Chevron is intensifying its oil and gas production in the New Mexico side of the Permian Basin, a region renowned for its prolific oil and gas reserves.
The Houston, Texas-based oil and gas major plans to 1mboe/d in the Permian Basin by 2025.
The company’s New Mexico asset manager, Duncan Healey, highlighted the area’s high-quality source rock and untapped reserves as key factors in this strategic expansion.
“The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier,” he said.
“At the end of the day, we expect to get more out of the ground than we could in other areas of the Permian.”
The company’s strategic land position and knowledge of the subsurface contribute to the region’s appeal.
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By GlobalDataChevron’s development strategy in New Mexico aligns with the state’s regulatory focus on safety and environmental stewardship.
In line with environmental regulations, Chevron said it is adopting cleaner technologies such as using electrical compressors instead of natural gas-fuelled ones.
The company also claims to have made progress in reducing the carbon intensity of its hydraulic fracturing operations.
Other companies expanding their presence in the basin include Viper Energy, along with its operating subsidiary Viper Energy Partners (OpCo), which agreed to acquire subsidiaries of Tumbleweed Royalty IV, a US pipeline operator.
Oneok is also expanding its operations in the Permian Basin through two acquisitions comprising a 43% interest in EnLink Midstream from Global Infrastructure Partners (GIP) and GIP’s equity interests in Medallion Midstream, for a total transactional value of $5.9bn.
