Oil industry dives head-on into NM’s Delaware Basin

The Albuquerque Journal ^ | March 26, 2018 | Kevin Robinson-Avila

[CedarDave]

Battle Axe Road cuts smack through the heart of New Mexico’s side of the Delaware Basin, a previously marginal zone along the Texas border that is rapidly turning the state into a global player in the oil industry.

Industry titans like ExxonMobil, Chevron USA, EOG Resources and Concho are pumping billions of dollars into this zone, which holds some of the most-productive oilfield geology in the nation, said long-time oilman and former county commissioner Gregg Fulfer during a three-hour drive through the area. It’s the latest and most promising boom to emerge on the New Mexico side of the Permian Basin in decades, thanks to technology that allows operators to slice into layers of underground hard shale rock to reach huge pools of hydrocarbons they couldn’t tap into before with conventional drilling methods.

“The shale revolution is dwarfing anything we’ve seen here before,” Fulfer said. “The major oil companies invested between $12 billion and $14 billion just last year to build all the infrastructure they need to drill wells and store, process and transport everything connected to their operations.”

That turned New Mexico into the nation’s third-largest oil-producing state last year after Texas and North Dakota. Production reached 171 million barrels in 2017, the highest output by far in New Mexico history.

And today’s boom may be only the beginning, since major companies like ExxonMobil expect to ramp up operations over many years. To date, operators have barely scratched into a few of the shale layers that that line the New Mexico side of the Delaware Basin, an oval-shaped rock formation within the Permian that protrudes from southwestern Texas northward into Lea and Eddy counties.

[CedarDave]

From another story:

* New Mexico’s rig count climbed above 80 in February, up from just 15 rigs statewide in June 2016. Each rig employs about 50 people directly, plus 50 to 70 more in support jobs.

*About two-thirds of all rigs are operating in Lea County, which is now the No. 1 oil producing county in all of the Permian Basin, and No. 3 nationwide after Weld County in Colorado and Kern County in California.

https://www.abqjournal.com/1150486/as-oil-flows-jobs-revenue-rebound-in-lea-county.html

[Red Badger]

More WINNING!....MAGA!.....................

[CedarDave]

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[Gay State Conservative]

DRILL HERE...DRILL NOW!

That means Atlantic Coast,Pacific Coast,Gulf Coast,Alaska Coast,49 states (excluding mainland Hawaii and DC)

[laplata]

This is very good to see.

[crusty old prospector]

That Fulfer feller is making out like a bandit. He just sells frac water. Probably has a disposal well on the other side of the road.

[FLT-bird]

Drill ANWR and lift the ban on offshore drilling everywhere. Oh and frac all we can too.

[FLT-bird]

Edit. I just learned the Tax bill passed last year gives The green light to allow drilling in ANWR. Sweet! Also Trump has lifted the ban on offshore drilling. Out-freaking-standing!

[fishtank]

NM needs to ask Texas how to get rid of the state income tax.

[Jane Long]

Yee haw!!!

Thanks for posting :-)

[existtoexcel]

We're gonna need a bigger refinery.

Maybe without the EPA stranglehold expansion and upgrades can proceed.

[CedarDave]

Wanted to include a map to go along with the article.

[LegendHasIt]

Thanks, Dave.

[Cletus.D.Yokel]

Very heavy, wet gas. Midstream is processing flows of near 40% C2-C4.

[laplata]

That’s a very good map. Thanks, Dave.

[Tijeras_Slim]

You’re funny.

[advertising guy]

Read this !

[PAR35]

Looks like someone could save a lot of drilling if they put their rig at the bottom of Carlsbad Cavern.

[fishtank]

I’m desperate.

NM is not doing well compared to our neighbor states (excepting the Mexico neighbors....)

Haha