Oil

SANTA FE, N.M. (AP) An economic boom in southeast New Mexico has been attributed to skyrocketing oil production. The Albuquerque Journal reported on Aug. 16 that New Mexico's revenue exceeded projected levels allowing lawmakers to authorize a $663-million spending increase for the budget year that started in July.

ExxonMobil has begun construction on a new crude unit at its Beaumont, Texas, refinery that will increase capacity by more than 65 percent, or 250,000 barrels a day. "This project is part of ExxonMobil's larger ‘Growing the Gulf' initiative, a series of refining and chemical expansion projects across Texas and Louisiana," said Emily Russell, ExxonMobil public and government affairs advisor.

On June 10, 2019, Phillips 66 announced two separate 50/50 joint ventures to proceed with construction of two new pipelines, the Liberty Pipeline (with Bridger Pipeline LLC) and the Red Oak Pipeline (with Plains All American Pipeline). "The [Liberty] Pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers," said Greg Garland, chairman and chief executive officer of Phillips 66.

BISMARCK, N.D. (AP) Two companies are proposing a $1.6 billion pipeline to move North Dakota crude oil, making it the biggest such project in the state since the Dakota Access pipeline that sparked violent clashes between protesters and law enforcement in 2016 and 2017.

Wolfcamp and Bone Spring Formations of the Permian Basin in west Texas and New Mexico hold oil and gas reserves estimated at 46.3 billion barrels of oil. According to a fourth quarter 2018 U.S. Geological Society report, full production estimates through 2025 predict that by 2021 one in every six barrels of oil, globally, will come from the Permian Basin.

ExxonMobil said a new study estimates the company's development of Permian Basin resources in New Mexico will generate approximately $64 billion in net economic benefits for the state and local communities over the next 40 years, creating thousands of new jobs and providing increased funding for education, health and human services and infrastructure improvements.

Howard Energy Partners (HEP) announced May 16 that it has completed construction on the majority of its previously-announced crude oil and natural gas gathering and processing infrastructure in the core of the Delaware Basin. HEP's Delaware Basin assets are part of a strategic joint venture with WPX Energy that is operated by HEP and supported by an area of mutual interest of more than 600 sq.

CARLSBAD, N.M. (AP) A key highway in southeastern New Mexico and another West Texas are getting much-needed upgrades to accommodate the rise in traffic from the region's oil and gas boom. In New Mexico, the state's Department of Transportation is working to renovate U.S.

Oryx Midstream Services II LLC announced that its operating subsidiary, Oryx Delaware Oil Transport LLC has launched a binding open season to secure volume commitments to support the proposed construction and development of new crude oil transportation movements on its regional crude oil transportation system serving the liquids-rich Delaware Basin in Texas and New Mexico.

Oil production giants Chevron and ExxonMobil have announced plans to increase the amount of oil produced in the Permian Basin in the coming years. Due to unconventional methods — defined as extracting oil using methods other than a conventional oil well — oil production has skyrocketed in the Permian, leading to new pipelines, refineries, ports and transportation methods to move the oil and gas.

The U.S. Energy Information Administration (EIA) is predicting U.S. crude oil production will average 11.7 billion barrels per day in 2019, putting it on track to surpass the previous record of 9.6 million b/d in 1970. More than half of that is expected to be produced in the Permian Basin in western Texas and eastern New Mexico.