With New Mexico’s portion of the prolific Permian Basin in full gear, the state reported record revenue of $3.1 billion from the oil and natural gas sector in 2019, nearly one-third higher than the $2.2 billion in 2018.
Oil and gas revenues made up 39% of the fiscal 2019 general fund budget, according to the New Mexico Oil and Gas Association (NMOGA). New Mexico is the third largest oil producing state and the ninth largest natural gas producer.
The benefits are spread throughout New Mexico, even though the industry is centered in the southeastern and northwestern corners, said NMOGA’s executive director Ryan Flynn.
“The impact of the industry’s success is visible in every community in New Mexico,” he said.
The Texas Oil & Gas Association earlier this month reported a record $16 billion was paid by the industry in combined state/local taxes and royalties last year.
Permian Basin Petroleum Association President Ben Shepperd said robust production from the Permian, the biggest North American play, has created jobs and prosperity, and given lawmakers in New Mexico and Texas the ability “to utilize the tax dollars generated by this production for sweeping and monumental investments in areas like education, infrastructure and health care.”
Going forward, there are “challenges and opportunities” in the Permian, Shepperd said, but “by promoting a sensible and consistent regulatory environment, each state can expect that the industry will continue to generate beneficial public returns on private investment and be available to support vital state services.”