NEW MEXICO (KRQE) – The state says a new renewable energy project will bring in nearly $7 million to the state land trust. Chevron won an auction last Friday to expand solar energy production in Eddy County along 326 acres of state trust land.
Chevron Wells Drilled in 2021
The project, known as the Hayhurst New Mexico Solar project, is expected to include 55,000 solar panels, which will generate 20 megawatts of energy to serve Chevron’s electrical load needs in the Permian Basin. The second phase of the project is planned to generate 11 megawatts. These phases are contingent on the lessee obtaining grid-intertie permission from the local electric utility.
Chevron is one of the largest producers of oil and natural gas in the Permian. Our holdings total approximately 2.2 million net acres. Approximately 80 percent have either low or no royalty payments. That gives us a strong competitive advantage. In 2019, production in the Permian increased 44 percent over 2018. Forecasts call for continued double-digit growth. From 2015 to 2018, development and production costs decreased by approximately 40 percent, and well performance continues to improve.
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