New Mexico's Record-Breaking Oil Production Numbers for February 2018
Santa Fe, NM – New Mexico oil production for February 2018 set an all-time record of 588,000 barrels per day, according the U.S. Energy Information Administration. February’s production was one-third higher than a year ago and has doubled over the last 5 years. States that have seen the greatest year over year increases in production include Colorado, New Mexico, and Oklahoma. On a national level, EIA’s February-2018 US oil production was 10,263,536 barrels per day, also an all-time record.
If current prices and activity levels persist, New Mexico will see additional production coming on line. This added production has recently outpaced Alaska, Oklahoma and California to place New Mexico as the third largest oil producer in the US, behind Texas and North Dakota.
New Mexico’s oil production numbers for February are no surprise to those following the rig count closely. New Mexico’s rig count shrank to 13 with the price collapse in 2016. Since then, New Mexico has added back a larger proportion of rigs than any other state, standing at 87 working rigs today, 84 percent of the record high set in 2014.
Operators are choosing to drill in the Delaware Basin of New Mexico because the technological advances in horizontal drilling is producing some of the best wells in the country. These advances coupled with mild winters, produce operational costs that are lower than most other parts of the country.