NM oil production hit record high in 2018

The Albuquerque Journal ^ | March 13, 2019 | Kevin Robinson-Avila

[CedarDave]

Southeastern New Mexico is riding a monster wave of oil production, with output flooding into a record of nearly 246 million barrels in 2018, according to the latest statistics from the state Oil Conservation Division.

That’s up 42 percent over 2017, when New Mexico produced nearly 173 million barrels, also a record high at that time. And it’s nearly three times the 86 million barrels produced in 2012, when the modern technologies of hydraulic fracturing and horizontal drilling unleashed a years-long gusher from previously untapped shale oil reserves in the Permian Basin in southeastern New Mexico and West Texas.

Natural gas production also leapt 13 percent last year, from 1.297 trillion cubic feet in 2017 to 1.491 trillion cubic feet, according to the OCD. That’s the state’s highest output since 2008. Gas prices remain chronically depressed, but the boom in the Permian Basin is raising all boats as waves of dry and liquid natural gas get sucked up alongside oil.

“New Mexico’s oil and natural gas industry continues to be the economic backbone of our state,” said New Mexico Oil and Gas Association executive director Ryan Flynn in a prepared statement.

The good-news gusher means more money for state government, which is already enjoying a record $1.2 billion surplus going into the new fiscal year that begins in July. In fact, that preliminary forecast on surplus money for FY 2020, released late last year, may now be too low, said Sen. John Arthur Smith, D-Deming, chairman of the Senate Finance Committee.

Still, new regulatory legislation now making its way through the current legislative session could hinder industry growth.

“The only real impediment to growth right now is policy,” Flynn said. “Adverse policies can have a direct impact on production.”

[CedarDave]

It appears that all the oil and gas industry regulation proposed by the Democratic enviro-nutters is dead for this session of the legislature. That includes a four-year ban on fracking, state environmental review and approval (mini-NEPA) of all business actions affecting the environment (home building, business development, oil and gas drilling, pipelines, processing plants, etc.) and an increase in oil/gas royalties on state lands.

In one aspect New Mexico is lucky in that legislative sessions are limited to 30 days in even-numbered years and 60 days in odd-numbered years. The session ends at noon Saturday, March 16 and everything not passed DIES!

[CedarDave]

NM list PING!

I may not PING for all New Mexico articles. To see New Mexico articles by topic click here: New Mexico Topics

To see NM articles by keyword, click here: New Mexico Keywords

To see the NM Message Page, click here: New Mexico Messages

(The NM list is available on my FR homepage for FR member use; its use in the News Forum should not be for trivial or inconsequential posts. Let me know if you wish to be added or removed from the list.)
(For ABQ Journal articles requiring a subscription, scroll down to the bottom of the page to view the article for free after answering a question or watching a short video commercial.)

[mewzilla]

Now if we could just refine more of it...

[JWNM]

Our new governor will make sure that doesn’t happen again!

[JWNM]

The new legislature has definitely been in overdrive making sure they pass as much damage in as short a time as possible.

[crusty old prospector]

But what about all the potash mines?

[CedarDave]

The mines open and close depending on the price of potash. Right now they are largely open. Their will be a new underground mine coming on line near Jal, NM for a different type of potash (polyhalite).
PolyNatura’s Potash Mine Near Hobbs Moves Forward, New Mexico

[Cletus.D.Yokel]

Jal...great little cross-roads town.
Used to visit it weekly.

Don’t forget the art display!

[CedarDave]

Jal...great little cross-roads town. Used to visit it weekly.

You wouldn't know it - more parked RV's housing workers than homes. Lots of time to view whatever is next to you while you wait in traffic to get through the four-way stop at NM-18 and NM-128. Eastbound traffic will back up to 1/2 mile or more to get through the intersection. A brand new Pilot truck stop on the northeast corner complicates things.

In November I was working out of Fort Stockton from Hobbs and had to replace a windshield and needed front end repair before I could get a wheel alignment. Roads are so narrow between Jal and Kermit, and heavy truck traffic travels so fast (65-70 mph) that the deep potholes can mess up a P/U's front end and windshield, especially at night when you can not see them. And even in daylight there is no room as there is only a narrow shoulder and heavy traffic coming at you going the other direction. The Texas solution was to lower the two-lane speed limit from 75 mph to 70 but it has done little good. If you travel as I did at 55 mph for safety the big trucks will climb up your rear end or worst try to pass!

Surviving 285: Oil and gas boom wreaks havoc on southeast NM highways

[Cletus.D.Yokel]

That photo is the exact memory I have of Jal. Last time I went through (Midland - Carlsbad) was 2016.

Thousand of white pickups.

[CedarDave]

Thousand of white pickups.

Most all with Texas plates.

[CedarDave]

Thousand of white pickups.

Most all with Texas plates.