New Mexico: New Oil and Gas Regulations

By: Sam Stires / October 16, 2020

The Oil Conservation Division (OCD) and its parent agency, the Energy, Minerals and Natural Resources Department (EMNRD) began work on stricter regulations on gas emissions from extraction facilities last year as mandated by Gov. Michelle Lujan Grisham through an executive order. Grisham established the State’s Climate Change Task Force, made up of EMNRD and the New Mexico Environment Department to find ways state operations and laws could be used or developed to reduce pollution in New Mexico and its impact on climate change. Reported last month, New Mexico Oil and Gas Association (NMOGA) reported that in 2018, oil and gas provided 134,000 instate jobs and $16.6 billion to the state’s economy.


The proposed rule would require both upstream and midstream oil and gas operators to capture 98 percent of their natural gas by 2026, rather than releasing the gas through venting or burning it off via flaring. Methane emissions makes up one of New Mexico’s largest greenhouse gas emissions. Ryan Flynn, NMOGA executive director is strongly against these regulations. “The oil and natural gas industry support jobs and local economies in every corner of our state, and this report underscores the employment ripple effect inherent in this industry when it is allowed to be successful,” said Flynn said. Reports by Baker Hughes showed New Mexico had 45 active rigs as of last week, while the state averaged 101 in October of 2018 and 112 last October.

Already effected by the pandemic, the severe decline in oil and gas activity led by a massive group in the value of fossil fuel. New Mexico reported 2021 would see a 40% drop in revenue compared to 2018. As states recover from the COVID-19, these regulations will not only have a big impact on New Mexico’s economy but also the employment of over 100,000 jobs.



Categories: Regulation, Emissions Standards, fuel regulations, new mexico

Sam Stires

Written by

Sam Stires

My customers can expect promptness in service and attention to detail in all aspects of our professional relationship. Combining sales and interpersonal skills, I develop a strategy for each of my unique customers’ needs. I believe effective communication and trust are the building blocks to creating a long lasting partnership.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us