Oil & Natural Gas New Mexico has been a major producer of oil and natural gas since New Mexico crude oil output is typically just over 3 percent of the hydrocarbons were first discovered in the state during the early annual U.S. total. The Permian Basin is one of the most productive 1920’s. Today, New Mexico is a leading producer of crude oil and areas and contains three of the 100 largest oil fields in the country. natural gas in the United States. Major oil and gas deposits are located in the Permian Basin in the southeast part of the state and in the San Juan Basin in the northwest. The energy industry plays a critical role in New Mexico’s economy and is an economic driver, both when prices are up and when prices are down. More than 11,000 citizens of the state are directly employed by the oil and gas industry, making it a lynch pin of the state’s economy and is essential for its continued fiscal health. New Mexico has three oil refineries in Artesia, Bloomfield and Gallup, and uses several petroleum product pipelines to connect the refineries to state and area markets. Giant Industries purchases almost all of the San Juan Basin’s oil, refining it into gasoline and diesel at facilities in Bloomfield and Thoreau. Forty-two percent of oil production is on federal land and 38 percent is on state land. Natural gas production in New Mexico accounts for close to onetenth of the total produced in the United States. In 2011, the state’s New Mexico is the second largest natural gas producer, producing marketed production of natural gas accounted for 5.3 percent of U.S. ten percent of the nation’s natural gas supply, and ranks second in marketed natural gas production, despite a decrease of 16 percent reserves in the lower 48 states. The state is also the sixth largest between 2007 and 2011. producer of crude oil in the continental U.S., excluding Federal offshore areas, ranking fourth in crude oil reserves. The San Juan Basin gas area is the largest field of proven natural gas reserves in the U.S. and is the leading coalbed-methane-producing A 2007 study of undiscovered petroleum resources in the Permian region. New Mexico’s production of coalbed methane, about one-third Basin was conducted by the U.S. Geological Survey, which estimated of the state’s total, rivals production in Colorado and is responsible that there is a mean of 41 trillion cubic feet of undiscovered natural for around three-tenths of all coalbed methane produced in the U.S. gas and a mean of 1.3 billion barrels of undiscovered oil. While coal¬bed methane production from the San Juan Basin has In 2010, New Mexico produced 65.2 million barrels of oil, an increase of more than four million barrels over 2009’s volume, and 1.3 billion declined since the late 1990s, new production is under development in the Raton Basin in the northeastern part of the state. cubic feet of natural gas. These valuable commodities are obtained Although more than two-thirds of New Mexico households use natural from more than 2,000 oil and gas fields. As of November 2011, gas as their primary source for home heating, less than one-tenth of there were 26,624 oil wells, 29,713 gas wells, 683 C02 wells, 3,783 New Mexico’s natural gas is used in the state. The majority of New enhanced recovery injection wells and 801 salt water disposal wells. Mexico’s supply is delivered to the West Coast and to market centers in West Texas that supply the Midwest. New Mexico’s Blanco Hub, ake oL vaj Na N AVA JO D A M an Riv er FARMING T O N BLOOMFIELD SAN JUAN BASIN FOLSOM natural gas supplies heading to West Coast markets. Due to restricted DES M O I N E S access to markets, particularly the Midwest, the price for New Mexico GRE N V I L L E natural gas is usually lower than the Henry Hub, Louisiana, price used CLAY TON ANGEL FI RE TA OS LIN D R IT H n Ri Cimarro Gas QU ESTA in the San Juan basin, is a major gathering point for Rocky Mountain ver R ATON C H A MA Rio Grande River AZTEC San Ju S HI PR OCK D ULC E as a national indicator. Sixty-three percent of natural gas production is SPRI NGER on federal lands and 16 percent is on state land. ad Can Gas & Some Oil ian R Education iver E SPA NOLA LO S A LA MOS CRO W N P O IN T S A NTA FE G AL L UP GLORI ETA New Mexico Institute of Mining and Technology LA S VE G A S New Mexico Tech (NMT) offers both undergraduate and graduate LAM Y has Lake Conc R cos Pe A MA R ILLO Q UAY TUC UMC A R I ALBU Q U E RQ U E G RANTS programs in petroleum engineering. Petroleum and natural gas L O GAN CONCHAS DAM r ive RIO RANC HO AMARILLO INTERNATIONAL AIRPORT EDGEWOOD LA G UN A ALBUQUERQUE INTERNATIONAL AIRPORT MOR I A RTY ESTANCI A petroleum engineering. VAU GHN FORT SU M NER CLOVIS M OU NTAI NAI R New Mexico Junior College M ELR O SE The Energy Technology program at New Mexico Junior College offers E L I DA