New Mexico’s Oil Production Is Soaring

New Mexico’s Oil Production Is Soaring

February 10, 2020

In New Mexico, the energy industry provides over 100,000 jobs and provides a critical service to communities across the entire country. Despite its importance to both the nation and New Mexico, Governor Grisham seems intent on putting an end to the industry.

Power The Future recently noted that Grisham supported the Energy Transition Act, legislation that aggressively limits the oil and gas industry, and then traveled to New York City to participate in a climate change panel. It’s no surprise that New Mexicans haven’t responded positively – Grisham’s approval rating has dropped nine points in the past few months.

Thankfully, in spite of Grisham’s best efforts, the energy industry continues to thrive. The Albuquerque Journal reports:

As of November, last year’s production on New Mexico’s side of the Permian Basin had reached 297 million barrels, up 33% from the first 11 months of 2018, according to the latest statistics from the state Oil Conservation Division. When December tallies are in, total 2019 output is expected to soar well past the 300 million mark.

New Mexico is now the nation’s third-largest oil-producing state. Revenue from the industry accounted for 39% of all state general fund revenues in 2019, the highest share in recent history.

Government economists project $797 million in “new money” for the FY 2021 budget that begins in July, providing the state Legislature with another annual windfall of cash to fund programs during this year’s session, which began in January.

The oil and gas industry has done a lot for New Mexico, and that contribution is expected to continue. To make sure these benefits reach New Mexicans, we need to support and encourage this booming industry – not put a ceiling on it.