Oil and gas output in Lea County with an estimated 75,000 residents is expanding faster than in any county in the United States. Eddy County’s output is not far behind. According to an article posted at ttnews.com, data collected by the oil and gas research firm Enverus shows that in 2023 Lea County became “… the first [U.S. county] to ever produce more than 1 million barrels per day.” The article continues that Novi Labs predicts “neighboring Eddy County will hit the million-barrel-a-day milestone by September next year.” Data shows that Lea and Eddy counties “…accounted for 17% of all onshore oil output in the contiguous U.S. last year, and before the next decade, they’re expected to pump more oil than the next five biggest counties combined.”
Bringing even more light to the health of the New Mexico oil and gas industry is the fact that the southwest portion of Lea County and the southeast portion of Eddy County “…produce approximately 1.9 MM BOPD, or 33% of total Permian Basin tight oil production,” states an article posted at OilyStuff.com. “These two counties have had more than 45% of the total Permian rig count running in them for three years now. New Mexico is now growing oil production faster than any other state in the nation….”
Environmental Concerns
With the success of the non-renewable energy industry in southeastern New Mexico comes certain concerns. Money aside, which is projected to provide the state’s general fund some $13 billion for the fiscal year starting July 2024 and ending June 2025, being an approximate $3.5 billion surplus or 36%, “over current annual general fund spending obligations”, some politicians and government officials as well as many activists are vocal about the safety and health threats the oil patch poses to the area’s environment and its inhabitants.
The State of New Mexico is taking these environmental concerns seriously, imposing on the industry mandatory air quality rules and emissions standards. Violators are being fined for non-compliance.
As an example last year the New Mexico Environment Department (NMED) and the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) fined Texas-based Ameredev II, LLC and affiliate Ameredev Operating, LLC more than $40 million “for egregious violations of state rules and permitting requirements.”
Excessive emissions of “…five regulated air pollutants” were found at five Lea County facilities. “NMED identified five Ameredev facilities that actively extracted oil and natural gas without any means to transport the gas to a midstream pipeline as required by New Mexico state law,” states journalist Michael Kern in his article posted at OilPrice.com. Kern says that according to NMED, “Ameredev chose to flare the natural gas, releasing an amount of CO2 equivalent to heating 16,640 homes for one year. As a result of the flaring, Ameredev emitted over 7.5 million pounds of excess hydrogen sulfide, sulfur dioxide, nitrogen oxides, carbon monoxide, and volatile organic compound emissions.”
Fracking
Fracking is pivotal to the current success of the Permian Basin’s oil and gas industry. Petroleum industry economist Jeff Barron, a spokesman for the independent federal agency Energy Information Administration, states in an article posted at TheHill.com, “The bulk of our [U.S.] oil production [approximately 2/3rds] is from tight oil formations, which basically comes from fracking.”
Fracking, however, does not come without environmental and health worries, making it a “hot” political issue. Republican candidate for U.S. President Donald Trump has always been pro-fracking. He summarizes his support of the practice with his coined phrase “drill baby drill”. Vice -President Kamala Harris, the Democratic nominee for the nation’s highest position, until a few days ago has for several years vocally opposed the practice on the grounds of climate and health issues. Still, she has not fought for a ban on fracking. In a recent CNN interview Vice-President Harris stated, “As vice president, I did not ban fracking; as president, I will not ban fracking,” noting that she has maintained this same position since 2020. Harris added, “What I have seen is that we can grow and we can increase a thriving clean energy economy without banning fracking.” In response to Harris’ statement The Republican National Committee posted on X, “Democrats are having a really tough time spinning Kamala’s position on fracking — which is that she wants to BAN it.”
Regardless of what side of the aisle the presidential candidates and their constituents place themselves on the issue of fracking, climate and health questions resulting from the practice remain.
Evidence has been compiled demonstrating that people who “… live near fracking wells have a greater risk of a range of health outcomes, and the evidence is strongest for health impacts to children,” states associate professor of epidemiology at the Yale School of Public Health Nicole Deziel. Studies show that children who live close to fracking sites are “more likely” to develop leukemia and lymphoma.
Deziel explains, “The actual hydraulic fracturing or fracking step involves millions of liters of water, chemical and sand, being injected underground under high pressure … creating these fractures in these deep rocks. Once released, that allows the oil and gas to flow up the well.” Deziel adds that “ancient water” trapped deep below ground is also released. This ancient water “…contains many contaminants, like lead, arsenic and radioactive material” which “creates a wastewater problem and the potential for water contamination”. Wastewater and water contamination trickle back, often negatively affecting the health of both the population and the environment.
A Positive Outlook For The Future
Even with its problems, oil and gas exploration in Lea and Eddy counties remains extremely promising to operators. Matador Resources Senior Vice-President of Geosciences Andrew Parker told Bloomberg that the area is “great” for exploration. The area has not been tapped as extensively as Texas’ Midland basin. Parker also says that Matador prefers southeastern New Mexico to the other side of the Permian Basin. Chevron CEO Jeff Wirth is on record as stating that 80% of Chevron’s drilling program is in the Delaware Basin, which includes Lea and Eddy counties, with performance up year after year.
Researchers, analysts and federal, state and local authorities concur that the outlook for increased oil and gas production is a given for Lea and Eddy counties in 2025 and beyond. Forecasts are positive for an expanding infrastructure and strong oil prices. The candidate who wins the presidency in this November’s election will have an impact on the area’s resulting oil and gas culture. Concerns about the environment and the health and well being of the public will remain in the spotlight. Stricter regulations will likely be imposed and enforced. In the end Southeastern New Mexico’s oil and gas industry will remain the force that fuels this rural area’s economy each and every day of the year.
