Last Updated: June 20, 2024

Overview

Wyoming is a major producer of coal, crude oil, and natural gas—the fossil fuels that were created from the remains of life in the ancient seas that covered the state many millions of years ago.^1,2,3 Wyoming has the smallest population of any state, less than 600,000 people, and only Alaska has fewer residents per square mile.⁴ The state produces 12 times more energy than it consumes, making it the third-biggest net energy supplier among the states after Texas and Pennsylvania.⁵ Wyoming is the nation's largest coal-producing state. It also has more oil and natural gas producing leases on federal lands than any other state.^6,7

Wyoming's lowest elevation is more than half a mile above sea level, and its mountain peaks are more than two miles high. The state's mountains, which form part of the Continental Divide, channel weather—and often fierce winds—across wide plains. The high elevations give Wyoming a cool climate overall, but temperatures can be extreme. The state's record high is 116°F in Basin in north-central Wyoming in 1983, and the record low is 66°F below zero in Yellowstone National Park in 1933.^8,9 National parks, including Yellowstone and Grand Teton, and national monuments like Devils Tower and Fossil Butte, as well as the Wind River and Bighorn mountain ranges, help make tourism one of Wyoming's major industries.¹⁰

Coal mining and crude oil and natural gas extraction are major contributors to Wyoming's gross domestic product (GDP) and tax revenue.^11,12 Mineral royalties, severance payments, and related taxes typically provide a substantial portion of state revenues.¹³ Although less than one-tenth of the energy produced in Wyoming is consumed there, the state's small population and energy-intensive fossil fuel production help make Wyoming fourth in the nation with the highest per capita energy consumption and give it the second-most energy-intensive state economy, after Louisiana.^14,15,16 Wyoming's industrial sector accounts for almost three-fifths of the total energy consumed in the state. The transportation sector consumes about one-fifth, and the commercial and residential sectors each account for about one-tenth.¹⁷

Coal

Wyoming holds about one-third of U.S. recoverable coal reserves at producing mines.¹⁸ The state has led the nation in coal production since 1988 and accounts for two-fifths of all coal mined in the United States.^19,20,21 After increasing for two years in a row, Wyoming's annual coal production declined in 2023. The state's coal output is down nearly two-fifths since 2015, as U.S. coal-fired power plants shut down and natural gas-fired and renewable-sourced electricity generation increased.^{22,23,24,25,26}

Wyoming has 10 major coal fields and 8 of the 10 largest coal mines in the nation.^27,28 Coal is mined primarily in the northeastern part of the state in the Powder River Basin.²⁹ Seams of the low-sulfur coal, some more than 100 feet thick, lie at shallow depths, allowing large-scale mechanized surface mining in the state. Nearly all the coal mined in Wyoming is subbituminous, which has a lower heating value than other types of coal and is used mainly at power plants. The state accounts for almost nine-tenths of all U.S. production of subbituminous coal.^30,31,32 Wyoming also produces a small amount of bituminous coal.³³ Coal mining began in the state in the mid-1860s when the Union Pacific Railroad arrived.³⁴ Today, most of the mined coal in Wyoming is loaded onto unit trains, which can stretch up to a mile-and-a-half long with about 130 coal cars.³⁵ Wyoming's coal is shipped to more than half the states, and power plants in Texas, Missouri, Wyoming, and Illinois are the biggest users of Wyoming's coal.³⁶ Very little of the state's coal is exported to other countries.³⁷

Petroleum

Wyoming holds about 2% of U.S. proved crude oil reserves, and the state is the eighth-largest crude oil producer, accounting for 2% of the nation's total crude oil output.^38,39 Wyoming is crossed by pipelines bringing Canadian and Rocky Mountain crude oil to refineries in the Rocky Mountain and Midwest regions. Pipelines also ship refined petroleum products to markets in those regions.^40,41,42 The state has four operating petroleum refineries that can process 126,000 barrels of crude oil per calendar day, providing about one-fifth of the refining capacity in the Rocky Mountain region that includes Colorado, Montana, and Utah.⁴³ Wyoming's refineries produce motor gasoline, diesel fuel, jet fuel, and other petroleum products from the state's crude oil and can also process Canadian heavy sour crude oils. Those refineries deliver most of their petroleum products to neighboring states.^44,45,46,47 In 2020, the owners of the 48,000 barrel-per-day refinery in Cheyenne shut down the petroleum facility and converted it to produce renewable diesel.⁴⁸

Wyoming has the fifth-lowest petroleum consumption among the states. However, because of its small population, high vehicle miles traveled, and large energy-intensive fossil fuel extraction industries, Wyoming has the fourth-highest per capita petroleum consumption by barrels, after Louisiana, Alaska, and Texas.⁴⁹ The transportation sector consumes about three-fifths of the petroleum used in Wyoming. The industrial sector accounts for most of the rest at about three-tenths, and a small amount is used in the state's commercial and residential sectors.⁵⁰ Wyoming drivers have the highest per capita gasoline expenditures, which reflect the state's small population, less access to alternative forms of transportation, and high vehicle miles traveled.⁵¹ Wyoming does not require ethanol to be blended into its gasoline, although most gasoline sold throughout the state and the rest of the United States contains at least 10% ethanol.^52,53

