Due to the recent oil production surge in New Mexico and West Texas, another industry is flourishing: railroads. Railroads play a vital role in the oil industry through helping transport oil and other profitable byproducts such as potash to market. For comparison, in 2016, there were about 150 Southwestern rail cars daily in the Carlsbad region, equating to 4,250 rail cars per month. In 2017, operations transferred from Southwestern to Burlington Northern Santa Fe (BNSF) and the area experienced drastic growth. There were approximately 400 BNSF rail cars per day that passed through the division or about 12,000 cars per month, equating to 182 percent year over year growth. Permian Basin oil production expects continued growth, and railroads and other industries are focused on keeping up with the demand.Continued Investment in InfrastructureRailroad companies see the importance of maintaining their rail infrastructure to keep up with future volume. Since 2017, BNSF has completed numerous improvements including replacing approximately 36 miles of rail and other equipment such as ties, switches, and bridges. Additionally, twenty-five rail crossings have been repaired or replaced at no cost to local road authorities. Capital investment is also being increased to ensure long-term safe and reliable rail networks to current and future customers. In 2018, BNSF spent $3.4 billion with most funds allocated to rail upkeep and operational improvements to decrease unscheduled outages.Positive Side-Effects and the FutureLastly, railroad industry leaders also see a need for new infrastructure including pipelines and roads to sustain the demand. Approximately $500 million of the $3.4 billion of projected capital expenditures was dedicated to expansion efforts that also positively benefit the local community. A third mainline was constructed between Belen and Dailies that both improved traffic for residents and produced larger transportation capacities.Oil production growth continues to make opportunities for New Mexico and other industries. The rail industry is dedicated to meeting the demands of customers through continued investment.
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Chase Energy Services
Chase Energy Services is one of the largest privately held integrated oilfield services company in the US, providing end-to-end oilfield services through an experienced management team, innovative technologies and an unrelenting focus on safety. With more than 500 employees, the company serves customers across Southeast New Mexico and West Texas in frac and acidizing, well construction and completion, cementing solutions and well servicing. learn more
Chase Energy Services, Inc.11344 Lovington HWYArtesia, NM 88210(575) 748-1288
