The Center for Energy Regulation and Policy Analysis (CERPA) at the University of Wyoming’s School of Energy Resources (SER) released a new “Issue Snapshot” paper covering state oil and natural gas severance taxes.
Part of a resource series on the CERPA website, these mini-papers provide concise overviews of various topics.
Authored by Esther Wagner, a senior research professional at CERPA, the latest Issue Snapshot examines Wyoming’s fiscal reliance on mineral wealth compared to other major energy-producing states.
“As the nation’s seventh-largest oil producer and 10th-largest natural gas producer, Wyoming’s economic health is inextricably linked to severance taxes recovered from those extractive industries,” says Wagner. “Over the years, oil and gas have become more prominent in that revenue distribution, so we wanted to bring that to the forefront of discussions on severance tax structures and how they are implemented across the nation.”
Looking at revenue from 2024, a key finding in the document showed that oil and natural gas production accounted for approximately 77% of all severance taxes collected from the state’s mineral extraction, highlighting the significant role of hydrocarbons in funding public services.
Additionally, the report details the tax structures of all states with oil and/or natural gas production, providing the data needed to evaluate how Wyoming’s tax policy influences its ability to attract energy investment.
“This snapshot allows us to see exactly where Wyoming stands in the national context and serves as an educational tool for understanding the competitive energy landscape,” said Matt Fry, director of CERPA. “By understanding the various levers used across different states, we can better navigate the complexities of tax comparisons, which can often be misleading when viewed in isolation.”
To download the report and other resources released by CERPA, visit the Publications tab on the CERPA website at www.uwyo.edu/cerpa.
