NM officials say methane rules have cut emissions by half compared to Texas

SANTA FE — The invisible line splitting the Permian Basin divides the oil-rich area into two different states — Texas and New Mexico — with two different sets of rules for doing business.

Gov. Michelle Lujan Grisham and environmental advocates said Monday that satellite observations over a recent year-long period show oil and gas operators are releasing emissions on the New Mexico side at less than half the amount as in neighboring Texas.

They attributed methane and clean fuel rules adopted several years ago by the Lujan Grisham administration for the difference, while pointing out the rules have not stopped surging oil production on the New Mexico side.

“The difference between New Mexico and Texas isn’t geology — it’s just policy,” the governor said during a Monday news conference at the state Capitol scheduled to coincide with the start of Climate Week.

Specifically, the methane intensity in New Mexico’s part of the Permian Basin was measured at around 1.2% by researchers with the Environmental Defense Fund, who compiled nine separate satellite observations from a space mission called MethaneSAT. The methane intensity on the Texas side was measured at 3.1%.

Methane intensity is an industry standard that compares the amount of emitted methane, a potent greenhouse gas, to the amount of gas that is produced and sold. Overall, emissions in the Permian Basin are more than twice as high as any other fossil fuel-producing region in the country, according to satellite data.

Jon Goldstein, an associate vice president for energy issues with the Environmental Defense Fund, described the findings as the clearest proof yet that New Mexico’s efforts to reduce emissions from oil and gas producers are working.

“As Washington, D.C., retreats, the state of New Mexico is moving forward,” said Goldstein, who was also the state’s energy secretary under former Gov. Bill Richardson.

He said the lower methane intensity on the New Mexico side of the Permian Basin means an additional $125 million in natural gas captured annually, leading to an estimated $27 million in state royalties and revenue.

Lawsuits don’t slow booming oil production

New Mexico recently became the nation’s second-highest oil-producing state — behind only Texas — and more than 67,000 barrels of crude oil were produced in June alone. That’s more than was produced statewide during all of 2010, according to federal data.

But some New Mexicans say that production boom has come at a high cost, citing public health issues in the Permian Basin and Four Corners region, where much of the oil and natural gas activity is located.

A group of Native American activists and environmental groups filed a lawsuit in 2023, claiming the state’s failure to enact strict pollution control measures has led to damaging health issues. The state Court of Appeals dismissed that lawsuit in June, prompting the plaintiffs to appeal to the New Mexico Supreme Court.

Lujan Grisham said Monday that litigation is difficult to avoid when it comes to energy policy, adding, “Someone is going to sue us on either side of this equation.”

But she also defended what she described as a “pragmatic” approach to regulating the state’s oil and gas industry, saying attempts to curtail all drilling are not practical.

“That would be perfect for the globe, but I don’t know how we’d turn the lights on,” Lujan Grisham told reporters.

Meanwhile, oil and gas industry officials have said technological advances in recent years have allowed for more efficient fossil fuel production.

Missi Currier, the president and CEO of the New Mexico Oil and Gas Association, said Monday the methane emissions report confirms that responsible energy production and environmental stewardship go hand in hand.

“We’re proud to produce affordable, reliable and increasingly sustainable energy that powers New Mexico and the world,” Currier said in a statement.

NM’s tenuous greenhouse gas goals

Shortly after taking office in 2019, Lujan Grisham signed an executive order directing the state to reduce greenhouse gas emissions by at least 45% by 2030 when compared to 2005 levels. The order also called for a climate change task force to study ways of achieving that goal.

However, subsequent attempts to codify those deadlines in state law have been unsuccessful at the Roundhouse, meaning the order could be undone by a future governor.

In addition to the governor’s order, the state Oil Conservation Commission adopted a methane waste rule that took effect in May 2021 and requires all fossil fuel operators to capture 98% of all produced natural gas by the end of 2026. The methane rule also prohibits routine venting and flaring.

State Environment Secretary James Kenney said his agency has been aggressive in investigating potential violations of the methane rule, citing hefty fines levied against some producers.

He also said steady, incremental change can be more effective when it comes to achieving climate-related goals than far-reaching policy mandates.

“Do I personally want change faster? Absolutely,” Kenney said. “But sometimes we need a big tent with a lot of voices.”