Business Editor Leigh Irvin with the Farmington Daily Times reached out to WPX to talk about the number of industry rigs (4) in the San Juan Basin.
The number of rigs is rising compared to the past few years when local activity basically came to a halt after oil prices crashed to less than $30 per barrel. Today, prices are slightly above $50 per barrel.
In the interest of transparency, here’s how we responded to the question about what adding more rigs means for the region:
“At WPX, we’re planning to invest up to $170 million locally this year to run a rig, drill about 40 wells and build new infrastructure.
The uptick in activity supports a lot of local jobs. Our primary vendors alone employ roughly 800 people, approximately 40 percent of whom are Native American.
The corresponding increase in oil production also raises more money in state taxes and royalties for the government, private landowners and Navajo allottees who are now receiving close to $1 million per month based on the success of our new oil wells.
Overall, our activity has generated more than $200 million in taxes for the state, more than $200 million in royalties for the federal government and more than $150 million for private landowners over the past decade.
Navajo allottees have received close to $100 million in leasing and royalties from WPX over the past three years since our new oil discovery.
There’s much for the region to gain by strongly supporting this kind of economic development.”