In December 2020, Kirkwood Resources purchased and paid for seven oil and gas leases on nearly 2,300 acres for $13,047.

It was just before President Joe Biden’s administration got on board.

These leases, along with dozens of other leases for which Wyoming’s oil and gas industry collectively paid $7 million, have yet to be released four years later, despite repeated requests from Kirkwood and others oil and gas companies involved.

The BLM told Kirkwood it could not issue the leases due to ongoing litigation surrounding the sale of the lease in 2020, a response that did not sit well with Wyoming’s oil and gas industry.

“The mining lease law says they have to issue a lease within 60 days of a sale,” Kirkwood Oil landowner Steven Degenfelder told Cowboy State Daily. “BLM holds more than $7 million in rental premiums without issuing leases, which are not subject to prosecution.”

Degenfelder, like many others in the oil and gas industry, has gone through their fingers and toes I just hope for a change from the Trump administration.

On Tuesday, their wish was granted when Donald Trump was elected for a second term.

“I hope that with the new administration this injustice can be righted,” Degenfelder said. “This is a real injustice. In my opinion, anyone who buys something, pays for it and doesn’t count on another four years to get it, there is something wrong with the bureaucracy.”

Leave the oil to me, Bobby

It didn’t take long for Trump to start talking about the oil and gas industry after he was announced the winner of the 2024 presidential election.

“I just said, but Bobby, leave the oil to me,” Trump told his supporters after being announced the winner, referring to Robert F. Kennedy Jr. who Trump said would be involved in his administration.

Kennedy is also a well-known environmental activist.

“We have more liquid gold than any other country in the world” Trump continued. “We have more than Saudi Arabia. We have more than Russia. Bobby, stay away from liquid gold. Other than that, have a good time, Bobby.

Although the comments do not address concrete policy issues that Trump might address during his second term, they make clear that he intends to strongly support the industry.

Trump also repeatedly promised throughout the election campaign that he would “drill, baby, drill” if he won.

“It’s going to be interesting to see,” Ryan McConnaughey, vice president of the Wyoming Oil Association, told Cowboy State Daily. “We’re still waiting on the results from the House, but it’s clear that a Trump presidency and Republicans taking back the Senate should be good news for Wyoming’s oil and gas industry. We are really delighted with it.

“And having people like Sen. (John) Barrasso leading the Senate should certainly be a good thing for the industry and a good thing for Wyoming.”

McConnaughey cited reducing federal oil and gas leasing as one of Wyoming’s big concerns.

“From the beginning, the Biden administration has stated that one of its goals is to eliminate drilling on federal lands,” he said. “And in Wyoming, where 75 percent of mineral lands are controlled by the federal government, that’s a concerning statement.”

Headwinds for Biden

Wyoming’s oil and gas industry has faced numerous headwinds under the Biden administration beyond reduced oil and gas lease sales.

The EPA, for example, announced new rules aimed at reducing emissions from oil and gas wells. These included a ban on routine flaring of new wells as well as comprehensive monitoring of methane leaks and changes to equipment standards that increased the cost of doing business for the industry.

The SEC, meanwhile, is working on final versions of new rules that will require climate-related disclosures, including emissions reporting.

These are expected to be released this year and aim to cut off the flow of capital that fossil fuel companies need to operate.

The Biden administration also rolled back Trump’s simplified 2022 permitting regulations, which aimed to speed up infrastructure projects such as oil and gas pipelines and LNG plants, removing some of the red tape and obstacles they faced.

And a series of tax credits for renewable energy, as well as things like electric vehicles, were also approved under the Biden administration.

To the extent that these measures encourage more people to buy electric cars, they reduce overall demand for oil and gas.

Lack of details

So far, Trump hasn’t had many details about what he plans to do on each of these particular policy points, although his previous administration may be a starting point to get an idea of ​​what steps he will take. he could take.

Rob Godby, an energy economist and associate professor at the University of Wyoming, said he expects Wyoming’s oil and gas industry to be optimistic about reducing or eliminating restrictions such as those on federal leases and others, as well as other measures which he did not like.

“But that’s all we can really say at the moment, given that there is virtually no concrete policy,” he said. “There are no directives regarding changes in the organization. The Biden administration’s policies could be reversed, and (the oil and gas industry) hopes they will be.

Other measures that Godby says seem likely in a Trump administration are removing incentives and subsidies for renewable energy.

“Some said he could ride rolling back electric car mandates, or potentially lowering fuel efficiency standards for vehicles that essentially required some degree of electrification in the fleet.

And, of course, climate change regulations would likely be very different under a Trump administration, Godby said.

“They were much more skeptical about climate change regulations,” he said. “EPA’s efforts to control greenhouse gas emissions have therefore taken a radically different approach.”

But the administration was still required through the legal system to take at least some actions related to climate change under the Clean Air Act, Godby added.

“The devil is in the details of what the Trump administration…is doing in its climate change policy,” Godby said. “And it’s too early to talk about it.”

Market forces could even prevail over Trump

One thing Godby has seen is great optimism in coal countries that a Trump administration will help them.

But the situation is more complex than presidential politics.

“I suspect that coal interests in (Wyoming’s Powder River Basin) and throughout the state are probably optimistic that leasing restrictions there can be overturned,” he said . “But I would add to that reflection that it must be recognized that there have not been any new coal leases in the Powder River Basin since, I think, 2012. Well before that, and during the first administration Trump, there have been no new coal leases. rental contracts. »

According to Godby, the reason is largely due to market forces and not presidential policies.

“In the coal industry, things have been difficult simply because of cost conditions and alternative technologies,” Godby said. “Market conditions have been very difficult for coal, regardless of regulation. »

And anything Trump does to help with natural gas supplies could put additional pressure on the coal industry, Godby added.

“Natural gas is a substitute for coal,” he said. “And it is often a chapter choice in the electricity generation market than coal. Ironically, any opening of additional gas and oil reserves could actually hurt the coal industry if it reduces natural gas prices and increases natural gas production.

Trump would not be the first president to run up against market forces. her goals.

For example, Biden, despite all the obstacles he has placed in the way of oil and gas, has struggled to actually cut production. Instead, U.S. oil production reached a new high under his administration, reaching more than 13 million barrels per day.

Much of this is due to market trends, which can often thwart the best intentions, especially when it comes to commodities that are set to sink or swim in a global market.

Renee Jean can be reached at [email protected].