I DRINK your Milkshake!
Posted on 08/27/2019 3:12:23 PM PDT by bananaman22
New Mexico is home to part of the Permian play, the star of the shale industry and the place where oil production is growing at the fastest pace in the country. It is also the state whose new governor has one of the most ambitious emissions plans in the U.S.
Governor Michelle Lujan Grisham took office with two climate-friendly pledges: to make New Mexico’s electricity emission-free by 2045, and to curb methane emissions from the oil and gas industry more substantially than they are being limited now.
However, the oil industry is one of the biggest revenue contributors to the state, and it’s a major job creator. Bloomberg’s Rachel Adams-Heard reports that people whose businesses depend on customers from the Permian are strongly opposed to any tighter methane regulations for fear their customers would go across the state border to Texas, where regulations are laxer.
(Excerpt) Read more at oilprice.com ...
With the drilling technology available now I would not be surprised if wells could be drilled from the Texas side into the New Mexico deposits. Just like a crazy leftard governor to destroy her state on the altar of the global climate change religion.
Horizontal drilling. Pennsylvania should do it to NY where they don’t allow it either.
Let the idiot do it. Then explain that to the people in one of the most poverty stricken destitute States in the union.
With the drilling technology available now I would not be surprised if wells could be drilled from the Texas side into the New Mexico deposits. Just like a crazy leftard governor to destroy her state on the altar of the global climate change religion.
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Anyone KNOWLEDGEABLE about THE LEGALITIES OF THIS?
You won’t get that far into new Mexico that way. If the vertical bore is in tlTexas you’d only be able to go only almost two miles horizontally into NM.
Uh, no. Fifty miles is a bit far.
I was not aware of the logistics. When I worked in Alaska one well was 8K feet deep and 16K long and it snaked all over the place until they got a tool stuck at 14K feet. Bummer!
Legality may be less important than practicality. The longest reach you might expect with directional/horizontal drilling is maybe 5-6 miles (seems like I remember a 28,000 foot well offshore California?). And that's only if the target reservoir can produce enough oil or gas, fast enough, to pay the bills (drilling a deviated hole is definitely expensive). At best, you would be looking at development limited to a skinny little strip along the State border.
Kuwait and Iraq fought over the shared Rumaila oil field in 1989, partly based on use of advanced drilling techniques to cross under the border.
Right now the natural gas price sucks anyhow....it might be for the long term betterment if NM tightens regs then production stalls, prices go up, oil company sues NM and hopefully by then prices go up. In the mean time go Utica shale, and the Apilachilan basin can surge ahead.
Eclipse Resources Corporation did a 20,803 lateral for the ‘Purple Hayes’ well about two-three year back, for the Utica.
It’s New Mexico. You can probably bribe the Governor who forbids it, then go ahead and drill right there in NM. Have a pipe leading to Texas and pretend that’s where it was drilled.
Corruption abounds there.
I DRINK your Milkshake!
It’s simple really. Those states that don’t allow drilling or refining, NO OIL.
You can only produce oil from your own lease. If you directionally drill across state lines into a lease you own you still have to pay the other state royalties, and probably also royalties to the state where the well is located. If you drill into someone else’s lease you have to pay them for the production and pay the state where the lease is located royalties. Then one or the other state will make you P&A the well at least to the lease line if not all of it.
Thanks...good information.
I am still amazed at the science behind horizontal drilling. What is more amazing is the ability to frac a horizontal well
My first job after graduation was as a field engineer with the New Mexico Oil Conservation Division in the San Juan basin.
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