The Wyoming oil and gas industry is running more drilling rigs this week than at any time in the last six months.
Between November and May, the statewide rig count fluctuated from 14 to 16, according to Baker Hughes. Its climb to 18 as of Friday ties the highest documented rig count in the state since the start of the pandemic.
“I think we’ll continue to see some increases,” said Ryan McConnaughey, communications director for the Petroleum Association of Wyoming.
The collapse of oil prices in early 2020 prompted companies around the world to shut in existing wells and cut back on new drilling. And when the U.S. economy reopened, relatively abruptly, last summer, demand quickly outstripped supply.
Wyoming oil and gas companies’ interest in drilling increased as demand pushed oil prices up toward the end of 2021, and skyrocketed along with the price of oil in the months after Russia invaded Ukraine.
A year ago, U.S. oil benchmark West Texas Intermediate averaged about $68 per barrel. This week, it cost closer to $115 per barrel.
Companies’ uncertainty about investing in new wells under the Biden administration, which has angered industry by delaying its first onshore oil and gas lease sale by more than a year, faded as oil soared to its highest sustained price since 2014.
But despite the consistently high prices of recent months, supply chain issues and labor shortages have caused major slowdowns for new production.
“Qualified personnel remain hard to source as the industry ramps back up. Every aspect of the industry is looking for similar talent,” Bill DeGraeve, director of drilling for Casper-based True Drilling, said in an emailed statement.
True is currently operating one of Wyoming’s 18 active rigs, according to DeGraeve. The company plans to stand up another in the state this month — a more favorable situation than that of some smaller Wyoming operators, which have yet to secure a rig after searching for one for months.
The oil and gas industry is accustomed to the ups and downs of the markets it serves. Every bust shrinks the pool of available suppliers and laborers, and the inevitable boom strains what remains, often resulting in higher costs and longer wait times.
But this cycle, DeGraeve said, “is as severe as any in the past.”
PHOTOS: On the True Drilling rig
True Drilling Rig No.38
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Joshua Shells, the tool pusher, and Seth Zupanik, his manager, talk at True Drilling Rig No. 38 outside of Glenrock on March 18. Federal oil and gas leasing will resume in Wyoming and other states. However, the Biden administration scaled back the size of the sale and is increasing the royalty rate.
True Drilling Rig No.38
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Casey Jaure runs the the drill at the True Drilling Rig No. 38 outside of Glenrock on March 18.
True Drilling Rig No.38
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Victor Garcia and Richard Tucker work on True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Casey Jaure runs the the drill at the True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Victor Garcia and Richard Tucker work on True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 operates March 18 outside of Glenrock. A federal appeals court in New Orleans heard arguments Tuesday about whether President Joe Biden legally suspended new oil and gas lease sales because of climate change worries.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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The power breaker room at the True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik helps Dave True down during a tour at the True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik talks during a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Joshua Shells, the toolpusher, listens to a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik and Bill DeGraeve give a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik and Dave True give a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik gives a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik gives a tour of True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Victor Garcia and Richard Tucker work on True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Victor Garcia and Richard Tucker work on True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Richard Tucker marks pipes on True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 seen outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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True Drilling Rig No. 38 outside of Glenrock seen on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik talks about the drilling depth of True Drilling Rig No. 38 outside of Glenrock seen on Friday, March 18.
True Drilling Rig No.38
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Reporter Nicole Pollack walks tours the True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
True Drilling Rig No.38
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Bill DeBraeve looks at pipes that will be used for True Drilling Rig No. 38 on March 18 outside of Glenrock. Several factors have combined to cause the dramatic rise in the price of oil including Russia’s invasion of Ukraine.
True Drilling Rig No.38
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Pipes that will be used for the True Drilling Rig No. 38 outside of Glenrock seen on Friday, March 18.
True Drilling Rig No.38
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Seth Zupanik and Bill DeGraeve give a tour at True Drilling Rig No. 38 on March 18 outside of Glenrock. Some property owners in Wyoming don’t think oil and gas exploration on federal lands is working as it should.
True Drilling Rig No.38
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Seth Zupanik give a tour of the safety mechanism at the True Drilling Rig No. 38 outside of Glenrock on Friday, March 18.
