYENNE, Wyo. — Wyoming’s oil industry saw an odd divergence last summer: Oil production soared to a 23-year high while drilling for new oil fell to a 16-year low.
Experts say the trend can’t last. They say with little new drilling, it’s just a matter of time before oil production follows suit and declines, too.
And they warn Wyoming’s economy will feel the effects of less oil, in addition to the rig crews that already have packed up and moved out.
The problem is oil prices are down by about half compared to last year.
Economics professor Rob Godby at the University of Wyoming says some companies are producing at a loss to pay down debt. He says state officials are bracing for the revenue hit that will eventually happen after production declines.
This article was written by Mead Gruver from The Associated Press and was legally licensed through the NewsCred publisher network.