Officials from Federal Reserve Bank of Dallas said New Mexico “has quietly become an energy powerhouse” and now ranks No. 2 in oil production in the U.S. Production in the state surpassed 2 million barrels per day in 2024 – more than double that of 2019 (about 0.9 million b/d). Exploration in Eddy and Lea counties in southeastern New Mexico propelled the expansion and bolstered the state treasury in the process. The state’s activity contrasts with other states – including Oklahoma, North Dakota and California – where production has been generally stagnant or declined since 2019.
The three officials – Garrett Golding, Diego Morales-Burnett and Kunal Patel – said March 24 production in the Permian Basin in New Mexico and Texas continued to grow in 2024 to exceed 6 million b/d. They wrote, “Industry participants say the region has a larger number of drilling locations relative to other basins and a multi-stacked play, which allows the simultaneous targeting of several oil-bearing zones. It also benefits from a generally favorable regulatory environment, proximity to the refining and chemical complex on the Gulf Coast, and access to pipelines for transport.”