Report: Wyoming rig count rises, severance pay collections rise 75.6% in June amid high oil and gas prices
CASPER, Wyoming – High gas prices can be a pain for consumers at the pump, but it has also led to an increase in the number of oil and gas rigs operating in Wyoming as well as starting tax revenue for l ‘State.
The number of oil and gas rigs hit a low point in 2020 amid the COVID-19 pandemic, but has recovered to a total of 17 oil rigs and three gas rigs operating in the Wyoming in June 2022, according to the June 2022 issue of the Wyoming MACRO report released by the Wyoming Division of Economic Analysis on Tuesday.
Severance tax collections on all minerals in the state increased by $34.2 million in June 2022 compared to June 2021, an increase of 75.6%, according to the report. From April to June 2022, tax collections on severance pay increased by 43.8% compared to the same period in 2021.
Oil and gas jobs in Wyoming were about 8,100 in May, up 700 from May 2021, the report said.
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A backdrop to some of the trends in the oil and gas industry is the high price of natural gas and oil. In June, the price of natural gas at the Henry Hub averaged $7.67/MMBtu, $4.44 higher than in June 2021, according to the report. The price of West Texas Intermediate oil averaged $114.84 per barrel in June 2022, up $43.46 from June 2021.
According to the Economic Analysis Division, the 4% statewide sales and use tax in fiscal year 2022, which ended June 30, increased by 81 $.9 million compared to fiscal year 2021. Sales and use tax collections specifically from the mining sector increased by $27.4 million in fiscal year 2022 compared to fiscal year 2021, an increase of 57.5%, according to the report.
Statewide, employment saw an increase of 5,400 jobs in May 2022 compared to May 2021, according to the report. Casper saw an increase of 500 jobs and Cheyenne added 900 jobs in the year-over-year comparison from May 2022 to May 2021.
There is a range of other economic data included in the June 2022 Comprehensive MACRO Report from the Wyoming Division of Economic Analysis, including charts showing trends in economic data. The full report can be viewed by clicking here.