New Mexico gas prices drop amid falling crude oil costs, economic uncertainty
AAA New Mexico Weekend Gas Watch reported Thursday the statewide average price for a gallon of unleaded fuel was $2.99. In Albuquerque, the state's largest city, gas is averaging $3.01, a decrease from $3.11 a week ago.
Santa Fe-area residents are paying the cheapest amount for gas, as a gallon of fuel is averaging $2.90, according to AAA, a 17-cent drop from the week prior. Farmington residents are paying the most; a gallon of gas in that area of the state is averaging $3.07. Las Crucens are paying $2.93.
AAA spokesperson Daniel Armbruster noted in a news release that the price of fuel is dropping during a time of year when it typically goes up. He said "supply and demand" is the main reason for the dip, adding that OPEC+ announced it's increasing oil production in May by more than 400,000 barrels a day.
"Crude oil prices have dipped below $60 per barrel for the first time since February 2021, putting downward pressure on retail gas prices," Armbruster said in a statement. "Because crude oil accounts for about half the cost of a gallon of gasoline, this decline is a key factor driving lower prices at the pump."
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Yahoo
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Analysis-Sliding US rig count outpaces efficiency gains, threatening onshore oil output
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Companies have been using newer, more efficient oil rigs, with improvements like autonomous drilling capabilities, more powerful horsepower, and technology that enables them to move without being taken down and rebuilt. "Right now virtually all operating rigs are the most efficient and highly upgraded rigs available. Drillers saw big efficiency gains because they upgraded to a bigger rig but there are no bigger rigs left to upgrade to," said Paul Mosvold, president and COO of Scandrill, whose company has seven rigs in the Haynesville and four in the Permian. "Now it is incremental and tweaking, whereas before it was a wholesale upgrade. Those things aren't going to make the level of efficiency gains we've seen in the last few years," Mosvold added. Energy consultancies have similar estimates for the number of rigs needed to keep production steady in the Permian Basin, ranging between 240 and 260. The Permian rig count last fell by one in the week to August 1, to 259, the lowest since September 2021, according to Baker Hughes. "We have seen a 25% improvement over the last few years in rig efficiency, but the rig count has fallen over 30% over that same period. Put simply, the rig count declines have begun to outpace drilling efficiency gains," said Brandon Myers, head of research at Novi Labs. "This is a recent development," he added. Market intelligence firm Energy Aspects expects the Permian rig count to continue falling, slipping below its own modeled 255 threshold for steady production, early next year. Consultancy Wood Mackenzie sees that basin's rig count falling to 245 in early 2026 as prices fall due to higher OPEC+ output. EFFICIENCY GAINS AND WELL PRODUCTIVITY The Permian has been at the heart of the U.S. shale revolution, propelling the country to the top spot in the league of global oil producers. 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"If the rig count drops don't turn around soon, we're going to see U.S. production declines well into 2026, including in the Permian basin," said Energy Aspects analyst Jesse Jones. He anticipates Permian production, which currently stands at 6.55 million bpd, to fall by 150,000 bpd to 6.25 million bpd in 2026, due to fewer rigs and completions as well as a degradation in well productivity. Declines in oil production as a result of a falling rig count will take six to nine months to show, due to the time it takes to drill and complete wells, analysts said. Novi Labs expects Permian production will fall slightly by the end of the year, before dipping into the sub-6.5 million bpd range in the first quarter of 2026. Meanwhile, Wood Mackenzie sees Permian output growth flattening in 2026 at 6.55 million bpd. The EIA projects output to average 6.53 million bpd in 2025, before edging down to 6.5 million bpd in 2026. "In 2020, when the rig count fell, operators drilled the best rock they were ever going to have. That high-quality inventory doesn't exist in that quantity anymore, and operators won't be able to do that again to the same degree," said Novi Labs' Myers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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Oil prices decline again amid worries about Opec+ supply hikes
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News24
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Petrol price relief from Wednesday, but diesel hiked
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