Why has delivery of natural gas into New Mexico been impeded?


New Mexico has been a major producer of oil and natural gas since hydrocarbons were first discovered in the state during the early 1920’s. In 2000, New Mexico produced more than 68 million barrels of oil, 1.6 trillion cubic feet of natural gas, and 119 billion cubic feet of naturally occurring carbon dioxide for a total value of $8.2 billion. These valuable commodities are obtained from more than 2,000 oil and gas fields. http://geoinfo.nmt.edu/resources/petroleum/home.html


Using a geology-based assessment methodology, the U.S. Geological Survey estimated a mean of 50.6 trillion cubic feet of undiscovered natural gas, a mean of 19 million barrels of undiscovered oil, and a mean of 148 million barrels of natural gas liquids in the San Juan Basin Province. http://pubs.usgs.gov/fs/fs-147-02/fs-147-02.html



The San Juan Basin of northwest New Mexico and southwest Colorado is the second largest gas basin in the United States, second to the greater Hugoton Field of Texas, Oklahoma, and Kansas. Until the 1970s, most of the gas produced in the basin came from the three major fractured-sandstone reservoirs: the Dakota Sandstone, the Mesaverde Group, and the Pictured Cliffs Sandstone, all of Late Cretaceous age. Starting in the late 1970s, and accelerating in the 1980s to the present, production from coal-bed methane (CBM) reservoirs in the basin has gone from virtually none to around one trillion cubic ft of gas (TCFG)/year, making the San Juan Basin’s Fruitland CBM field the largest CBM field in the world. http://www.searchanddiscovery.net/documents/2010/10254fassett/ndx_fassett.pdf



Ten of New Mexico’s counties currently produce oil and/or natural gas ­Chaves, Eddy, Lea, Roosevelt and Quay in the southeast, and McKinley, Rio Arriba, San Juan and Sandoval in the northwest and Colfax in the northeast. Pipeline mileage stretches more than 25,000 miles, exceeding the combined mileage of New Mexico’s railroads and highways. In year 2007, over 1200 new wells were drilled and the state produced 1.6 trillion cubic feet of natural gas and 65.4 million barrels of crude oil.” http://nmoga.org/industry.asp?CustComKey=361961&CategoryKey=361962&pn=Page&DomName=nmoga.org


NM Oil & Gas Statistics

70 Percent of Homes
An estimated 70% of homes in New Mexico are heated by natural gas.

New Mexico is ranked 43rd in overall population

New Mexico’s per capita income is $22,203. (ranked 49th)

0.6 Quadrillion Btu.
Total energy consumption in New Mexico is 0.6 quadrillion Btu. (ranked 37th)

365 Million Btu.
Per capita energy consumption is 365 million Btu. (ranked 23rd)

5.5 Million Gallons Per Day
Total petroleum consumption is 5.5 million gallons per day. (ranked 34th)

2.6 Million Gallons Per Day
Gasoline consumption is 2.6 million gallons per day. (ranked 35th)

1.4 Million
Distillate Fuel Consumption is 1.4 million gallons per day. (ranked 38th)

0.5 Million Gallons
Liquefied petroleum gas consumption is 0.5 million gallons per day. (ranked 27th)

Jet Fuel
Jet fuel consumption is 0.3 million gallons per day. (ranked 34th)

718 Million Barrels
New Mexico’s crude oil reserves are 718 million barrels. (ranked 4th)

184 Thousand Barrels
New Mexico’s crude oil production is 184 thousand barrels per day. (ranked 6th)

56,000 Wells
The number of wells producing oil numbered 56,000 in year 2007.

78 Rotary Rigs
There are an average of 78 rotary rigs per week in exploring new wells in year 2007.

95,600 Barrels
New Mexico’s refineries have a combined capacity of 95,600 barrels per calendar day.

