According to the Energy information Administration (EIA), New Mexico provides nearly 7% of the natural gas produced in the United States annually.
Total energy production in New Mexico accounts for 2,378 trillion BTU, which is 4.19% of the total energy production of the United States annually (EIA).
NM Reserves
As of 2011, New Mexico has 3.4% of the Nation’s total crude oil reserves.
As of 2011, New Mexico has 5.7% of the Nation’s dry natural gas reserves.
As of 2011, New Mexico has 8.4% of the Nation’s natural gas liquids.
New Mexico is estimated to be 4th in the nation in terms of proven natural gas reserves (EIA State Profiles).
NM Production
Baker Hughes reports that there are 80 active rigs in operation in NM in 2011 (4.0% of the US total on shore rigs).
NM has 52,976 oil and natural gas producing wells.
Additionally, New Mexico has a total crude oil refining capacity of 123,000 barrels per calendar day (0.69% of the US total).
New Mexico also has 2 refineries: (1) Navajo Refinery in Artesia; and (2) Western Refining Southwestern in Gallup.
NM is the 8th largest on-shore natural gas producer, according to the EIA - 1.425 billion cubic feet.
NM is the 7th largest producer of crude oil, according to the EIA - 61,146,000 barrels per year.
Drilling Costs
Interviews with those familar with the industry suggest that drilling prices in New Mexico average about $215 per drilled foot, and range from $150-$300 per drilled foot.
It is estimated the cost to drill a well in the San Juan Basin is valued at $1.2 million.
It is estimated the cost to drill a well in the Permian Basin is valued at $1.6 million.
Largest Reserve Fields
New Mexico has two major natural gas and oil producing areas: the Permian Basin and the San Juan Basin.
The New Mexico portion of the Permian Basin contains three of the 100 largest oil fields in the US.
The San Juan Basin contains the largest natural gas reserves in the US (EIA, 2008).
It is estimated that only 27% of the available resource has been extracted from the Permian Basin.
It is estimated there are 45 billion barrels of residual oil and 30 billion barrels of mobile oil available in the Permian Basin.