During 1962, 1666 wells were drilled to an average depth of 5153 feet. The average drilling cost was $71,000 a well, representing a total investment of almost $120 million in a single year! Most of these wells were of the development (offset) type, but even then, 27 per cent were dry. During 1962, 295 true wildcats were drilled; of these, only 46 found oil or gas—about two out of every thirteen.
The story of oil just begins with the discovery of a well. Various special “completion” operations are applied to the oil-producing horizon so as to increase the flow into the well. The most common techniques are either by “acidizing,” pumping acid into the formation to increase flow by enlarging the pores in the rock, or by “hydrafracing,” whereby actual cracks are induced in the formation by pumping oil from the surface back into the well under very high pressure. After the well is “completed,” it may be a natural-flowing well if sufficient gas is associated with the oil. If sufficient gas is not present, then the well is pumped.
In recent years, considerable success has been achieved in revitalizing old fields where production had dropped below the point of economic operation. These fields are reactivated by forcing either water or gas down selected wells within the field, thereby forcing stagnated oil within the producing zone toward the other wells. This technique is called secondary recovery. Many fields will produce more oil under the secondary recovery program than they did during their primary life.
Here’s a wildcat for you!
Once the oil is on the surface, it passes through separators to remove any admixed gas from the oil. The gas is sent into pipelines while the oil is sent to storage tanks called tank batteries. Periodically, the oil is drawn from the tank batteries where it is transported by pipeline or rail to refineries. The great bulk of the crude oil leaves New Mexico for refining via a major pipeline network extending through Texas to both the Gulf and East coasts. Some oil is refined in New Mexico, however. Oil refineries in Artesia, Bloomfield, Ciniza, Farmington, and Monument have a combined capacity to treat some 30,000 barrels (42 gallons a barrel) of crude oil a day. On the other hand, practically all the natural gas is treated in New Mexico so as to recover its liquid petroleum constituents before sending it out of the state by pipeline.
MINING
The mining industry of New Mexico dates back to the days of Spanish rule. Copper was mined from the Santa Rita mine as early as 1800 for shipment to Mexico for use in coinage. Significant mining in New Mexico did not commence, however, until the late 1800’s. There are three major centers today: Carlsbad, potash; Silver City area, copper, zinc, and lead; and Grants, uranium.
Question: where are the other oil pumps and tanks in the San Juan Basin?