In most places in the United States, including New Mexico, oil and
gas discovered on one's land would be seen as a blessing, and in fact
large fortunes have been made through surface leases and royalties.
After all, oil and gas have been integral to our daily lives for more
than a century and will remain so for the foreseeable future.
Eventually, economically viable (i.e. without government subsidies)
alternative forms of energy might be found, but until then, oil and gas
production benefits not only industry investors and company
shareholders, but workers, landowners and government coffers.
Unfortunately, the fact that oil and gas drilling in the Galisteo
Basin is even being considered by Houston-based Tecton Energy has
caused an ill-informed but vocal group of anti-growth activists to
protest that Tecton might make a profit on a venture in which they are
willing to invest their own capital despite a significant risk of
failure. If they do not succeed in their quest, only they and their
investors lose: If successful, everyone wins.
Before we run Tecton out of town and the Galisteo Basin is shut off
from future exploration, let's look at the real issues, free of
emotion. We all benefit from oil and gas production, from fuel for our
automobiles, to fuel for the trucks that deliver food and other
products to local stores. Beyond transportation, plastics used by
everyone are hydrocarbon-based.
Clean-burning natural gas is used for home heating and provides
18 percent of America's electricity generation, a number which is
growing rapidly. Gas is really today's clean, alternative energy
source, but more is needed to offset declining U.S. production. Perhaps
the Galisteo Basin will yield gas as well as oil — only drilling will
tell.
Since Santa Fe County has no production yet, its residents benefit
from long-established reserves in places like Farmington, Hobbs,
Artesia and Roswell. If it is acceptable there, why are Santa Fe
residents so against drilling in the Galisteo Basin? An old adage in
the oil business is simply "oil is where you find it." In other words,
we cannot dictate where Mother Nature and the ancient processes of
geology created it. The Galisteo Basin just might be one of those
favored places!
Part of the issue is undoubtedly the fact that the median household
income in Santa Fe is in excess of $42,000, while in San Juan County
the number is $34,000, in Chaves County it is $28,500, and in Lea
County the figure is $30,000.
To an objective outsider it would seem that for some local
opponents of oil and gas production, such activities are fine for the
folks in the northwestern and southeastern parts of the state, but
heavy industry should be kept out of their sight. Many oppose
exploration and production based on environmental concerns, primarily
on the perceived threat of damage to fresh water aquifers.
This is a valid concern, but standard industry practice entails
installing steel casing through aquifers that are usually shallower and
separate from the objective oil and gas zones. Thus, the aquifers are
sealed off from any contamination. Modern technology will utilize
centralized drilling and production pads, limiting wellheads and
facilities to a small footprint.
If the residents of the Galisteo Basin are so committed to
preventing exploration of legally acquired surface and mineral rights,
they and any other sincere residents of Santa Fe should form a
consortium to buy those rights from Tecton and forego the rewards of
potential oil production. They could even sell the water to Santa Fe,
as a value will have been placed on that valuable commodity!
As residents of New Mexico, a state that is reliant for a greater
percentage of its budget on severance taxes than all but Alaska and
Wyoming, we benefit from the largesse that oil and gas revenue brings
to the state. Before stopping drilling in Galisteo Basin, we should
look at the pluses and not just the perceived minuses of drilling.
Santa Fe County resident James B. Taylor serves the Río Grande Foundation as an adviser on oil and gas issues.
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