After reaching its highest level in 30 years in 2019, Wyoming's crude oil production fell sharply in 2020 and 2021 in response to the drop in petroleum demand and crude oil prices during the COVID-19 pandemic. The state's crude oil production increased in 2022 and grew even higher in 2023 to 266,000 barrels per calendar day, close to 2019's output level.^54,55,56 Crude oil and natural gas production is spread across the state, and each fossil fuel is produced alone or together in 21 of Wyoming's 23 counties.⁵⁷ However, about three-fifths of Wyoming's crude oil production comes from two counties, Converse and Campbell, located in the Powder River Basin in the northeastern corner of the state.^58,59,60 Southwestern Wyoming overlies part of the Green River oil shale, which is a formation rich in kerogen-an organic material found in some sedimentary rocks that can be converted into petroleum liquids when heated. Green River, by some estimates, could be a large source of petroleum if technology were developed to extract the petroleum economically.^61,62,63,64

Natural gas

Wyoming ranks among the top 10 states in both natural gas reserves and marketed natural gas production.^65,66 Most of the state's natural gas production is on federal lands leased by energy companies.^67,68 Production takes place throughout the state, but about half of Wyoming's natural gas comes from fields in Sublette County in the Green River Basin, located in the state's southwest corner.^69,70,71 Wyoming has 16 of the nation's 100 largest natural gas fields, including the Pinedale and Jonah fields that rank among the top 10.⁷² Although natural gas exploration has expanded across the state, including into the Powder River Basin, Wyoming's marketed gas production has decreased by more than half from its 2009 peak and has declined every year since then. In 2023, the state's marketed natural gas output fell below 1 trillion cubic feet for the first time since 1999, due mainly to fewer new wells drilled.^73,74,75 In 2018, the federal government approved a large natural gas project in the basin that would drill 3,500 wells over 10 years.^76,77,78 The state imposed requirements in 2019 to control the emissions from natural gas drilling to help improve air quality.^79,80

Wyoming is the fourth-largest producer of natural gas from coal beds, behind Colorado, New Mexico, and Virginia, but the state's production has steadily declined since its peak in 2009.⁸¹ Coalbed methane accounts for about 5% of the state's natural gas production.⁸²

Most natural gas produced in Wyoming leaves the state through interstate pipelines that cross into Utah, Nebraska, Colorado, and Montana, on its way to both Midwest and West Coast markets.^83,84 Several interstate pipelines converge at Opal, Wyoming, a major interstate natural gas trading hub.^85,86 Some of the natural gas that remains in the state is placed in underground storage. Wyoming has eight natural gas underground storage sites that can hold a combined 156 billion cubic feet of gas, which is almost 2% of U.S. total storage capacity.^87,88

Wyoming's natural gas consumption is equal to about one-tenth of the state's natural gas production.^89,90 Almost two-fifths of the state's natural gas consumption is used in the production, processing, and distribution of natural gas. The state's industrial sector accounts for about one-third of natural gas use, and the residential, commercial, and electric power sectors together account for about one-fifth. A minor amount of natural gas is consumed as vehicle fuel in the transportation sector.⁹¹ Natural gas is Wyoming's most widely used home heating fuel, found in 6 out of 10 households.⁹²

Electricity

In 2023, coal-fired power plants produced about 71% of Wyoming's total electricity net generation, down from its peak of 97% in 2003, but still the second-highest share of electricity from coal in any state after West Virginia. Wind power has more than doubled since 2019 and provided 21% of the state's generation in 2023, which was the 12th-highest share of wind power among the states. Natural gas-fired generating units, hydroelectric facilities, generators fueled by other gases, and solar power accounted for most of the rest of Wyoming's in-state electricity supply.^93,94

Wyoming's small population contributes to it being among the 10 states with the lowest total electricity demand, but it has the second-highest per capita electricity use after North Dakota.⁹⁵ Wyoming sends about three-fifths of the electricity it generates out of state.⁹⁶ Several major interstate transmission line projects are in development to carry more electricity supplies from Wyoming to western population centers.⁹⁷ Within Wyoming, the industrial sector was the largest electricity consumer in 2023, and accounted for three-fifths of the electricity used in the state. The commercial sector was second and consumed just over one-fifth of the state's electricity, and the residential sector accounted for slightly less than one-fifth of power demand.⁹⁸ Almost one out of four Wyoming households relies on electricity as the primary heating source.⁹⁹ In 2023, Wyoming had the lowest average electricity price.¹⁰⁰

Wyoming currently does not have any nuclear power generation, but a next-generation nuclear power reactor is planned at a retiring coal-fired power plant in Kemmerer, located in the southwest corner of the state. The 345-megawatt reactor would be cooled with liquid sodium instead of water. Construction of the reactor is scheduled to begin in the summer of 2024 and it is expected to be completed in 2030.^{101,102,103,104} Wyoming has the largest U.S. reserves of uranium ore that provides the fuel used by nuclear power plants.^105,106 In recent years, Wyoming's uranium production has come from several operating in-situ recovery plants that extract uranium from underground by dissolving the ore with a solution and pumping it to the surface where the uranium is recovered.^107,108,109 However, with uranium prices higher and a U.S. ban in May 2024 on Russian uranium imports, conventional uranium mining is restarting in Wyoming and other states.^{110,111,112,113}

