New Mexico's oil output gains top Texas in 2022, delivering half of US growth

China CBM

18/05/2023 21:51

By Stephanie Kelly
       NEW YORK, May 18 (Reuters) - New Mexico's crude oil
production grew more last year than any other U.S. state,
including top producer Texas, and accounted for half the
nation's overall gain, signaling its importance in expanding
U.S. oil output.
    The state's production rose by a record 300,000 barrels per
day (bpd) in 2022, to 1.6 million bpd, the U.S. Energy
Information Administration said on Thursday. It was the third
consecutive year that New Mexico's increase outpaced other
states.
    Overall U.S. crude oil production grew by 600,000 bpd in
2022, averaging 11.9 million bpd, the EIA said. 
    "New Mexico is like the new frontier, and there's a lot of
upside potential," said Phil Flynn, an energy analyst at Price
Futures Group. "Some people argue that some of (Texas's) best
wells have been drilled."      
    Texas is still the largest oil-producing state with output
totaling nearly 5.3 million bpd in February, far ahead of New
Mexico's 1.8 million bpd, the most recent EIA data showed. 
    But New Mexico's gains, from investments by U.S. oil
producers including Chevron Corp  CVX.N , ConocoPhillips
 COP.N , Devon Energy Corp  DVN.N , and Occidental Petroleum
Corp  OXY.N , are poised to continue. 
    The number of drilling rigs, a barometer for future
production, has increased by five so far this year in New
Mexico, compared to an eight-rig decline in Texas, the EIA said.
    That is reversing a trend from 2022, when the rig count
increased by eight in New Mexico and by 100 in Texas.
    Outside of New Mexico and Texas, U.S. crude production grew
33,000 bpd last year. California's oil output decreased for the
eighth consecutive year, Alaska decreased for the fifth straight
year, and North Dakota fell for a third year, the EIA said.
    The EIA estimates U.S. crude output will increase this year
to a new record high of 12.5 million bpd and to 12.7 million in
2024. The last record output was hit in 2019 at 12.3 million
bpd.

 (Reporting by Stephanie Kelly
Editing by Marguerita Choy)
 ((Stephanie.Kelly@thomsonreuters.com; 646-737-4649; Reuters
Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))