Wyoming News Exchange

Wyoming oil and gas industry shrugs at price shocks as state welcomes new commissioner
 
By Camille Erickson
Casper Star-Tribune
Via Wyoming News Exchange
 
CASPER — Plunging oil prices and a hefty loss of energy shares made for a bruising Monday last week for those involved in the nation's shale business. But many in Wyoming also chalked up the volatility to just another week in the crude world.
West Texas Intermediate, the U.S. benchmark, plummeted by over one-third to $27.34 a barrel on the evening of March 8 — that's half of what it was at the beginning of the year. 
On Tuesday, still reeling from a tumultuous day, dozens of operators, expert witnesses and attorneys filed into the Oil and Gas Conservation Commission for the monthly hearing. As the meeting commenced at 9 a.m., Supervisor Mark Watson immediately addressed the elephant in the room.
“For all the young people out there: These things happen,” Watson said in reference to the plummeting oil prices. “... The sun comes up and we go on. So, don’t worry too much."
Not long ago, in February 2016, West Texas Intermediate fell below $28 per barrel. In other words: Last week was seen by some as business as usual. When it comes to the commission's monthly hearings, business as usual means show cause hearings, flaring requests and contested case hearings. 
"There is price volatility, but it always calms itself down," said Howard Cooper, president of Three Crown Petroleum LLC. "Prices will be coming back, they always recover and in the long run, everything looks fine."
According to some analysts, it will take time to recover, but market recovery will happen, with oil prices likely inching up again over the course of several weeks. (West Texas Intermediate hovered around $31.50 a barrel on Friday, crawling ever-so-slightly up throughout the day).
In other news, the oil and gas regulatory body welcomed a new commissioner, professional geologist Jimmy Goolsby of Goolsby Finley & Associates LLC, at its Tuesday hearing. He comes to the position with over four decades of experience contributing to Wyoming's oil and gas sector.
“We are more than excited to have Jimmy serve as a Commissioner,” Watson said in a statement. “His understanding and depth of knowledge will serve the state and the citizens of Wyoming well. We are fortunate to have this level of expertise in a Commissioner.”  
Former commissioner professional geologist Mark Doelger of Barlow and Haun served in the role for over seven years, the longest oil and gas commissioner to serve in Wyoming's history, according to Watson.
"I remember first meeting Mark and having an enormous amount of respect for Mark," Gov. Mark Gordon said during February's commission hearing. "Just his sound wisdom and his calm manner of dealing with things."