0.8 Percent
New Mexico has 1,478 gasoline stations, less than 0.8 percent of the U.S. total.

*Statistics provided by the Energy Information Administration, visit http://www.eia.doe.gov for more information. http://nmoga.org/industry.asp?CustComKey=361961&CategoryKey=362104&pn=Page&domname=nmoga.org


Then why?:


The New Mexico Gas Company issued a press release at noon which said, “Due to rolling black outs in West Texas and other problems, the delivery of natural gas into New Mexico has been impeded. States in the southwest are experiencing similar issues.” http://newmexicoindependent.com/68766/gov-declares-state-of-emergency-due-to-gas-shortage-cold

Why are we getting our gas from Texas?


Who will cover the damages?

The National Guard has been dispatched to Espanola, Taos, and the north central pueblos, where less than 10 percent of customers have gas. Relighting will continue throughout the area Monday and Tuesday.

Annette Gardiner, president of New Mexico Gas, was asked during Sunday’s press conference if people would be reimbursed for damage from burst water pipes caused by heating failure.

She replied, “Our efforts are fully focused on restoration of service and getting our customers back up and running, and that is what we need to focus on at this point in time. Anything beyond that will be dealt with after this emergency is concluded.”

Officials say they’re setting up an expedited process for damage claims. http://www.kob.com/article/stories/s1960944.shtml?cat=516&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Kobcom-AlbuquerqueMetro+%28KOB.com+-+Albuquerque+Metro+News%29


Why does a Michigan firm own New Mexico Gas Co.?

With a gas emergency declared this week in New Mexico and thousands without heat — a problem caused by low pressure in feeder transmission lines because of power interruptions in Texas — at least one goal with the PNM asset transfer was not met.

In 2008, Schreiber said, “We will consider it a success if the customer doesn’t even notice it’s going on. We want to fold the gas assets out of PNM Resources and not even have the customer notice it.”

Because Continental Energy is a private limited liability company, little is known about who has invested or its profitability, and Tom Domme, a vice president, said he could not share that information.

New Mexico Gas is required to file an annual financial report every year with the state Public Regulation Commission, but that was unavailable Friday since state offices were closed because of the gas emergency. http://www.santafenewmexican.com/Local%20News/Michigan-firm-owns-New-Mexico-Gas-Co-

Energy Advances New Mexico is an alliance of energy companies focused on realizing domestic energy solutions to help meet our nation’s energy demand, while reducing dependence on foreign resources.

Energy Advances New Mexico wants to persuade you to let them remove natural resources from New Mexico. Look at their ads here http://www.energyadvancesnewmexico.com/advertising If we let them take our resources, we have to be well compensated, as well as participate in the resources we are so rich in. Why are so many New Mexicans without gas in below freezing temperatures?

Energy Advances New Mexico (EANM) is an organization committed to educating New Mexican citizens about the importance of the oil and natural gas industry within the state. More than 30,000 New Mexico jobs depend on the industry, which is consistently one of the top contributors to the tax coffer.

EANM also highlights the state’s role as a national player, helping meet the nation’s energy demand through domestic solutions, while reducing our dependence on foreign oil. Brothers welcomed the opportunity to help this organization define their voice and raise awareness among the people of New Mexico. http://www.broco.com/clients-work/energy/energy-advances-new-mexico

Take your resources, take your money, and leave you in the cold with a wink and a smile?

The Energy Advances New Mexico (EANM) launch campaign is the industry’s way of introducing itself and its benefits to the citizens of the state.Using messaging that gives a nod toward renewable energy, EANM acknowledges the importance of the land to the state while educating citizens of the economic benefits of the industry – nearly 33% of all state funding in 2008 came from taxes on the industry.

EANM: ENVIRONMENTAL STEWARDSHIP This print campaign was developed to be used in coordination with Earth Day. The campaign focuses on preservation, restoration and respect for New Mexico’s most vital resource – its land. http://crg.iogcc.org/node/102

And if organizations and companies like those involved with Energy Advances New Mexico (and their friends in Alaska and offshore) are trying to “help meet our nation’s energy demand, while reducing dependence on foreign resources,” why do they take that oil and gas to the world market and make huge profits on it? If we really want our domestic oil to “help meet our nation’s energy demand, while reducing dependence on foreign resources,” it needs to go straight to our reserves.

Reminds me of a game of Threecard Monte.



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