Interview and notes by Content Correspondent Genneca Houser
Recently, we got to have a conversation with Mark Watson, the Supervisor for the Wyoming Oil and Gas Conservation Commission. We discuss some projects from this past year including a look into the Orphan Well Program and the Energy Rebound Project. We talk about the impacts of COVID-19 regulations, the possibility of new regulations, the possible effects of the new administration, and a look into what recovery may have in store for Wyoming Oil and Gas.
1:00 – We begin with a short introduction of Mark Watson and his position at the Wyoming Oil and Gas Conservation Commission.
1:50 – Mark shares a brief overview of the WOGCC and how they are self-funded. He also shares some introductory information regarding the Orphan Well Program and the Energy Rebound Project.
“You know, it kept a lot of people employed and these companies know that we still have maybe 1500 more wells to plug. So, you know, they’re going to stay busy for the next couple of years…” – Mark Watson talking about the Orphan Wells Program (6:44)
7:20 – Mark shares the low point in production over the last year. He takes a moment to explain a couple of the main factors contributing to the decline leading to 3 days of a zero rig count in August.
9:17 – Mark shares his take on what the foreseeable future looks like in terms of recovery for the oil and gas industry.
“Once you get airlines back and people traveling again, that’s when we’ll start using hydrocarbons again and you’ll start to see the price, probably fall of 2021you know things will starts blowing back up…” – Mark Watson (9:40)
10:50 – Covid has changed a few things in the oil field as well; Mark talks a little bit about the precautions companies may be taking to keep people healthy. There’s also a look into the possibility of more “green” regulations in Wyoming, and wariness in the industry due to the impending new administration.
“We’re just trying to get through this era and we can worry about new regulations in the future.” – Mark Watson (11:59)
13:50 – Mark talks about the industry as Wyoming’s “bread and butter” and how they’ll be pushing to get back to work with the budget shortfalls. Plus, a quick look at how lifting the Commission Tax from April until September affected the industry and workers.
“If we basically cancel the conservation tax for six months it affects everybody from the biggest to the smallest company.” – Mark Watson (14:53)
15:39 – Mark talks about how our wells are coming back; the rig count is up to 6 right now. Most are horizontal wells. So, we talk a bit more about the growing of popularity horizontal wells and a short history on how horizontal wells began. We also talk a little bit about the possibility of horizontal wells being an issue in the future when it comes to plugging them off when they are no longer economical.
“If you have a good reservoir and the price is right, companies are gonna’ drill.” Mark Watson (16:11)
20:28 – Mark gives a comparison of how many conventional wells are in Wyoming versus unconventional, or horizontal wells. Mark then goes on to talk a bit about logistics when it comes to handling who and how wells get plugged whether it’s private, state, or federal minerals being drilled.
“The industry is pretty resilient and they always come back. It’s just a matter of how long it takes.” – Mark Watson (22:50)
For more information, follow these links:
Wyoming Oil and Gas Conservation Commission – http://wogcc.wyo.gov/
WOGCC Presentation for Powder River Basin Section of SPE
Energy Rebound Program Press Release
Spread the word. Support the industry. Share the energy.
If you have a chance, check out The Crude Life Podcast!
