In New Mexico, natural gas is both an economic driver and a core part of the state’s energy supply. As one of the top 10 natural gas-producing states in the U.S., New Mexico benefits from extensive reserves concentrated in two major regions: the San Juan Basin in the northwest and the Permian Basin in the southeast.

Historically, the San Juan Basin has been a significant source of conventional natural gas since the first commercial discovery in 1921. In the 1990s, it became a global leader in coalbed methane (CBM) production. However, production from this basin began to decline after the early 2000s, driven by shifts in market dynamics and industry focus.

Despite this decline, New Mexico’s overall natural gas production has rebounded sharply since 2017, largely due to shale gas development in the Permian Basin. This resurgence has reestablished the state as a major player in the evolving U.S. natural gas market. Today, New Mexico holds nearly 7% of the nation’s proved natural gas reserves.