New Mexico set another record for oil production during 2018 at 250 million bbl, 46% higher year/year, according to the Energy Information Administration (EIA).
The oil record was driven by the Permian Basin, the mega-land holding in the southeastern part of the state that it shares with Texas. Natural gas marketed production hit 1.48 Tcf in 2018, the highest in 12 years, but still below the all-time record of 1.69 Tcf set in 2000, according to the New Mexico Oil and Gas Association (NMOGA).
NMOGA Executive Director Ryan Flynn called the Permian the “economic backbone” of the state. The increase in fossil fuel production is good for jobs, communities, public schools and “the entire state budget.”
According to the New Mexico Tax Research Institute, fiscal 2018 revenue for oil and gas provided $2.2 billion, including $822 million for public schools and $241 million for state universities.
Flynn said the “only impediments to more growth for our economy and oil and gas production are regulatory uncertainty and detrimental policies” by the state government.
New Mexico has become the nation’s third largest crude producer behind Texas and North Dakota, home to the Bakken Shale.
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