Renewable energy

In 2023, renewable energy sources were used to generate 23% of the electricity in Wyoming, with wind power accounting for about nine-tenths of the state's renewable electricity.¹¹⁴ Wyoming has some of the greatest wind resources in the nation, especially in the southeastern corner of the state.¹¹⁵ Sustained winds are funneled through the state's mountain passes and out across the high prairie, which enables Wyoming wind farms to operate at high capacity levels.^116,117 At the end of 2023, the amount of wind powered-generating capacity installed in Wyoming totaled about 3,100 megawatts. Another 845 megawatts of capacity is scheduled to come online at the end of 2024.¹¹⁸ Several more large wind power projects are in development or under construction, including the 3,000-megawatt Chokecherry-Sierra Madre project with about 900 turbines in south-central Wyoming that will be completed in several phases during 2027-29.^119,120,121 There are several planned large transmission projects in Wyoming to transport the state's wind-generated electricity to other states, including California, that have significant renewable energy requirements.^{122,123,124,125}

Hydroelectric power accounted for about 7% of Wyoming's renewable generation in 2023.¹²⁶ The state has 16 hydropower dams. Most of Wyoming's hydroelectric generating units are relatively small, more than 70 years old, and owned by the federal government.¹²⁷

Wyoming has significant solar resources, but there was little utility-scale solar generation in the state until 2019. Almost all the state's solar generation comes from the 92-megawatt Sweetwater Solar farm, which came online at the end of 2018 and is the state's only utility-scale solar power facility.^128,129 That large solar power farm and many customer-sited, small-scale (less than 1 megawatt) solar panel systems on residential rooftops together provided about 2% of the state's renewable generation in 2023.¹³⁰

Wyoming's geothermal resources are used for direct heating applications, mainly in Yellowstone National Park and Hot Springs State Park. Geothermal energy is also used to heat buildings, water, and some roadways in the state.^131,132 Wyoming does not have adequate geothermal resources for commercial electricity generation, but the state does have buildings heated by geothermal heat pumps.^133,134

Wyoming does not have a renewable portfolio standard (RPS) or other requirement or goal to have a certain amount of the state's electricity generated from renewable energy sources.¹³⁵ However, the state has net metering for residential, commercial, and industrial customers with renewable energy generating systems smaller than 25 kilowatts. Eligible renewable generating systems include solar panels, wind turbines, biomass-fueled generators, and small hydroelectric generators.¹³⁶

Energy on tribal lands

Wyoming's Wind River Reservation, home to both the Northern Arapaho and the Eastern Shoshone tribes, is the seventh-largest Native American reservation in the United States at more than 2.2 million acres (about 3,500 square miles). It is Wyoming's only reservation and occupies most of the Wind River Basin in the west-central area of the state.^137,138,139

The Wind River Reservation has produced crude oil and natural gas for well over a century.¹⁴⁰ The state's first oil well was drilled in the Wind River Basin in 1884, south of the reservation's boundary.¹⁴¹ About a half century later, several oil seeps were discovered within the reservation, and crude oil and natural gas production on tribal lands followed.¹⁴² Most current crude oil production occurs in the western half of the reservation, while most natural gas production occurs in the eastern half.^143,144 In 2012, the Wyoming tribes and the federal government reached a settlement to resolve underpayment of royalties owed on crude oil and natural gas production from reservation land. The settlement included a $157 million payment to the tribes.^145,146 In January 2023, the two tribes reclaimed control of the Steamboat Butte oil field near the reservation's border after not renewing the lease of the field to a private company.¹⁴⁷ The tribes took similar action to reclaim control of the Circle Ridge oil and natural gas field in June 2021, after the expiration of a 20-year lease with a different private energy company. The tribes reached a settlement with the energy company at the end of 2023 over the value of the equipment left behind.^148,149,150

There are two utility-scale electricity generating facilities on the reservation. Both are hydroelectric dams; one has a generation capacity of 17 megawatts and the other is 1.6 megawatts. They are owned and operated by the U.S. Bureau of Reclamation.¹⁵¹ In April 2024, the Northern Arapaho sought federal tribal funding to pay for a solar-powered microgrid and provide weatherization and energy efficiency improvements for homes on its reservation.¹⁵²

The Wind River Reservation has significant wind energy resources for potential electricity generation, especially along the mountain ridges that border the reservation.^153,154 Several areas of the reservation were evaluated for wind projects that could give the two tribes additional sources of energy.¹⁵⁵ The Wind River reservation is also one of the top 15 reservations in the nation with the best potential to generate electricity from solar energy resources.¹⁵⁶

Endnotes

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⁴ World Population Review, U.S. States-Ranked by Population 2024.
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