XTO Energy, a subsidiary of ExxonMobil, plans to drill around 6,500 wells over a 40-year period in both Eddy and Lea counties in New Mexico.
That $55 billion in investment, which will include the building of facilities for drilling, as well as basic gas and oil extraction operations, is part of a larger $64 billion ExxonMobil is expected to eventually spend in the state.
A new report issued by the economic consulting firm of Impact DataSource additionally forecasts that ExxonMobil will spend upwards of $29 billion in New Mexico wages and benefits, creating more than 4,100 new jobs.
Eddy and Lea counties constitute a segment of the vast Permian Basin, a massive sedimentary basin which extends from just south of Lubbock to southern western Texas and finally southeastern New Mexico.
In recent years, ExxonMobil has increased its presence in the lucrative Permian Basin, adding some 22,000 acres to its portfolio through acreage trades and acquisitions.
Earlier this year the company also announced plans to up its Permian Basin oil production to around 1 million barrels a day over the next 5 years.
The company is now in the preliminary stages of building some 30 new oil and gas and water handling sites in the area.
Three months ago, members of the Carlsbad City Council voted in favor of selling for around $2 million just under 50 acres of land inside the Carlsbad Industrial Park to XTO Energy.
That land will be used for the construction of the company’s new regional headquarters.
By Garry Boulard
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