What $60 Oil Means for Wyoming’s Economy and Energy Industry

Wyoming’s oil producers are holding steady amid a volatile global energy market, bolstered by promising developments in the Powder River Basin (PRB) and Mowry formations. According to the latest industry reports, the breakeven cost for shale oil production in these areas sits around $60 per barrel, positioning Wyoming as a higher-cost producer compared to other U.S. basins.

Despite mounting pressure from rising global supply and the risk of declining oil prices, companies continue to invest in semi-conventional zones with encouraging results. Analysts point to the Turner, Mowry, Parkman, and Teapot formations as areas of strong potential, though they caution that these resources lack the consistency and scale of more dominant oil plays like the Permian.

Industry experts warn that if oil prices remain between $55 and $65 per barrel, the pace of job completions could slow significantly, threatening employment levels and production output in Wyoming. Even so, the state has seen modest growth in rig activity in recent months, with operations in both the PRB and D-J basins staying relatively stable thanks to solid infrastructure and operator persistence.

WY It Matters

Wyoming’s economy is deeply interwoven with its energy sector. Oil development in the Powder River Basin fuels not just drill sites, but a network of local businesses. The state’s long-term competitiveness depends on stable market conditions, smart infrastructure investments, and effective policy. As noted in the previous article, the ongoing debate over the Rock Springs Resource Management Plan (RMP) could have a major impact on access to critical resources.

If restrictive land policies combine with low oil prices, Wyoming could face a one-two punch that slows economic growth, reduces public revenue, and shrinks the state’s business ecosystem. To thrive, Wyoming must continue striking a balance between regulation and opportunity, ensuring that energy producers can adapt and succeed in a rapidly shifting global landscape.