As a rule, New Mexico oil and gas production is out of sight and, therefore, out of mind. Even in the production areas of the southeast and northwest, I suspect a goodly proportion of people not directly involved have only a general sense of what happens.
Even the financial impacts manifest only in a general way. In good times, state government gets oil and gas money and expands. In less good times, such as today, less money appears and government, though crunched, expands anyway. Local effects, though, are immediate for good or bad.
At the recent Legislative Finance Committee meeting in Artesia, staff at Elite Well Services and Nick Agopian of Devon Energy walked through the steps in making an oil well. Overall, the Delaware Basin in New Mexico and Texas within the Permian Basin is a “world class oil and gas play,” Agopian said. The term “play” means (thank you Wikipeda) an area with the same geology (to over simplify).
Each well costs from $1 million to $8 million. In most communities, an $8 million business investment merits a headline.
The tasks are complicated, difficult, technical and not obvious to the passerby. The work requires much science and a fair amount of luck.