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NEW MEXICO LEGISLATIVE FINANCE COMMITTEE

State oil, natural gas production creep up

Posted

New Mexico  Taxation and Revenue Department data show the state produced 31.6 million barrels of oil in August, 2020, up from 31 million barrels in July but still below the peak of 35 million barrels in March, according to the November newsletter of the New Mexico Legislative Finance Committee (LFC).

“Rystad Energy reports the majority of shut-in wells had come back online by July, but drilling activity remains low, and the energy analytics company expects shale output to decline in the fourth quarter of 2020 and continue to decline into 2021,” the LFC said.

New Mexico oil was $40.04 per barrel in August, compared with an average of $44.01 per barrel in FY20.

New Mexico produced 164.7 billion cubic feet of natural gas in August, up from 158.9 billion cubic feet in July due to resumption of production from shut-in wells.

The state’s natural gas averaged $2.23 per thousand cubic feet in August, or $1.34 after accounting for transportation and processing deductions. The net average price in FY20 was $1.09 per thousand cubic feet.