Chevron plans to ramp up production on the New Mexico side of the Permian Basin, one of the most prolific oil and gas regions in the US.

“We see great potential there,” said Healey, the company’s New Mexico asset manager. “Several factors have made it the place to be.”

Chevron announced its target to produce 1 million barrels of oil equivalent per day (mboe/d) in the Permian Basin by 2025, focusing on the most productive areas to reach this goal.

“It’s about delivering the affordable, reliable and lower carbon intensity energy the world relies on,” Healey said.

Notably, New Mexico region possess geological advantages in its rock formation that is rich in organic material capable of generating oil and gas under pressure over time.

Healey noted that the area’s undeveloped status means there is no concern about oil or gas depletion from existing wells, allowing for greater extraction potential.

“At the end of the day, we expect to get more out of the ground than we could in other areas of the Permian,” he said.

As one of the largest producers of oil and natural gas in the Permian Basin, Chevron recognizes the critical role that New Mexico plays in US energy independence.

Aligning its development strategy with the state’s regulatory focus on safety and environmental sustainability, Chevron uses electrical compressors rather than natural gas-fueled compressors to power its operations. It has also reduced the intensity of carbon emissions associated with its hydraulic fracturing equipment.

“Reducing the intensity of our carbon emissions has been a big part of the development story here,” said Healey. “We’re striving to develop the land with minimal impact on the environment and ensure that we’re not disturbing any wildlife through our operations.”