For the complete article use this link–> http://www.bizjournals.com/albuquerque/blog/morning-edition/2015/11/nm-energy-outlook-summit-forecasts-hazyfor.html
Panelists at Business First’s second annual New Mexico Energy Outlook Summit yesterday offered but one common ground: Something needs to be done to turn the industry around.
Emceed by ABF publisher Candace Beeke, the event brought together Dr. Daniel Fine, associate director of the New Mexico Center for Energy Policy at New Mexico Tech and a senior policy analyst in the New Mexico State Department of Energy Minerals and Natural Resources; Ron Darnell, senior vice president of public policy for PNM Resources (NYSE: PNM); Bob Gallagher, president of RMG Consulting; and Regina Wheeler, chief executive officer of Positive Energy Solar.
Ron Darnell, senior vice president of public policy at PNM Resources, speaks during Thursday’s New Mexico Energy Outlook Summit while Regina Wheeler (left), CEO of Positive Energy Solar, looks on.
Over the course of 90 minutes, which included a keynote speech delivered by Fine and a panel discussion, the group addressed questions about the state of the energy industry in New Mexico and the United States, what 2016 might look like for the oil and gas industry and possible solutions to the current industry slump. While driven, in part, by audience-submitted questions, everyone offered a much differing perspective.
In his keynote speech, Fine said he was “coming with realism and bad news” and believed that while no one can forecast the price of oil, “we should prepare for 2003 prices.” He estimated that the price of oil could drop to the $22 to $28 range by June 2016.
Fine also said that the state could see a 10 percent reduction in shale production by that time, as well. He cited increased foreign production of oil over the last couple of years, China’s stabilization at a lower growth rate, decreased commodity demand and the Organization of Petroleum Exporting Countries’ (OPEC) price war with the U.S. shale industry.
For the complete article use this link–> http://www.bizjournals.com/albuquerque/blog/2015/11/publishers-noteenergy-industry-critical-to-new.html by Candace Beeke is the president & publisher of Albuquerque Business First
It’s time to talk seriously about the energy industry in New Mexico. And you have some work to do.
Whether your business is directly involved in this industry, it’s very much tied to its outcomes — and right now, there’s much concern about that in the state. After all, some 30 percent of New Mexico’s tax base comes from oil and gas. And you’ve read the headlines we’ve been reporting on how that sector is faring. If you haven’t, let me recap — it’s a fracking mess. The price of oil dropping more than a year ago has resulted in rapid cost cutting from many of the energy majors, including ConocoPhillips (NYSE: COP) and Halliburton Co. (NYSE: HAL), both of which have major operations and workforce in New Mexico — although smaller now.
Some 30 percent of New Mexico’s tax base comes from oil and gas.
But that’s just one sector of energy. At Albuquerque Business First’s Energy Outlook event Nov. 12, we will hear from the CEO of one of the fastest-growing companies in New Mexico — Positive Energy Solar. And Positive wasn’t the only energy player on ABF’s List of gazelle companies this year. Affordable Solar Group ranked high and made Inc.’s list of fastest-growing companies, as well.
In addition to solar, we will hear from New Mexico energy giant PNM Resources (NYSE: PNM), which has its hands stretched into multiple sectors of energy. We’ve also added oil and gas expert Bob Gallagher, whom many of our readers will remember from his decade of leading the state’s oil and gas association, NMOGA, as well as his time as advisor to the U.S. Secretary of Energy. Gallagher tells me it’s not all doom and gloom in New Mexico oil and gas. In fact, he knows of pockets in the state that are growing rapidly and seeing strong new investment.
But New Mexico doesn’t operate in an energy vacuum. It’s critical for our companies — whether involved directly in energy or on the periphery of it, as most of us are — to understand the global and national challenges facing this industry. Dr. Daniel Fine from the Center of Energy Policy at New Mexico Tech will give us that broad overview and tell us what’s coming in the future.
By Kevin Robinson–Avila
Information from: Albuquerque Journal, http://www.abqjournal.com
FARMINGTON, N.M. (AP) — The oil and gas industry is getting excited about a potential boom in northwestern New Mexico.
Preliminary results from some of the 22 exploratory wells drilled in the Mancos shale formation in the San Juan Basin show commercial potential for production, according to industry executives who visited Farmington this week.
Ken McQueen of Oklahoma-based WPX Energy Inc. told the Albuquerque Journal (http://bit.ly/Yv3MkJ ) that two wells the company drilled in 2010 in a dry natural gas section of the Mancos have produced 2 billion cubic feet of gas so far. He described the area as an “attractive target” to pursue.
“These two wells are in the top 10 best wells drilled by WPX to date,” he said. “They’re quite extraordinary for us.”
Energy development companies were hopeful about the prospects for liquid natural gas and oil in other sections of the Mancos formation.
Mancos shale is sandwiched between soft sandstone layers in the San Juan Basin that producers have been exploiting for decades. Modern drilling techniques allow resources trapped inside the rock-hard shale to be tapped. Three dimensional imaging helps pinpoint oil and gas deposits, while hydraulic fracturing and horizontal drilling can access the deposits.
“I’m bullish on the Mancos,” said T. Greg Merrion, president of Merrion Oil and Gas Corp. in Farmington. His company is partnering with Denver-based Bill Barrett Corp. to drill exploratory oil wells in the area.
“We’ve already seen a number of wells drilled that are economic,” Merrion said. For more of the article go to–> http://washingtonexaminer.com/oil-gas-wells-in-northwestern-nm-show-potential/article/feed/2082202
By Dr. Daniel I. Fine
Nearly 40 years ago, when the first oil price shock from the Middle East and OPEC disrupted the American economy, North Carolina and Appalachia briefly became an oil and gas frontier. Following geological investigations, Chevron drilled an exploratory well in the Deep River Basin beneath Lee County, N.C. Oil was discovered at 5,000 feet, but it contained excessive paraffin and Chevron plugged the well.
It remains there today as a new natural gas and oil technology has emerged: the capability of opening tight rock formations or shale through hydraulic fracturing and horizontal drilling.
Why is North Carolina not yet a site for drilling rigs, mud and service companies? Why is there shale gas exploration and production in the Marcellus Shale in Pennsylvania and West Virginia, and on different rock formations in Arkansas, Texas and in the Rocky Mountains?
The answer is political.
Dr. Fine writes “Nearly 40 years ago, when the first oil price shock from the Middle East and OPEC disrupted the American economy, North Carolina and Appalachia briefly became an oil and gas frontier. Following geological investigations, Chevron drilled an exploratory well in the Deep River Basin beneath Lee County, N.C. Oil was discovered at 5,000 feet, but it contained excessive paraffin and Chevron plugged the well. and asks the question: Why is North Carolina not yet a site for drilling rigs, mud and service companies? Why is there shale gas exploration and production in the Marcellus Shale in Pennsylvania and West Virginia, and on different rock formations in Arkansas, Texas and in the Rocky Mountains?