Chevron is ramping up its oil and gas production in the New Mexico sector of the Permian Basin, a region known for its abundant reserves. The Houston-based energy giant aims to achieve a production target of 1 million barrels of oil equivalent per day (mboe/d) in the Permian Basin by 2025. According to Duncan Healey, Chevron’s asset manager for New Mexico, the area's high-quality source rock and significant untapped reserves are pivotal to this ambitious expansion. Healey noted, “The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier.” He emphasized that this geological advantage allows Chevron to extract more resources compared to other locations within the Permian.

The strategic landholdings Chevron possesses, along with its in-depth understanding of the subsurface geology, further enhance the region's attractiveness. The company's development approach in New Mexico is also in line with the state's regulatory emphasis on safety and environmental responsibility. To comply with environmental standards, Chevron is implementing cleaner technologies, such as electrical compressors in place of natural gas-fueled units. The company has also reported advancements in reducing the carbon intensity associated with its hydraulic fracturing processes.

Chevron is not the only company expanding in this lucrative basin. Viper Energy and its operating subsidiary, Viper Energy Partners (OpCo), are also making strides by acquiring subsidiaries of Tumbleweed Royalty IV, a US pipeline operator. Additionally, Oneok is increasing its footprint in the Permian Basin through two significant acquisitions: a 43% interest in EnLink Midstream from Global Infrastructure Partners (GIP) and GIP’s equity interests in Medallion Midstream, with a total transactional value of approximately $5.9 billion.

The combined efforts of Chevron and other industry players indicate a robust growth trajectory for oil and gas production in New Mexico’s Permian Basin. As these companies capitalize on the region’s rich resources, the focus on environmentally responsible practices will likely shape the future of operations in this critical energy sector.

Chevron Corporation is a leading American multinational energy company primarily focused on oil and gas. It is the second-largest direct descendant of Standard Oil and was originally known as the Standard Oil Company of California. Active in over 180 countries, Chevron operates with a vertically integrated model within the oil and gas sector, engaging in hydrocarbon exploration, production, refining, marketing, transportation, chemicals manufacturing and sales, as well as power generation.  Chevron's oil and gas exploration and production activities, classified as "upstream" operations in the industry, are mainly located in the United States, Australia, Nigeria, Angola, Kazakhstan, and the Gulf of Mexico.