New Mexico methane rules slash emissions by half compared to Texas – Reductions generate $152M for New Mexico

SANTA FE - New Mexico Governor Michelle Lujan Grisham on Monday announced new satellite data showing New Mexico's methane rules cut oil and gas facility emissions in the Permian Basin by half compared to neighboring Texas.

The findings, released during U.S. Climate Week, demonstrate significant economic and public health benefits from the state's environmental policies.

Nine separate satellite observations collected and aggregated during 2024-2025 across the Permian Basin, including the Delaware sub-basin, showed New Mexico's methane intensity is 1.2% compared to Texas's 3.1% in the Delaware sub-basin. Methane intensity measures the amount of natural gas that escapes into the atmosphere during production relative to total output.

Since 2020, oil and gas production in this region of the Permian has increased approximately 20% in Texas and more than 100% in New Mexico, yet overall methane intensity has declined significantly in New Mexico. The methane captured in New Mexico is valued at $125 million in additional natural gas production and $27 million in tax and royalty revenue, creating additional economic opportunity for New Mexican families and returning money to taxpayers.

"New Mexico's methane regulations demonstrate that we can lead the nation in both energy production and environmental stewardship," said Lujan Grisham. "These smart environmental policies generate revenue for our state while protecting our air and fighting climate change."

Methane is a potent greenhouse gas that has more than 80 times the warming power of carbon dioxide during its first 20 years in the atmosphere. New Mexico enacted comprehensive methane rules in 2021 that Texas lacks. The rules require operators to minimize venting and flaring, use cleaner air-driven equipment, conduct regular leak detection and repair, and develop gas capture infrastructure.

These science-based improvements appear to be the primary factor identified in achieving these emission reductions and economic benefits, with the satellite data showing clear performance differences between states with and without comprehensive methane rules.

Economic advantages

The $125 million in captured natural gas represents energy that would otherwise be wasted. The additional tax and royalty revenue flows directly to state programs and local communities.

"This data proves science-based environmental regulations deliver tangible economic benefits," said James C. Kenney, cabinet secretary of the New Mexico Environment Department. "New Mexico's methane rules demonstrate that protecting air quality and reducing emissions protect New Mexicans and strengthen our energy sector."

"This satellite data provides the clearest evidence yet that well-designed methane regulations are both cost-effective and protective," said Jon Goldstein, associate vice president for Energy Transition at Environmental Defense Fund (EDF). "New Mexico's success under Gov. Michelle Lujan Grisham's leadership demonstrates that cutting methane pollution and waste delivers economic benefits while protecting air quality and our climate."

Advanced satellite technology

The findings are the result of orbital sensing technology and analytics developed by MethaneSAT, a subsidiary of EDF, supported by the Bezos Earth Fund, enabling high precision, high-resolution measurement of methane emissions over large areas.

An interactive website at https://www.methanesat.org provides detailed analysis of the satellite findings across the region.