cmathews@wyomingnews.com

CHEYENNE - Due to the increasing global demand for its energy resources, Wyoming's economy performed second best in the nation last year, officials say.

The increase in employment opportunities, vigorous natural-gas production, a consistent low housing foreclosure rate and a mining industry powerhouse led the way. But all industries are expanding due to the booming energy sector.

"Clearly the mining sector, such as wholesale trade, construction and transportation, has had a tremendous increase," said Wenlin Liu, senior economist with Wyoming's Economic Analysis Division. "We are seeing monumental growth."

The tapering off of drilling activities for coal bed methane, a lack of qualified workers and wildlife concerns have combined to stifle the state's growth rate to stifle a bit, Liu said.

But by May this year, the number of non-farm wage and salary jobs in Wyoming grew 3 percent over May in 2006. Job expansions occurred in nearly all industries last year, with mining continuing to lead.

The slowing down of Wyoming's growth rate is particularly related to the constraints of the pipeline capacity, Liu said.

But Kinder Morgan's Rockies Express Pipeline, which is expected to be completed sometime in the next three years, will open up an important new market opportunity in the state.

The demand for energy around the globe has kept natural-gas production strong. The state's high-paying energy related jobs, such as electricians, will continue to push strong wage and income growth.

"The economy is booming in a lot of different sectors," said Cara Eastwood, press secretary for Gov. Dave Freudenthal. "A lot of people in the state have better jobs than they've had in a very long time."

Eastwood said there are challenges that come with growth, such as finding sufficient housing for workers across the state.

That is the biggest issue, she added.

The Wyoming Department of Corrections recently announced that it is looking to build 50 new units in Rawlins that would be leased to employees. The idea is to get people to work in Rawlins at the state prison.

Eastwood said the governor is encouraging lawmakers to adequately fund cities and counties so they can prepare the needed infrastructure for the growth that's happening and will come.

"The pressure is on to find places for the people we need," Eastwood said. "But things are good and wonderful. Yet it brings challenges."

Jim Robinson, also a senior economist with the economic analysis division, said as of the first quarter of this year, Wyoming's foreclosure rate ranked as one of the lowest in the nation.

Communities are facing housing shortages due to booming natural-resource findings. The shortage has caused a 20 percent increase on rent and house prices. Homes in certain areas have more than doubled in price over the last five years.

Tourism also has been one of Wyoming's biggest economic drivers.

There has been double-digit growth over the past few years with $81 million raked in from lodging sales in the state from the first quarter of this year, according to the economic analysis division's 2006 summary.

"While growth might be slowing down, we are one of the strongest performers in the country right now," Liu said.