Circular 148 — New Mexico's Energy Resources '76 – Annual Report of Office of the State Geologist

By E. C. Arnold, et al., 1977, 27 pages.

For the last six years the production of crude oil and condensate in New Mexico has declined from the 1969 high of 129.2 million bbls (barrels). In 1975 production declined to 95.1 million bbls; the decline is expected to continue. Exploration for, and discovery of, oil must increase substantially if further decreases are to be averted. New enhanced recovery projects in older fields may help to slow the decline. Statewide natural gas production, which has been increasing since 1969, also experienced a slight decline in 1975. The decline can be attributed to a drop in northwestern New Mexico gas production since the contribution from southeastern New Mexico increased slightly in 1975. The tripling of the price of natural gas at the wellhead wil l stimulate new exploration and may result in new discoveries. New Mexico coal production totaled 9,559,920 tons in 1975, most of it from the Navajo and San Juan mines. The Federal Coal Leasing Act of 1975 made provisions for each state to receive an increased share of the monies generated from mineral extraction on Federal land. New Mexico, with its high percentage of federally owned lands, may expect a substantial increase in benefits under this act. The increasing use of coal as a fuel in electrical generating facilities will be the major factor in the future growth of the coal industry. Coal gasification plants, while still an uncertainty, would cause a huge increase in coal production. New Mexico ranked first in the nation in U3 08 production and reserves in 1975, and has contributed 40 percent of the cumulative production of U308 in the United States to date. Thirty-dollar forward-cost reserves total 302,700 tons of U308. Potential geothermal energy areas occur along the Rio Grande valley, and in the wes t-central and southwestern portions of the state. As of the fall of 1976, the U.S. Bureau of Land Management had issued a total of 64 geothermal leases in New Mexico.