Some of the biggest names in energy production in New Mexico recently signed on to a national effort within the oil and gas industry to curb methane emissions. Industry officials in New Mexico say BP America, Chevron, Conoco Phillips, Devon Energy consider that their efforts to reduce emissions should be a priority, that the work is already underway, and has led to lower methane levels.
These companies, along with others, have agreed to participate in programs that focus on addressing leaks and repairing or replacing certain pneumatic controllers at wells and other sites that are known for releasing methane. Companies are even using drones to monitor for leaks. These emissions certainly pose health risks, an issue that can be addressed by Hobbs NM oil and gas insurance.
Addressing these concerns
State regulators a few moths ago testified before a panel of lawmakers that the most recent figures at the time showed a more than 50 percent decrease in emissions in New Mexico over the past year from venting and flaring during the initial stages of oil and gas production.
Environmentalists, however, have argued that emissions are higher than what state and federal regulators have measured and that unintentional releases are not being accounted for. They say New Mexico is losing out on taxes and royalties that would be earned if more of the gas were captured.
“The oil and gas industry has invested more than $13 billion in southeastern New Mexico’s Permian Basin this year, creating a new drilling boom. While some of those drillers have committed to measures to limit methane waste and pollution, we have a long way to go. We need consistent standards,” said Michelle Lujan Grisham, U.S. Representative for New Mexico’s 1st congressional district.
Oil production in New Mexico has shot up 70 percent since 2008. The number of active wells across the state has grown to 60,000. Fracking has, of course, created more jobs and contributed to record-low natural gas prices, this may however come with the potential risk to the environment and added health concerns that has many people speculating.
Still, the cost of everything we purchase has an energy component to it, either in its manufacture or its shipping or its packaging. So it’s important to the economy to have energy prices that are relatively low. The pros and cons are always being weighed ad considered. Companies with Hobbs NM oil and gas insurance are, at the very least, ready to deal with issues that may arise.