Dallas Fed: Texas and New Mexico energy production up

DALLAS — Energy production has increased considerably according to the Federal Reserve. The Federal Reserve Bank of Dallas energy report shows that New Mexico has become a U.S. leader in energy production over the past five years. The biggest reason, Permian Basin reserves in the southeastern corner of the state. Oil and gas proceeds are now funding an increasing share of state government, most notably involving education.

Dallas Fed research says that oil production in Texas has increased from 5.1 mb/d in 2019 to 5.7 mb/d in 2024, while in New Mexico, it rose from 0.9 mb/d in 2019 to 2.0 mb/d in 2024.

The researchers who put the report together say, “New Mexico has capitalized on its booming oil and gas industry to undertake investment policies in education, child care, health care, infrastructure and public improvements. Given that New Mexico has some of the top-performing wells in the Permian Basin, the overall outlook is promising.”

Other key points in the report include:

Overall, 2023 was a record year for wells placed online in the Permian, fueling New Mexico’s production gains.
Roughly two-thirds of crude oil production in the Permian portion of New Mexico is on federal lands.
Eddy and Lea counties—a combined population of 130,000 out of a statewide population of about 2 million—accounted for oil production of almost 2 mb/d at year-end 2024.