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Permian Basin oil and gas producers continued to lead the industry this year, producing almost half of the U.S.’ onshore crude oil during a time of growth for fuel demand throughout the world.
That’s why Carlsbad, located within the active western Delaware sub-basin of the Permian planned to host its annual Mayor’s Energy Summit Oct. 20 at the annex of the Walter Gerrells Performing Arts Center.
Each year, the fall event draws industry leaders and executives to Carlsbad for a day of discussion on market trends and objectives of oil companies in the area.
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This year, Hanson Yates of Santo Petroleum, one of the first operators to discover oil in southeast New Mexico, will provide a history of drilling in the region, while other speakers representing energy producers and trade associations will address the theme of “The Permian as a Resource.”
Midstream operators, which provide services to oil and gas producers like pipelines and processing, will also be represented as the sector grows.
Speakers will also discuss workforce shortages, per an announcement from the City of Carlsbad, a problem for many industries as the nation and world recovers from COVID-19.
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Carbon capture technology and efforts by energy companies to reduce air-polluting emissions will likely also be a key topic of the event, as the State of New Mexico recently finalized rulemaking at the New Mexico Environment Department (NMED) and the Energy, Minerals and Natural Resources Department (EMNRD).
The NMED rules targeted the emission of chemicals that form ground-level ozone, increasing reporting and leak detection and repair requirements for known oil-producing counties.
EMNRD’s rules required all fossil fuel producers cut 98 percent of their produced gas emissions, often brought to the surface with crude oil, by 2026 while also banning flaring – the burning of excess natural gas – except in emergency situations.
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The federal Environmental Protection Agency also considered tightening its restrictions on the Permian Basin oil producers, in response to both high ozone levels and methane emissions throughout the region.
Carlsbad Mayor Dale Janway said Eddy County and neighboring Lea County were national leaders in onshore oil and gas production, which he said provides needed energy and fuel supplies to the world.
Most recently, the federal Energy Information Administration (EIA) projected oil production in the Permian would grow to about 5.41 million barrels per day (bpd) in October, up 66,000 bpd from September’s total of about 5.34 million.
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The region encompasses the two southeastern New Mexico counties, along with several in West Texas spanning to the eastern Midland sub-basin.
Lea County produced about 25 million barrels of oil in June, leading the region that month, followed by Eddy County at about 18.6 million barrels, per data from the New Mexico Oil Conservation Division.
Those numbers dipped in July, the last month available as of Friday, with Eddy and Lea producing about 7.6 million barrels and 6.9 million barrels respectively that month, per the OCD.
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The Permian Basin recently pushed New Mexico to become the second-highest oil-producing state in the U.S., at about 1.5 million barrels per day in June, per the latest data from the EIA.
Texas led the nation with 4.9 million barrels of oil, per the EIA, and North Dakota was third in the U.S. at about 1.1 million barrels per day in June.
On the Texas side of the Permian, Midland County led the state in oil production, per the commission’s latest data as of June with about 16.4 million barrels that month, followed by Martin County with 12.4 million barrels.
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Nearby Howard County produced about 8.4 million barrels that month, records show, followed by Karnes County in southern Texas’s Eagle Ford Basin at about 7.8 million barrels.
“Eddy and Lea County are national leaders when it comes to domestic drilling,” Janway said. “It is certainly vital that any discussion about the future of our domestic drilling go through busy southeast New Mexico.”
Steve Stucker, weatherman for KOB 4 will also speak as event’s special guest, a distinction in the past offered to famous professional athletes and celebrities to entertain the crowd at the close of the summit.
Stucker also serves as a pastor and gives motivational speeches and sermons for the Calvary Chapel Southwest in Albuquerque.
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.
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