MethaneSAT observations reveal lower methane intensity in New Mexico's Permian Basin associated with emissions control

Satellite observations of the Permian Basin - the United States’ largest oil- and gas-producing region - show oil and gas operators on the New Mexico side of the Permian Basin are releasing less than half the amount of methane relative to their production than operators next door in Texas. The lower methane intensity corresponds with better standards helping to clean air and reduce waste.

Methane is both the main component of natural gas and a powerful climate pollutant. Reducing methane emissions from oil and gas operations has been a key focus area both for energy companies looking to reduce waste and for policy makers seeking to protect the public from serious climate risks.

According to nine separate observations collected and aggregated, during 2024-2025, across the Permian Basin that includes the Delaware Sub-Basin, the methane intensity in New Mexico is around 1.2%, whereas in Texas it is 3.1%. Methane intensity is the amount of methane emitted compared to the amount of gas that is produced and sold. It is an accepted industry standard for tracking and analyzing methane performance.

Based on this analysis, New Mexico’s lower methane intensity generated an additional $125 million in natural gas captured annually, adding $27 million in royalties and revenue for taxpayers.

Oil and Gas Methane Intensity in the Delaware Sub-Basin

Since 2020, oil and gas production in this region of the Permian has increased ~20% in Texas and more than 100% in New Mexico. Both regions have young well populations—about 40% under five years old— which account for 70% of current production. Total gas production was also closely aligned, suggesting that other mechanisms, beyond production characteristics, likely explain the observed differences in methane intensities. Researchers associate this to the implementation of effective emissions reduction strategies, which New Mexico began implementing in 2021 under the leadership of Gov. Michelle Lujan Grisham.

How New Mexico’s standards may have led to lower methane intensity

A review of the standards for oil and gas methane emissions that exist in Texas compared with New Mexico reveals stark differences in the ways each state manages methane.

“This satellite data provides the clearest evidence yet that well-designed methane regulations are both cost-effective and protective. New Mexico's success under Governor Michelle Lujan Grisham’s leadership demonstrates that cutting methane pollution and waste delivers economic benefits while protecting air quality and our climate.” - Jon Goldstein, Associate Vice President, Energy Transition

Although methane intensity in the Delaware Sub-Basin is significantly lower in New Mexico than in Texas, at more than 1% it is still appreciably high. Continued efforts are needed to reduce intensity down to 0.2% of production in order to align oil and gas industry commitments. Cumulatively, it is estimated that the Permian Basin emits approximately 440 metric tons of oil and gas methane per year. This equates to more than $577 million of wasted gas and ranks the Permian as the most wasteful oil- and gas-producing region in the country.

Measuring methane and future analysis

The findings are the result of orbital sensing technology and analytics developed by MethaneSAT, enabling high precision, high-resolution measurement of methane emissions over large areas.

Communications with the MethaneSAT instrument were lost in June 2025. Tracking similar changes in methane intensity over this region will require additional emissions tracking and verification via alternative technologies and methods, including MethaneAIR, GOSAT-GW and others.

This work was supported by the Bezos Earth Fund.

Staff perspective

MethaneSAT's high-precision measurements and data analytics were used to produce quantitative and policy-relevant insights at the sub-basin and state levels across the Permian Basin. This is a significant advancement in emissions quantification capability that enabled resolving emissions at high resolution and aggregating multiple observations - in turn revealing significant regional differences in methane intensity.

Ritesh Gautam

Lead Senior Scientist, MethaneSAT