Remaining Oil & Natural Gas Resources of New Mexico

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Remaining Oil Natural Gas Resources of New
Mexico

• Ron Broadhead
• New Mexico Bureau of Geology Mineral Resources
• A division of New Mexico Tech

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Key Questions

• How much extractable oil and gas is left in New
  Mexico?
• How long will production last?

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Resource Categories
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Natural Gas

• Production history
• Reserves
• Resources
• How long?

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Natural Gas Resources
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How long will this last at present rates of
production (1.6 TCF/year)?
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Production History, U.S. Gas
From Potential Gas Committee (2000)
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Reserve Life Index
_Proved reserves_ Annual production
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Crude Oil

• Production history
• Reserves
• Resources
• How long?

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Oil Resources
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How long will this last at present rates of
production (67 MMBO/year)?
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Production History, U.S. Oil
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First Conclusions

• The Reserve Life Indices for oil gas have
  remained surprisingly stable over the last 20 to
  30 years
• Oil and gas resources have been moved from the
  undiscovered category to the discovered category
  at a rate approximately equal to production
• Undiscovered resources have been underestimated

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So how have oil gas been added to the resource
base to keep the Reserve Life Indices from
falling through the floor?

• Some notable examples

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Recovery enhancement
Waterflooding/pressure maintenance -Vacuum
Grayburg San Andres reservoir
From current work on DOE/PUMP project Digital
analysis portfolio of oil reservoirs in Permian
Basin
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Redevelopment of old fieldse.g. Dagger Draw
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Effect of Dagger Draw on NM Production
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Additional resources through new playsBrushy
Canyon discoveries
From current work on DOE/PUMP project Digital
analysis portfolio of oil reservoirs in Permian
Basin
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Additional resources through new unconventional
gas
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Other Emerging Possibilities

• Horizontal drilling in old fields (San Andres,
  Yeso Fms., SE NM)
• Unconventional gas sources (incl. shale gas, low
  K carbonates)
• New basin production (Raton coalbed methane,
  other areas)

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Second ConclusionsWhat will it take to keep the
decline in check?

• Renewal of old fields through redevelopment, EOR,
  etc.
• Discovery of new plays
• New sources of unconventional gas
• All of the above have their role

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And above all
Drill
Drill
Drill