Energy

Wyoming’s mineral taxes make a story of personalities. Democrat Ernest Wilkerson reintroduced mineral severance taxes to Wyoming politics when he ran for governor in 1966. Republican Stan Hathaway defeated Wilkerson, but eventually presided over enactment of a severance tax and a permanent minerals fund, vastly stabilizing Wyoming’s financial future.

The Powder River Basin coal-bed methane boom in the early 2000s stirred controversies over land rights, mineral rights, environmental stewardship, the disposal of water and—at every turn—politics. Now, few of the 29,000 wells drilled produce much gas and around 3,000 wells are abandoned and left to the state to clean up. 

Oil refining in Wyoming began in 1895. By the 1920s the state boasted 16 refineries, with Standard Oil’s plant at Casper by far the largest. Production tracked oil booms and busts throughout the 20th century, culminating in the 1991 shutdown of Casper’s Amoco (formerly Standard) Refinery. Six refineries remain in production today.

1970s amendments to the Mineral Leasing Act of 1920 boosted the share of federal mineral royalties flowing to Wyoming and other oil-rich states while preserving the original act’s aim to balance production incentives with conservation—thanks in part to some shrewd maneuvering by Wyoming’s congressman, Teno Roncalio.

Cheyenne’s M.H. “Bud” Robineau scrambled to put together the deals enabling construction during World War II of an airplane-fuel plant next to the Frontier Refinery he owned. Help from U.S. Sen. Joseph O’Mahoney proved crucial in cutting wartime red tape. The plant came online in 1944 and continued to produce high-octane fuel after the war.

If wells are the hearts, pipelines are the arteries of the oil business. Since the first line was laid 45 miles from the Salt Creek Field to Casper refineries in 1911, the pipeline business has grown steadily in Wyoming, transporting our hydrocarbons to local and world markets.

Recurring oil theft on the Wind River Reservation in the 1970s eventually led to better practices that focus on preventing such losses and protecting American Indian tribes’ oil and gas revenues. 

The highly controversial ETSI coal slurry pipeline, proposed in the 1970s to move millions of tons coal from Wyoming’s Powder River Basin to power plants Oklahoma, Arkansas and Louisiana, was never built, due to falling 1980s energy prices and stiff opposition from railroad companies.

Rural electrification brought welcome changes to farms and ranches throughout Wyoming in the 1930s and 1940s, despite numerous early challenges—including opposition from existing utilities— that threatened to thwart the effort.

Natrona County’s Salt Creek Field is best known of Wyoming’s early oil fields, but five others—two in Park County and one each in Hot Springs, Niobrara and Converse counties—played important roles in the state’s 20th century transformation from an agricultural to an industrial economy.