Continuing Limits On Oil Supply May Help Wyoming

May 17, 2017

Oil prices have shot up in the U.S. after Russia and Saudi Arabia announced they would continue limiting supply of petroleum to the global market. They’re the two largest oil exporting nations.

Higher oil prices should increase production temporarily in Wyoming. Right now, production in the state is down 14% compared to last year. 

Bruce Hinchey, President of the Petroleum Association of Wyoming, said he doesn’t think the surge will be long lasting. All nations within the Organization of Petroleum Exporting Countries, or OPEC, would have to also limit supply for a long-term oil price increase.    

He said, “They might agree to it and later on decide that they need more money and then they just start pumping out more oil. That’s the thing we’ve seen in the past, but maybe this time it won’t happen.” 

Hinchey said if prices do remain higher, then Wyoming producers may start drilling more and that could increase production long-term.