energy production is growing in new mexico

New Mexico's attractiveness is due in part to its high-quality source rock, said Healey. Source rock is rock that was formed with enough organic material to generate oil and gas when subjected to pressure over time.

"New Mexico's rock is very prolific," Healey said.

And since the area hasn't been developed before, there's no oil or gas depletion from other wells to worry about. Healey also noted that the thickness of the rock adds to the region's favorable geology.

"The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier," he explained. "At the end of the day, we expect to get more out of the ground than we could in other areas of the Permian."

Other factors contributing to the region's appeal include Chevron's strategic land position and thorough knowledge of the subsurface.