The US Discovers a Massive Oil And Gas Reserve in New Mexico
Oil And Gas Reserve
- January 3, 2019
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The US Geological Survey announced the discovery of one of the largest oil and gas reserves in the world in the Delaware Basin between New Mexico and Texas early in December 2018.
The main question on the minds of pundits is whether liberals in New Mexico will support drilling.
Or is New Mexico going to go the misguided and irrational route like NY and CA have gone? These two states are sitting on thousands of solid middle class jobs. You have to be passionately illogical to even hold a position as ridiculous as that but that is where CA and NY are at.
The issue of exploring oil and gas reserves in the US has been a hotly contested topic. Just a month before the discovery in the Delaware Basin, Florida voters passed a constitutional amendment prohibiting oil and gas drilling in the state's waters. Now Florida gets a lot of money from tourism so that is a solid argument one can make since they want to protect their beaches even if the chances of an oil spill is unlikely.
Now New Mexico does not have beaches and how much Pennsylvania, North Dakota, and Texas have benefited from oil and natural gas development is monumental.
Currently, only three states in the US (New York, Vermont, and Maryland) have issued a complete ban on fracking and all three of those states are not doing well economically. Baltimore, Maryland’s largest city, is in a pitiful situation and NY has seen its middle class vacate that state but they don’t seem to care.
Meanwhile, states like Colorado and California have enforced restrictions on oil and gas exploration within their territory but Colorado did vote to protect its $32 billion or so fracking industry at the end of 2018.
What we see from states like Pennsylvania is that the oil and gas industry could produce millions in revenue and thousands of jobs as already stated. It remains to be seen how the governor of New Mexico will approach the matter since New Mexico is ran by the left which is not business friendly. This is why New Mexico has never been a leading or a productive state in its history.
Possible Position of New Mexican Leaders
New Mexico has a booming oil and gas industry. However, Michelle Lujan Grisham, the new governor of New Mexico, has been vocal about her support for government oversight of the sector. Talk like that will keep New Mexico down where it has always been.
In October, she called for a 10-mile protection zone around the Chaco Canyon. According to Grisham, all leases of land for oil and gas exploration need to be ceased until the Bureau of Land Management carries out an assessment to determine how it will affect archeological sites and ancient civilizations. Sounds like New Mexico does not want to produce jobs for itself. The Saudis and Russians love talk like this.
In Texas, it is a different story. The state's governor Greg Abbott is vocal about his support of oil and gas exploration which is why Texas is top job creator in this country.
At the 2018 Texas Alliance of Energy Producers Expo and Annual Meeting in Wichita Falls, Abbott said he looks forward to working with oil and gas explorers to take advantage of new resources. The Texas oil and gas sector, which is one of the fastest growing in the country, has produced over 200,000 jobs.
The oil and gas reserves found in the Delaware Basin are located in the Wolfcamp Shale and Bone Spring section of the Permian Basin.
The US Department of the Interior estimates that the reserves contain up over 46 billion barrels of oil, 20 billion barrels of gas liquids, and 281 trillion cubic feet of natural gas. Experts say the oil and gas reserves in the area could be considerably more. Wow!
Texas will make it work that is for sure. Will New Mexico continue to go the wrong route or will it want to be a state in America that actually matters?