New Mexico Oil and Gas Association

New Mexico Oil and Gas Association
Name	New Mexico Oil and Gas Association
Formation	1929
Type	Trade association
Headquarters	Albuquerque, New Mexico
Region served	New Mexico
Membership	Oil and gas companies, service providers, suppliers

New Mexico Oil and Gas Association is a trade association representing oil and gas producers, service companies, and suppliers operating in New Mexico and the San Juan Basin. Founded in 1929, it acts as an industry voice on regulatory, technical, and public affairs related to petroleum extraction in the Permian Basin and other producing regions. The association engages with state agencies such as the New Mexico Energy, Minerals and Natural Resources Department, interacts with federal entities including the U.S. Department of the Interior and the Environmental Protection Agency, and collaborates with academic institutions such as the New Mexico Institute of Mining and Technology.

History

The organization was formed during the late 1920s oil boom contemporaneous with development in the Permian Basin and the discovery at the Midland Basin. Early decades saw interaction with companies like Shell Oil Company, Texaco, ExxonMobil, and regional operators linked to the Santa Fe Railway and local landowners. Throughout the 20th century its activities intersected with landmark events including policies shaped after the New Deal and wartime fuel demands of World War II. In the 1970s energy crises connected to the 1973 oil crisis and the 1979 energy crisis influenced its advocacy, while late 20th- and early 21st-century developments in shale drilling and hydraulic fracturing paralleled advances in technologies developed at institutions like Sandia National Laboratories and Los Alamos National Laboratory.

Organization and Membership

Membership comprises majors, independents, and service firms such as Chevron Corporation, ConocoPhillips, Occidental Petroleum, drilling contractors like Schlumberger, and pipeline operators akin to Kinder Morgan. The association's governance typically includes a board of directors, committees for technical issues, and offices liaising with the New Mexico Legislature and the U.S. Congress. It maintains connections with other trade associations including the American Petroleum Institute, the Independent Petroleum Association of America, and state counterparts like the Texas Oil and Gas Association.

Activities and Programs

Programs emphasize workforce training, technical workshops, and safety courses often coordinated with the Occupational Safety and Health Administration and university programs at University of New Mexico. The group hosts conferences and seminars attracting participants from firms such as Halliburton and Baker Hughes', and partners with workforce agencies and vocational schools like Central New Mexico Community College. It also runs scholarship and outreach initiatives engaging tribal authorities such as the Pueblo of Zuni and regional economic development entities including the New Mexico Economic Development Department.

Policy and Advocacy

Advocacy efforts target permitting, lease management, and taxation administered by the New Mexico Oil Conservation Division and the Bureau of Land Management. The association has submitted comments on federal rulemaking by the Bureau of Ocean Energy Management and the Council on Environmental Quality, and lobbied state budget discussions in the New Mexico State Capitol. It often engages with policy debates involving legislators from delegations like the New Mexico congressional delegation and with administration officials from the Governor of New Mexico's office.

Environmental and Safety Practices

The association promotes compliance with state statutes such as the New Mexico Air Quality Control Act and works on methane emissions reduction initiatives paralleling programs in the EPA’s Clean Air Act regulatory framework. It collaborates with research centers including the New Mexico Environment Department and technical partners like Los Alamos National Laboratory and Sandia National Laboratories on produced water treatment, emission monitoring, and well integrity practices. Safety training draws on standards from the American Petroleum Institute and certification programs recognized by the Occupational Safety and Health Administration.

Economic Impact and Industry Data

Members contribute materially to state revenue streams including severance taxes and royalties managed through structures like the New Mexico State Land Office and funds connected to the Permanent Fund. Production metrics involve crude oil and natural gas volumes from the Permian Basin, San Juan Basin, and associated fields; analyses reference price movements tied to global benchmarks such as Brent crude oil and events impacting markets like the 2020 Russia–Saudi Arabia oil price war. Employment impacts relate to sectors represented by the Bureau of Labor Statistics and regional reports from the New Mexico Department of Workforce Solutions.

Controversies and Legal Issues

The association and its members have been involved in disputes over permitting, leasing on public lands administered by the Bureau of Land Management, and litigation concerning emissions and water management cited in cases appearing before federal courts and state tribunals such as the New Mexico Supreme Court. Controversies have included debates with environmental organizations like Sierra Club and Natural Resources Defense Council over hydraulic fracturing and with tribal entities over resource development on ancestral lands. Legal challenges have addressed compliance with standards under the Clean Air Act and Endangered Species Act where species protections intersect with development in sensitive habitats such as those near the Bitter Lake National Wildlife Refuge.

Category:Oil and gas industry trade associations Category:Organizations based in New Mexico