Two NM counties account for 29% of Permian basin crude oil production

Horizontal wells in Lea and Eddy counties in southeastern New Mexico drove much of the recent growth in Permian basin crude oil output, according to the US Energy Information Administration.

Average crude oil output of 1.7 million b/d from horizontal wells in the counties accounted for 29% of all first-quarter 2023 crude oil production in the Permian, EIA said citing Enverus data.

Permian crude oil output increased to 5.7 million b/d in March, the most recent month for which data are available, compared with an average of 5.3 million b/d in 2022, and 4.7 million b/d in 2021, EIA said. Roughly 60% of first-quarter 2023 total growth in the region is attributed to horizontal wells in Lea and Eddy, compared with 44% for the same period last year.

In 2022, natural gas production in the Permian basin hit an annual high, averaging 21.0 bcfd, mainly from associated natural gas produced from oil-directed drilling, EIA said. Associated natural gas production in Lea and Eddy counties has almost doubled since 2021, averaging 3.7 bcfd in January 2021 and increasing to 6.5 bcfd in March 2023. The two counties accounted for 28% of all natural gas production in the Permian basin in first-quarter 2023, EIA said.