The Wyoming Oil and Gas Industry has Shaped Casper into the City it is Today! This video explores the history of the oil industry in Casper, Wyoming, affectionately known as “The Oil City.” Starting from the first oil discovery in the late 19th century to the significant oil discovery at Salt Creek in 1912, it outlines how the oil industry has shaped the economy and development of the city. The video also delves into the ups and downs of the industry, including the effects of the Teapot Dome scandal in the 1920s, the oil bust in the 1980s leading to a housing crash, and the impacts of the global financial crisis in 2008. The resurgence of the industry due to hydraulic fracturing technology (“fracking”) in 2013-2014, followed by another downturn due to falling oil prices and the COVID-19 pandemic, are also discussed. Despite these challenges, Casper has remained a significant producer of oil and natural gas, with the industry playing a pivotal role in the city’s development and the lives of its residents.
If you know anything about Casper, Wyoming, you probably know, that Casper’s nickname is the Oil city. So why is that? Hi, I’m Alisha Collins with the Alisha Collins Real Estate team.
I’ve called the Oil City Casper home for over 20 years now. Recently, I decided that you all should know more about the oil field and how it’s helped shape this city that I love. The history of the oil industry in Casper, Wyoming dates back to the late 19th century when oil, as we know it today, was first discovered in the area. This led to the establishment of the first oil wells here and drilling operations began soon after. However, it wasn’t until the early 1900s that the oil industry in Casper really took off. In 1912, a significant oil discovery was made at Salt Creek near Casper. This discovery led to a rapid increase in drilling activity in our area. Within a few years, the Salt Creek Oil field had become one of the largest producing oil fields in the United States. The development of the Salt Creek oil field made a significant impact on the economy of Casper and the surrounding area. The influx of workers, along with the revenue generated by the oil industry, helped to spur the growth of the town as well as a surrounding region. Today, over a century later, the Salt Creek Field is one of the longest continually producing oil fields in the world.
During the 1920s, Wyoming’s oil industry was faced with the Teapot Dome scandal, which involved bribery and the illegal leasing of federal oil reserves in Wyoming and California to private companies without the benefit of the competitive bidding. The history of the scandal really highlights the importance of the oil industry in Wyoming. In the decades that followed, the oil industry in Casper continued to expand. New oil fields were discovered and drilling technology continued to improve.
In the 1950s and ’60s, the discovery of natural gas in the area also contributed to the growth of the energy industry in Casper. Despite the ups and downs or boom and bust of the oil industry over the years, Casper has remained an important center for energy production in the United States.
The history of the oil field in Casper, Wyoming is a story of discovery, innovation and economic growth. From its humble beginnings in the late 19th century to its position as a major energy producer today, the oil and gas industry in Casper has played a crucial role in shaping the history and identity of this region of the United States. It hasn’t been all roses for the industry. In the 1980s, Wyoming experienced an oil bust that had significant impacts on the state’s economy. The state had relied heavily on oil production but a combination of factors including decreased demand and increased competition from other states led to a decline in oil prices. During this time, the price of oil dropped dramatically causing many oil companies to abandon their drilling operations in the state. As a result, Wyoming’s oil industry suffered greatly leading to widespread job losses and a decline in state revenue. The effects of the oil bust were felt for years to come. Residents suffered the effect in many ways including a housing crash.
The housing crash that happened in Wyoming in the 1980s was a result of several factors not just the oil industry. Factors, including overbuilding a decline in energy prices and a subsequent economic downturn. So during the late 1970s and early eighties Wyoming experienced a boom in the energy industry particularly in coal, oil and natural gas. This led to an influx of workers into the state and a construction boom with developers building new housing developments to meet the growing demand. However, as energy prices began to decline in the mid 1980s, the state’s economy took a hit and the demand for housing also decreased. Many of the workers who had come to Wyoming for jobs in the energy industry left the state leaving behind vacant homes and apartments. The oversupply of housing led to a decrease in property values and a rise in foreclosures which further depressed the housing market. The housing crash in Wyoming in the 1980s had a significant impact on the state’s economy with many construction companies and real estate developers going bankrupt. It also had a ripple effect on other industries such as retail and services, as people had less money to spend due to the economic downturn.
Of course, what goes down must come up over time. So oil prices came back up along with real estate prices. The price of oil had been steadily rising in the early 2000s peaking at around $147 per barrel in July of 2008. However, the global financial crisis which began in the fall of 2008, led to a sharp decline in oil prices falling to around $30 a barrel by December of that year. Oil prices went down by $117 a barrel within just a couple of months. This drop in oil prices had a ripple effect throughout the economy. The oil bust of 2008 had a significant impact on Casper and the surrounding area as well. Many oil companies scaled back operations and laid off workers. In turn, this had a significant impact on Casper, home to a number of major energy companies.
In the aftermath of oil bust, many businesses in Casper were forced to close. The unemployment rate in the region rose sharply. Thankfully, Casper and its residents got through this due in part to a strong, diversified economic base with industries beyond oil and gas such as tourism, healthcare and education also playing important roles. Many energy companies in the area had taken steps to reduce their debt and to improve their financial stability prior to the oil bust, helping to mitigate the impact of the downturn.
Many of these companies were able to survive and eventually recover. The oil bust of 2008 was a difficult period for Casper and the surrounding areas but the region has since rebounded. The oil and gas industries remain an important part of our local economy. A short time later, there was a significant event in the history of the oil industry in Casper. In 2013 and ’14, Wyoming experienced a boom in oil production thanks to the beneficial use of hydraulic fracturing technology or fracking, which allowed producers to extract oil from previously inaccessible shale formations. This led to a surge in drilling activity in the Powder River Basin, including the Casper area. As a result, in 2013, the state of Wyoming produced over 100 million barrels of oil, a record high for the state. This boom in oil production had a positive impact on the local economy with increased employment opportunities and a boost to state and local revenue. This period of growth in 2013 and ’14 highlighted both the potential benefits and the risks of energy development. The rapid increase in drilling activity led to concerns about the environmental impact of fracking as well as the potential for accidents and oil spills. Additionally, the boom in oil production was short-lived. Falling oil prices in late 2014 and early 2015 led to a significant decrease in drilling activity which led to a downturn in the local economy again.
The industry seemed to stabilize and was running pretty smoothly until 2020 when the COVID-19 pandemic and subsequent global economic downturn came along. This led to another sharp decline in the prices causing further challenges for the energy industry, impacting the local economy in Casper and the surrounding area.
These pivotal events through the years demonstrate the highs and lows of the oil industry in Casper from its early growth and development to the challenges and opportunities of more recent times. Today, the city of Casper and the surrounding areas are home to a number of major energy companies and the region continues to be a significant producer of both oil and natural gas.
Everywhere you go, whether it be the grocery store, the local bank or out for a neighborhood stroll, it is almost certain that someone you meet is connected in some way to the oil and gas industry. I think all of us in Wyoming are thankful in so many ways for what oil and gas has done for the development of our state. From the job it’s created to the many opportunities that have developed from the revenue our state has generated from education to infrastructure. From the statue that sits at the entrance of our city to public spaces that have benefited from the industry, oil and gas are woven into the entire existence of the city and state that I love.
I would love to hear what you think about this. Please be sure to like and subscribe and I’d love to know if you were affected by the oil and gas industry in some way. We always love to hear from you in the comments and the calls. And if you would like to find your home in Casper, Wyoming or anywhere in Wyoming, please reach out to us. My team and I have time for you and we cannot wait to meet you. Remember, we want you to love where you live. See you soon.