News

Improvements coming to oilfield roads in southeast New Mexico, West Texas

Adrian C Hedden | Carlsbad Current-Argus | March 22, 2019

When oil and gas started booming in southeast New Mexico, one of the first things people noticed was the traffic.

In 2017 as the boom took hold, the Eddy County Sheriff’s Office reported several accidents on highways outside of city limits, responding to multiple serious crashes – some fatal.

“I believe it’s a crisis,” said Eddy County Sheriff Mark Cage. “The whole area south of Eddy County is really struggling with our roads. There’s so much infrastructure that we need down here.”

Cage said the roads are struggling as state funds are not properly allocated to the region known for one of New Mexico’s biggest economic drivers: oil and gas.

“We generate a huge amount of revenue for the State,” Cage said. “And we need help with our infrastructure, so we can keep generating that revenue and do it safely.”

And the New Mexico Department of Transportation is getting closer to providing the safety needed for industry to continue its growth.

A main highway for oilfield traffic between Eddy and Lea counties is being upgraded, and NMDOT expected ongoing improvements to be finished by winter.

The NMDOT invested about $58 million in federal and state funds into the project, which would upgrade 32 miles of U.S. Highway 82 between Artesia and Maljamar, read a NMDOT news release.

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Roundhouse Wrapup: ‘New Mexico Must Embrace Its Strengths’ In Oil & Gas

Michael Sandoval | Western Wire | March 21, 2019

Top New Mexico education officials and business experts observing the just-concluded legislative session in Santa Fe say that while the oil and gas industry is strong, it could face significant challenges in coming years that threaten the state’s budget and a boom in student education funding.

During the 60-day session, bills passed to transition the state to a low-carbon electricity future and empowering the state’s Conservation Division to punish operators. A proposed four-year moratorium on hydraulic fracturing failed to move out of the Senate Conservation Committee in late February.

But both educators and business leaders say issues raised during the session that could reappear in 2020 pose a substantial risk in upsetting the robust revenues they regard as instrumental in lifting the state’s education system and providing revenues for much-needed infrastructure investment. They caution against policymakers disrupting the booming oil and gas production on New Mexico’s side of the popular Permian Basin and driving investment and revenue across the border on to Texas’ side of the basin.

This is the first in a four-part Western Wire series.

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Oil giants get stuck into Permian Basin as independents retreat

Oil majors have spent an estimated $10bn buying ground in the top US shale field since the start of 2017

BusinessDay | Jennifer Hiller | March 20, 2019

Eddy County — In New Mexico’s Chihuahuan Desert, Exxon Mobil is building a massive shale oil project that its executives boast will allow it to ride out the industry's notorious boom-and-bust cycles.

Workers at its Remuda lease near Carlsbad — part of a staff of 5,000 spread across New Mexico and Texas — are drilling wells, operating fleets of hydraulic pumps and digging trenches for pipelines.

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NM needs to make the most of ongoing boom

ALBUQUERQUE JOURNAL EDITORIAL BOARD | ALBUQUERQUE JOURNAL | March 19, 2018

The boom lives on.

For now.

As Journal reporter Kevin Robinson-Avila reported Wednesday, New Mexico is enjoying tandem surges from both oil and natural gas industries. Oil production in 2018 jumped 42 percent from the previous year, while natural gas production enjoyed a more measured 13 percent increase in the same time frame.

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America is set to surpass Saudi Arabia in a 'remarkable' oil milestone

CNN Business | Matt Egan | March 8, 2019

Move over, Saudi Arabia. America is about to steal the kingdom's energy exporting crown.

The United States will surpass Saudi Arabia later this year in exports of oil, natural gas liquids and petroleum products, like gasoline, according to energy research firm Rystad Energy.

 

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New Mexico breaks oil production record in 2018, as renewable agenda continues in Santa Fe

Adrian C Hedden | Carlsbad Current-Argus | March 12, 2019

A boom in oil production in New Mexico and the Permian Basin to the southeast defined 2018 for the industry, as a record 250 million barrels were produced last year.

The increase marks a 46 percent growth from 2017 to 2018, per data from the U.S. Energy Information Administration, overtaking the previous record set in 2017 of 171 million barrels by 78 million.

In 2016 and 2015, production hovered around 150 million, the two highest years at that time between then and 1981, records show.

Ryan Flynn, executive director of the New Mexico Oil and Gas Association said the upward trend was a sign of a “new” era in energy production for New Mexico.

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