Natural gas production in NW New Mexico declines
Posted at: 03/11/2013 3:40 PM
By: The Associated Press
FARMINGTON, N.M. (AP) - Natural gas production in northwestern New Mexico's San Juan Basin continues to sink.
Production dropped 4.2 percent in 2012 for the sixth straight year of declining production in the region.
Northwestern New Mexico produced 780 billion cubic feet of natural gas in 2012.
That's down from about 815 billion cubic feet in 2011 and the lowest production level for the region since 1992's production of 733 billion cubic feet.
The Daily Times reports that the drop in drilling is a result of low prices.
Dugan Drilling President Tom Dugan says it's hard to drill and make a profit with current prices for natural gas.
Some drillers are reacting by moving operations to other states, not filling vacancies and refocusing their operations on oil.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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