Crude oil output has more than doubled in New Mexico over the last 4 years, making it the No. 3 producer among US states, but a January change in state leadership to Democratic control has industry executives fearing tougher regulations are coming.
Incoming New Mexico governor Michelle Lujan Grisham and state land commissioner Stephanie Garcia Richard plan to limit new leasing on state lands where drillers planned to tap freshwater aquifers. The incoming administration also has pledged to crack down on methane, a potent greenhouse gas that is often flared during oil production or can leak into the atmosphere from faulty equipment.
“They could make it much harder for operators to make a good profit in New Mexico,” said Phil Buch, a Texas oil executive with personal energy holdings in New Mexico. “There’s definitely an added risk there.”
Advancements in drilling technology over the last decade or so have boosted US oil production dramatically. The country’s crude output surged to a record 11.5 million B/D as of September.
However, opposition to drilling has also grown as activists around the world have pressured governments to limit emissions of carbon dioxide and other greenhouse gases blamed for global warming. In North America, there have been growing protests against pipeline construction and measures to curb fossil fuels have made their way to the ballot box in many western states.
Read the full story here.
Don't miss our latest HSE content, delivered to your inbox twice monthly. Sign up for the HSE Now newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
19 Jul 2020
- Austin, Texas
This one-day session will include a view of best practices for Carbon Management with a focus on fugitive methane reduction.
28 Apr 2020
- Brisbane, Australia
This one-day session features view on best practices for Carbon Management with a focus on fugitive methane reduction.
2 - 3 Sep 2020
- Beirut, Lebanon
Join peers and colleagues at this premier event
14 Sep 2020
- Bergen, Norway
The SPE Norway Subsurface Conference brings together the E&P industry to expand industry technical knowledge, connect with innovators and leaders and address technical challenges facing upstream oil and gas professionals.
14 - 16 Sep 2020
- Muscat, Oman
Shaping the Future of the Energy Industry.
16 - 18 Sep 2020
- Farmington, Pennsylvania, USA
Reserve your place today!
5 - 7 Oct 2020
- Denver, Colorado, USA
Join thousands of E&P professionals for technical learning, networking and collaboration
HSE Now is a source for news and technical information affecting the health, safety, security, environment, and social responsibility discipline of the upstream oil and gas industry.
©2003-2020 Society of Petroleum Engineers, All Rights Reserved.