The Biden administration’s recently announced moratorium on oil and gas development on federal lands will have devastating consequences for New Mexicans. Here are a few reasons why New Mexico will be one of the hardest hit states:
1. Puts $1.5 billion in state revenues at risk
Oil and natural gas provides $2.8 billion towards the state budget. The federal leasing moratorium risks the loss of $1.5 billion in state revenues, including $734 million to public schools, $344 million to human and healthcare services, and $85 million to public safety.
2. Decreases New Mexico’s energy output
New Mexico is the 3rd largest oil producer in the U.S., and accounts for 57 percent of the nation’s federal onshore oil production. This moratorium threatens New Mexico’s position as a national energy leader.
3. Puts 62,000 New Mexico jobs in jeopardy
Tens of thousands of jobs could leave New Mexico as oil and natural gas producers look to move their operations elsewhere. The industry is the lifeblood of our economy, and keeping energy jobs and development here at home, rather than outsourcing them abroad, has an enormous ripple effect on the entire state.
4. Undercuts American energy security
Last year, the United States regained its status as a net oil exporter. A continued moratorium on federal leasing could undo that progress while making the U.S. more reliant on foreign energy sources.
5. Creates unintended environmental consequences
Any action to restrict oil and gas activity in the United States only serves to reward other countries who do not share our commitment to environmental stewardship. New Mexico’s oil and gas producers have proven our ability to drive environmental progress and keep responsible energy production moving forward across our country.