A Permanent Leasing Ban Would Be Devastating for Wyoming

A Permanent Leasing Ban Would Be Devastating for Wyoming

March 5, 2021

The oil and gas industry continues to suffer under President Biden’s administration and their recent executive orders. Wyoming specifically is feeling the effects of the overreaching orders enacted by President Biden. On Thursday, the University of Wyoming published a study on how a permanent drilling ban would affect the state’s economy and energy industry.

The UW study concluded a potential permanent ban on new leasing for oil and gas development could have “significant potential impacts” on Wyoming’s economy and result in lower oil and gas production nationwide.

The UW Study concluded that “declines in state revenues associated from oil and gas production could reach over $600 million per year by 2040.”

This study was conducted in response to Wyoming’s Governor Mark Gordon (R) issuing an executive order last month directing Wyoming state agencies to investigate the financial impacts of Biden’s ban on new sales of oil and gas leases on federal lands, and what legal options Wyoming has to respond to the Biden administration.

The federal government manages about 68% of Wyoming’s minerals and 47% of its surface land. In other words, the Interior Department owns a disproportionate amount of Wyoming’s natural resources.

Governor Gordon discussed the attack Biden’s executive order would have on Wyoming, “Losing that revenue is devastating to our schools, devastating to our communities, devastating to those small businesses that really depend on the energy sector.” 

We applaud Governor Gordon’s initiative in researching the effects Biden’s executive orders will have on his state and his constituents. It is clear these executive orders and the potential of a permanent drilling ban will have significant impacts on Wyoming and other energy-rich states who rely heavily on the jobs and revenue the energy sector brings in to fund schools, hospitals, and other vital infrastructure projects.