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OPEC, oil and Wyoming

CHEYENNE, Wyo. (Wyoming News Now) – OPEC will begin limiting oil production to two million barrels per day starting in November.

So what does this mean for us at the pumps and for Wyoming?

“To fix that, what we need to do is continue to produce our domestic oil and gas and be able to process it into products that we use at home. Because we don’t have to be beholden to the OPEC cartel and whatever they decide,” said Pete Obermueller, president and CEO of the Wyoming Petroleum Association.

OPEC officials say they want to curb oil and gas production because of the looming recession in order to control costs.

The easing of the US Strategic Mineral Reserve provided temporary relief. But U.S. refineries are now running at capacity, according to Obermueller.

Therefore, additional refining is not possible, and no new refineries have been built since the late 1970s.

Public land states, such as Wyoming, require federal approval to develop more oil sites on public land.

And federal lands also require more environmental reviews and higher standards than international providers.

With 26 Wyoming rigs currently in operation, the state’s producers want to do their part to stabilize prices and supply, which benefits the industry and all Americans.

“Each of these units has jobs and income dependent on the state. And as oil supply around the world is affected by the OPEC glut, hopefully that means we can build even more rigs, and we can help fill that void in Wyoming,” Obermueller said.

The lease of the land has also been done in the courts, which allowed a sale in 2022. Typically, there are four lease sales each year.

This issue will now go to the Supreme Court.

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