TORRANCE PORTA LES degrees and certificates in general petroleum, as well as in production, MA G D A LEN A well service and workover, and safety. SOC ORR O San Juan College ANCHO r KE N N A Pecos Rive R E SERVE San Juan College’s School of Energy has degree and certificate programs in the Fundamentals of Petroleum Production Operations, Rio Gr and eR ive r CARRI Z OZ O R UI DOSO PERMIAN BASIN Elephant Butte Reservoir TRUTH OR C ONSEQUENC ES la Gi R Natural Gas Compression, and Well Control. In addition, they offer R OSWE LL GLE NWOOD 1-day oil and gas industry training courses designed for anyone TATUM currently employed in the industry who wants to acquire knowledge and improve skills. LOVIN GTON A LA MOG OR DO SPACEPORT AMERICA SILVER CIT Y Oil & Gas A RTE SI A Texas Tech University HOB B S B AYAR D HURL EY HAT C H Lake McMillan R IN C O N LAS CR UCES DEMING the Engineering Accreditation Commission of ABET. The programs LOVI NG J AL C H A PA R R A L EL PASO INTERNATIONAL AIRPORT SANTA TERESA ANTELOPE WELLS PORT OF ENTRY and undergraduate program in petroleum engineering accredited by E UN I C E C A R LSB A D L O RDSBURG SANTA TERESA PORT OF ENTRY E L PA SO C IU DA D J UÁ R E Z The Bob L. Herd Department of Petroleum Engineering at Texas Tech University in Lubbock, two hours east of Hobbs, has both a graduate WHIT EWAT ER COLUMBUS PORT OF ENTRY Many petroleum companies along with the cooperation of the Society of Petroleum Engineers and the American Association of Drilling SANTA ROSA BELE N r ive development, exploration, and conservation of oil and gas resources. Engineers provide scholarships to those wanting to study in the field of LOS LUNAS APACHE CREEK engineering is a broad-based discipline primarily concerned with the focus on the practical application of the basic and physical sciences of mathematics, geology, physics, and chemistry and all of the engineering sciences to the discovery, development, and production, and transportation of petroleum. Oil & Gas Companies in New Mexico ABC Rental Tool Company Chevron Production Imi-Eesi Process Equipment & Service Co. Ace Inspection Company Colborn Company Inc. John H. Hendrix Corporation Pure Resources Inc. Allen’s Casing Crews Conoco Phillips Key Energy Service Range Operating New Mexico Inc. Apache Corporation Conoco Phillips Pipe Line Co. Legacy Reserves Operating LP Read & Stevens Aries Services Inc. Cope Enterprises Llano Field Service Inc. Rice Operating Company Aspen Oil Inc. D & D Pipeline Construction LSI Lubrication Service Inc. Sanco Roustabout Automation X Corp. Danglade F J Lucky Services Schlumberger Aztec Rentals-Hobbs LLC Davis Fluid Calipers Lynx Petroleum Inc. Shell Pipeline Corp. Aztec Well Servicing Dawn Trucking McCasland Management Inc. Snow Oil & Gas Inc. B & H Maintenance & Construction Dean’s Pumping Inc. McVay Drilling Company State Oil Company Inc. B L Resources Double M Energy LLC Mesa Well Services Stephens & Johnson Operating Bandera Petroleum Inc. Doug’s Pumping Service Double D Metering & Testing Service Inc. Synergy Operating Banta Oilfield Services Dugan Production Corp. ME-TEX Oil & Gas Inc. Teaco Drilling Barton Oil Producers El Paso Natural Gas Mewbourne Oil Company Teppco Crude Pipeline Basic Energy Service ENGR Resources Mid-America Pipeline Co. TEXACO BC Services Enterprise Products Operating LP MNA Enterprises LTD Company Texland Petroleum Hobbs LLC Bearcat Drilling Envirotech Murchison Drilling Schools Trinity Pipeline LP BIO Tech Inc. Eunice Wells Servicing Inc. Nabors Well Service Company Triple S Trucking Baker Hughes Exterran Natural Gas Service Tyler Well Service Black Hills Exploration & Production Featherstone Development Corp. Navajo Refining Company United Fuel & Energy BP America Production Company Flint Energy Service Inc. Nelson Ron Vanguard Natural Resources LLC Byrom Oil Company Forest Oil Corporation Odessa Seperator Industry Veteto Oil Company C & J Equipment Manufacturing Four-Four Inc. OXY USA Inc. Warren Petroleum Corporation VADA Canyon State Oil Company Giant Pipeline Co. Patterson-UTI Drilling Company Warren Resources Inc. Cardinal Surveys Company Great Western Drilling Company Pemco of New Mexico Weatherford Completion Systems Centurion Pipeline LP Guardian Wellhead Protection Permian Drilling Corporation Westbrook Oil Corporation CHB Pump Haameyer Electric Inc. Phillips Oil Company Western Refining Chesapeake Halliburton Phoenix Hydrocarbon Corporation Whitaker Oil Tools Chevron Corporation Harvard Petroleum Company Pierce Production Company Yarbrough Oil Company Chevron Information Technology Harvey Yates Company Plains Oil/Pipeline Company Yates Energy Corporation Chevron Pipe Line Company HollyFrontier Corporation Primero Operating Inc. 1720 Louisiana Blvd NE, Suite 312 Albuquerque, NM 87110 505 247 8500 888 715 5293 nmpartnership.com 0513