A new report released in November by global research and consulting firm IHS Markit says the U.S. is headed for a “major slowdown,” reflecting today’s moderate oil prices, investor reluctance to continue pumping huge sums into companies that have shown only modest returns on capital, and significant productivity declines in shale-oil fields.

That poses substantial challenges going forward.

But a prolonged bust is unlikely, and New Mexico may be less affected than other places. That’s because the Permian Basin in West Texas and southeastern New Mexico remains at the forefront of the shale revolution, thanks to its rich resources, low production costs and the huge gushers that flow from wells drilled there.

As a result, New Mexico is well-positioned to navigate through the current headwinds, said Raoul LeBlanc, IHS Markit’s vice president for North American unconventionals.

“The Permian has an inventory of highly productive wells yet to be drilled that will last many years,” LeBlanc told the Journal. “New Mexico is in a really good spot. It’s proven extremely productive compared with anywhere else.”

Many companies are cutting back on investments in less lucrative zones to refocus on their most productive assets. That bodes well for New Mexico’s side of the Permian, where operators can still tap into rich, productive pools of hydrocarbons at lower cost than in other places."