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The Oil Rally Has Stalled Once Again

The Oil Rally Has Stalled Once Again

Oil prices rallied once again…

New Mexico Is Now Third-Largest U.S. Oil Producer

Thanks to the booming Permian Basin, New Mexico has become the third-largest U.S. oil-producing state in September and October, outstripping Oklahoma, California, and Alaska, data by the EIA shows.

Texas leads the rankings and North Dakota is second in terms of crude oil production by state in the U.S.

In October 2017, the latest available EIA data, New Mexico pumped 528,000 bpd, setting another record high, after having produced 504,000 bpd in September. Crude oil production in the state has doubled over the past five years.

For the month of October, New Mexico’s total crude oil production was 16.367 million barrels.

New Mexico is now on track to set an annual oil production record in 2017, the New Mexico Oil and Gas Association (NMOGA) said, commenting on the EIA ranking.

“We are turning an economic corner because of a surge of activity and investment in the Permian Basin and New Mexico’s attractive and balanced business environment,” Ryan Flynn, NMOGA’s Executive Director, said in the statement. 

“All New Mexicans benefit from a strengthened economy anchored by oil and natural gas, and can expect these trends to hold up for the forseeable future as market prices continue to steady and if New Mexico remains a favorable place for oil and gas producers to do business,” Flynn added.

Related: U.S. Shale Can’t Offset Record-Low Oil Discoveries

According to state economists, New Mexico is on track to receive $199 million in additional revenue, mostly due to the resurgence of the oil and gas sector, NMOGA said. 

In recent months, southeastern New Mexico—home to the smaller part of the Permian shale play with part of the Delaware Basin—has seen increased deal and drilling activity. Now, shale drillers and oil majors want access to the Permian without paying the high prices and costs in Texas. And they’ve started using cheaper New Mexico as a kind of ‘geological back door’.

By Tsvetana Paraskova for Oilprice.com

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  • Bill Simpson on January 05 2018 said:
    New Mexico is one of the most geologically diverse places on the planet. North America was once beginning to rip apart in New Mexico. Then the tearing stopped. Geologists think.

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