Devon Energy Corp., Oklahoma City, Okla.,may significantly scale up its investment in electricity infrastructure in parts of the Delaware basin, president and chief executive officer Clay Gaspar said recently.
Speaking earlier this month at the Barclays 39th Annual CEO Energy-Power Conference 2025 in New York, Gaspar said Devon’s operations in New Mexico have run into electricity supply constraints in recent years that have spurred his team to build more than 800 miles of distribution lines and its own microgrids in addition to using generators on location.
Devon is one of the largest oil and gas producers in the Delaware and the basin accounts for about 60% of the company’s output. About two-thirds of the company’s holdings across roughly 400,000 acres in the basin are in New Mexico.
With additional electricity not forthcoming from utilities in New Mexico—a situation Gaspar attributed to “self-induced issues” and “a whole political thing”—Devon is examining possible next steps that include teaming up with other notable names.
“We’ll be looking and trying to understand our capabilities of building co-ops with peers to build our […] essentially our own utilities,” Gaspar told Barclays attendees. “That’s a whole political challenge and a whole another step. But that’s kind of the future that we’re having to explore in a defensive mechanism.”
Devon officials declined to elaborate on Gaspar’s remarks about what Devon’s future development of electrical infrastructure might entail.
