With recent changes in policy, both at the state and federal levels of government, most oil companies and refineries in New Mexico are beginning to take tangible steps toward “going green.”

New Mexico has been steadily going green in the energy sector for some time now, mostly in the form of the implementation of wind turbines and solar panels. Now, it seems our state is going a step further in its expansion of renewable energy; the most recent example, according to an article in the Carlsbad Current-Argus, is a proposal that would add 500+ miles of power lines spanning from New Mexico to California that run off wind and solar power. While there is no definitive timeline on this particular project, it is a clear beacon of the coming transition. This is no longer a theoretical, “I will believe it when I see it” proposition. The push to green energy is in full swing. For the oil and gas industry, the question becomes: will companies be able to withstand the transition?

According to a 2020 CNN business article, oil companies across the country, Chevron being the most prominent example, are transitioning to clean, renewable energy sources and committing to either limit or completely halt growth on emissions within the next decade. That is a big deal, especially in a small community like Artesia, where the oilfield plays such a vital role.

For some, the future outlook of the industry is bleak. Former Artesia mayor, Ray Miller, believes the move toward clean energy practices could spell disaster. After opting not to run for reelection in 2021, Miller sold his company’s wells in the Permian Basin.  Miller disclosed his feelings to the Albuquerque Journal that he believed the shift would negatively impact oil and gas, stating, “Ten or twenty years ago, I would never have envisioned such a bleak outlook for the future of the industry.” It is not just the former mayor who holds this view; there is a wariness in most officials when discussing climate change and the federal and state regulations it places on local companies.

Where some see the proverbial glass as being half empty (and running out quick), other companies are embracing the change and adapting to the new frontier of clean energy. Holly Sinclair has quite a few plans in mind. Most notably, the company has made plans for a renewable diesel plant right here in the City of Champions. According to the company’s website, this unit will be able to hold an astonishing 200 million gallons of renewable diesel per year. It will cost the company anywhere from $125-$175 million to make it happen but is expected to make a fairly sizable profit (hollyfrontier.com).

While Holly Sinclair and other major Artesia establishments successfully implement clean energy operations, one has to wonder how viable such a task is for the smaller companies, not just those in Eddy County, but nationwide. How many of the little guys will have the manpower and cash flow to drop nearly $200 million on clean energy infrastructure?

It was Stephen Hawking who said, “Intelligence is the ability to adapt to change.” In respect to the clean energy shift that has been thrust upon Artesia and the Permian Basin, it is safe to say intelligence abounds. Regardless of the eventual outcome, the transition is upon us, and amidst all of the uncertainty, the City of Champions is doing what it does best—leading the way.