Houston-based Chevron said this week it is increasing production in the New Mexico side of the Permian Basin. The oil and gas major aims to produce 1 million boed in the basin by 2025. Duncan Healey, the company’s New Mexico asset manager, said, “We see great potential there… Several factors have made it the place to be. New Mexico’s rock is very prolific. The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier… We expect to get more out of the ground than we could in other areas of the Permian.”
Chevron’s announcement Monday said other factors contributing to the region’s appeal include the company’s strategic land position in Delaware Basin and thorough knowledge of the subsurface. Since the area hasn’t been developed before, according to Healey, there’s no oil or gas depletion from other wells to worry about. The thickness of the rock adds to the region’s favorable geology.