Oil and Gas Electrifies

NMOGA members often utilize electrification to allow for maximum production and decreased carbon intensity. Electrification within oil and gas operations might seem like a paradox, but it is an increasingly viable option for reducing the carbon intensity of hydrocarbon production.

A primary definition of electrification in oil and gas operations refers to converting or replacing equipment running on diesel or other hydrocarbon fuels with equipment that runs on electricity. Examples include the electrification of hydraulic fracturing fleets and the creation of collaborative energy hubs, like shared microgrids.

Electrification can also refer to converting hydraulic power distribution and control systems to electric ones. This is a significant enabler of energy efficiency improvements and smaller infrastructure across oil and gas.

Natural Gas & Electricity

All states use a variety of sources to provide residents’ electricity needs. According to the U.S. Energy Information Administration, natural gas was the top source—about 43%—of U.S. utility-scale electricity generation in 2023. Natural gas is used in steam turbines and gas turbines to generate electricity.

In New Mexico, natural gas is the primary electricity generator and works collectively with renewable energy sources, like wind and solar, to power your homes and businesses. A combination of energy sources allows for reliable and affordable electricity options.

New Mexico Electrification

Since the passage of the 2019 Energy Transition Act (ETA), it is becoming increasingly apparent that New Mexico utilities will need natural gas to ensure the quickest path possible to full energy transition.

The grid is facing challenges to ensure it can meet the ETA goals and timelines, keep up with increasing demand, and modernize technology and infrastructure.

Oil and gas companies are currently not electrifying their facilities as quickly as possible due to the strain on the grid and access to additional power.

NMOGA supports and encourages the New Mexico Legislature and NM Public Utility Commission to continue their efforts to allow for grid modernization and increase capacity to allow our economy to diversify and grow current business.

NMOGA is working closely with utilities and regulators to grow business, electrify facilities, and provide options for affordable, reliable and sustainable energy options.