SOURCE: oil price
The second-largest oil-producing state in the United States, New Mexico, has seen record oil and gas production and revenue in recent years thanks to booming activity in the Permian, the United States' main shale field.
Record oil revenues could begin to decline by 2030, New Mexico said late last year. The General Fund Consensus Revenue Estimate prepared by economists “highlights the strength of oil and gas as drivers of
current revenues, while then becoming a drag on revenue growth as global demand declines.” Also highlighting New Mexico's dilemma is a district court's decision last week to allow a lawsuit to proceed against the governor, the legislature and state agencies for failing to fulfill their state constitutional duty to protect against pollution from oil and gas extraction Current policies are not persistently reducing overall emissions, so the state is projected to emit 21% more climate pollution over the course of the decade than if it were consistently reducing emissions. emissions in accordance with the most recent science.” But the oil and gas sector, responsible for many of these emissions, is creating a revenue bonanza for the state of New Mexico. In 2023, the industry provided $13.9 billion in state and local revenue for New Mexico, with $7.5 billion going to the general fund and another $6.4 billion to the non-general fund, says the New Mexico Oil and Gas Association (NMOGA) . The New Mexico Legislative Finance Committee (LFC) last week reported revenue of $15.2 billion from the
extractive industry by fiscal year 2023, as oil and gas revenues for the state have more than quadrupled over the past five years. New Mexico expects the next few years to continue generating high revenues from oil and gas. The state has taken steps to ensure it has enough reserves in the General Fund in case of another oil industry crisis, but needs to rely less on the sector for property tax revenues that go to local governments, lawmakers and economists said. last week.
.
Comments