Fuel prices could undercut Wyoming's energy economy

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buy this photo Jeremy Naber, a driver for Domino's Pizza on East First Street in Casper, walks to his car with several pizzas to deliver at lunchtime on Thursday. High fuel costs are squeezing the incomes of those who drive for a living, causing the three Domino's locations in Casper to contemplate a sliding rate instead of a per-mile fuel compensation system. Photo by Kerry Huller, Star-Tribune.

Hey, pizza lovers. Are you tipping your pizza delivery person generously? Those pump prices are squeezing incomes for anyone who drives for a living.

"We're looking at almost doubling (fuel compensation)," said Tara Scott, manager of the Domino's Pizza on First Street in Casper.

Scott said high fuel costs have driven the three Domino's locations in Casper to contemplate a new sliding rate instead of a per-mile fuel compensation system.

Continued high gasoline and diesel costs are stressing all areas of Wyoming's economy. In fact, some companies driving Wyoming's energy-based economic boom may not be able to absorb the sky-high prices for long. And there seems to be no real relief in sight.

"It's not good. The one thing making the economy boom here in Wyoming is the same thing that will force folks to go out of business," said J.B. Stuart of Stuart & Son Trucking in Casper.

Changing to more fuel-efficient fleets isn't a near-term option for most businesses here. Stuart said a federal fuel tax holiday might save a few bucks, but what happens when the holiday ends? National freight carriers can apply a fuel surcharge to help weather high prices, but most small trucking businesses in the oil and gas industry are stuck with the fuel bill.

All Stuart can do for any relief at the pump is slow down.

"Five years ago, 25 percent of gross (overhead) was fuel. Now, it's probably 33 percent of gross. It's going to break a lot of people if it continues," he said.

Wyoming's oil and gas economy is usually regarded as a silver lining to high oil prices. But Gov. Dave Freudenthal this week expressed concern that increased revenues from oil and gas production don't move directly from state coffers to citizens' pocketbooks.

Freudenthal said any oil price over $85 per barrel might do more harm than good for the economy, particularly if the prices stick around for long.

A University of Wyoming economist said despite the call for immediate action within the D.C. beltway, there's little Americans can do but cut back on the volume of fuel they use.

"Unfortunately, it's very likely we will see gas prices up to $4 per gallon by the end of the summer," said Rob Godby, professor and chairman of the University of Wyoming Department of Economics and Finance.

Energy reporter Dustin Bleizeffer can be reached at (307) 577-6069 or dustin.bleizeffer@trib.com.

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