Clay Gaspar, president and CEO of Devon Energy, said his company’s operations in New Mexico have faced electricity supply constraints and led Devon to develop “our own utilities.” Speaking recently at a Barclays conference in New York, Gaspar said, “We’ll be looking and trying to understand our capabilities of building co-ops with peers to build … essentially our own utilities… That’s a whole political challenge and a whole another step. But it’s kind of the future that we’re having to explore in a defensive mechanism.”
Oil & Gas Journal said Devon has built 800 miles of distribution lines and its own microgrids in addition to using generators on location. Devon is one of the largest producers in the Delaware Basin, and the basin accounts for about 60 percent of the company’s production. About two-thirds of Devon holdings across 400,000 acres in the basin are in New Mexico.
Other firms also have invested in power infrastructure, including Diamondback Energy. The Midland-based company partnered with VoltaGrid to build a microgrid near Midland that uses associated natural gas to provide power to drilling and completion equipment.
Leave a Reply