October 5, 2022

Annual Carlsbad Energy Summit to tout Permian Basin oil production

Permian Basin oil and gas producers continued to dominate the industry this year, producing nearly half of the United States’ onshore crude oil during a period of growing global fuel demand.

That’s why Carlsbad, located in the active western Delaware subbasin of the Permian, has planned to host its annual Mayor’s Energy Summit on October 20 in the Walter Gerrells Performing Arts Center Annex.

Each year, the fall event draws industry executives and executives to Carlsbad for a day of discussion about market trends and the goals of the region’s oil companies.

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This year, Hanson Yates of Santo Petroleum, one of the first operators to discover oil in southeastern New Mexico, will present a history of drilling in the region, while other speakers representing energy producers and trade associations will discuss “The Permian as a resource.”

Midstream operators, who provide services to oil and gas producers like pipelines and processing, will also be represented as the sector grows.

Speakers will also discuss labor shortages, according to an announcement from the city of Carlsbad, an issue for many industries as the nation and the world recovers from COVID-19.

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Carbon capture technology and efforts by energy companies to reduce air pollutant emissions will also likely be a key topic at the event, as the state of New Mexico recently finalized rulemaking at the Department New Mexico Environment (NMED) and Energy, Minerals and Natural Resources. Resources Department (EMNRD).

The NMED rules targeted the release of chemicals that form ozone at ground level, increasing reporting and leak detection and repair requirements for known oil-producing counties.

REMDR rules required all fossil fuel producers to reduce their produced gas emissions, often brought to the surface with crude oil, by 98% by 2026, while banning flaring – the burning of excess natural gas – except in emergency situations.

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The Federal Environmental Protection Agency has also considered tightening its restrictions on Permian Basin oil producers, in response to both high ozone levels and methane emissions across the region.

Carlsbad Mayor Dale Janway said Eddy County and neighboring Lea County are national leaders in onshore oil and gas production, which he says provides needed energy and fuels in the world.

More recently, the federal Energy Information Administration (EIA) forecast oil production in the Permian to reach about 5.41 million barrels per day (bpd) in October, up 66,000 bpd from the total of about 5.34 million September.

After:U.S. officials in New Mexico clash over oil and gas license reform proposals

The region encompasses the two counties in southeastern New Mexico, as well as several in western Texas extending into the eastern Midland sub-basin.

Lea County produced about 25 million barrels of oil in June, leading the region that month, followed by Eddy County with about 18.6 million barrels, according to data from the Division of Conservation. oil from New Mexico.

Those figures fell in July, the last month available on Friday, with Eddy and Lea producing about 7.6 million barrels and 6.9 million barrels respectively that month, according to the OCD.

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The Permian Basin recently pushed New Mexico to become the second-largest oil-producing state in the United States, with an estimated 1.5 million barrels per day in June, according to the latest EIA data.

Texas led the nation with 4.9 million barrels of oil, according to the EIA, and North Dakota was third in the United States with about 1.1 million barrels per day in June.

On the Texas side of the Permian, Midland County led the state in oil production, according to the latest commission data in June with about 16.4 million barrels that month, followed by Martin with 12.4 million barrels.

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Nearby Howard County produced about 8.4 million barrels that month, records show, followed by Karnes County in South Texas’ Eagle Ford Basin at about 7.8 million barrels.

“Eddy and Lea County are national leaders in domestic drilling,” Janway said. “It is certainly vital that any discussion of the future of our domestic drilling go through busy southeast New Mexico.”

Steve Stucker, meteorologist for KOB 4, will also speak as a special guest at the event, an accolade in the past given to famous professional athletes and celebrities to entertain the crowds at the summit’s close.

Stucker is also a pastor and gives motivational speeches and sermons for Calvary Chapel Southwest in Albuquerque.

Adrian Hedden can be reached at 575-628-5516, [email protected] or @AdrianHedden on Twitter.