energy production is growing in new mexico

Texas might be regarded as the energy capital of the world, but as Chevron’s Duncan Healey knows, other states also make important contributions to U.S. energy independence.

Take New Mexico. The Permian Basin, one of the most prolific oil and gas regions in the U.S., reaches across both states.

And right now, Chevron is ramping up production on the New Mexico side of the Permian Basin.

“We see great potential there,” said Healey, the company’s New Mexico asset manager. “Several factors have made it the place to be.”

New Mexico’s attractiveness is due in part to its high-quality source rock, said Healey. Source rock is rock that was formed with enough organic material to generate oil and gas when subjected to pressure over time.

“New Mexico’s rock is very prolific,” Healey said.

And since the area hasn’t been developed before, there’s no oil or gas depletion from other wells to worry about. Healey also noted that the thickness of the rock adds to the region’s favorable geology.

“The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier,” he explained. “At the end of the day, we expect to get more out of the ground than we could in other areas of the Permian.”

Other factors contributing to the region’s appeal include Chevron’s strategic land position and thorough knowledge of the subsurface.

Chevron’s approach to developing the New Mexico side of the Permian Basin is aligned with the state’s regulatory emphasis on safety and the environment.

For instance, where possible, Chevron is using electrical compressors rather than natural gas-fueled compressors to power its operations. It has also reduced the intensity of carbon emissions associated with its hydraulic fracturing equipment.

“Reducing the intensity of our carbon emissions has been a big part of the development story here,” Healey said. “We’re striving to develop the land with minimal impact on the environment and ensure that we’re not disturbing any wildlife through our operations.”

Chevron is aiming to reach 1 million barrels of oil-equivalent per day in the Permian Basin by 2025. To get there, Healey said the company is focused on the most productive area.

“It’s about delivering the affordable, reliable and lower carbon intensity energy the world relies on,” he said. “I feel proud about what we’re doing there and how we’re doing it.”