Methane Emissions

Environmental stewardship is our responsibility, and the oil and gas industry is actively working to reduce its emissions footprint — through electrification of operations, advanced monitoring, and investment in lower-carbon technologies — while continuing to supply the energy the world needs today. Some experts project renewable power could account for over 50% of global demand by 2050. Getting there responsibly requires a bridge, and New Mexico’s energy industry is helping build it.

Net-Zero Emissions and Our Commitment to Stewardship

The results of that work are measurable. New Mexico operators, through technological innovations and genuine commitment to stewardship, have driven significant emissions reductions. That is not a regulatory outcome. That is the oil and gas industry doing the work.

That progress comes from companies producing energy right here at home, under the most rigorous regulatory standards in the world. It matters where energy comes from and under what standards it is produced. Restricting domestic, regulated production does not lower global emissions — it moves them, shifting supply to less-regulated producers abroad. Domestic, regulated production is cleaner production: energy made here, under American standards, by American workers.

These reports by the New Mexico Environment Department document the state’s progress toward Gov. Michelle Lujan Grisham’s climate goals:

SB 18 — Clear Horizons Act (2026)

New Mexico’s business community supports and practices meaningful, achievable efforts to reduce emissions and protect the state’s natural resources. SB 18 proposes mandates and timelines that would significantly increase costs across the economy while outpacing existing infrastructure capacity, undermining affordability and economic stability for New Mexicans.

Rising Costs for Families and Consumers

SB 18 would increase costs for:

These cumulative impacts disproportionately affect working families, seniors, and rural residents who already spend a larger share of household income on basic necessities.

When we talk about energy policy, we have to put faces to the stakes: the family whose heating bill spikes, the student whose school loses funding, the worker whose career disappears before a replacement is ready.

Utility Costs Are One Component of a Larger Cost Burden

SB 18 would add another layer of cost pressure on top of these increases, accelerating a trend that reduces affordability and economic competitiveness.

Infrastructure and Grid Constraints

SB 18’s timelines do not align with current infrastructure capacity or economic realities. Shutting down reliable energy before alternatives are fully developed and scaled risks real harm to real people.

• The electric grid lacks capacity to support rapid, large-scale electrification without major new investment.
• SB 18 does not provide a funding or implementation framework to support necessary generation, transmission, and storage expansion.
• Without those investments, compliance costs will be borne by consumers and employers through higher prices and reduced economic activity.

Conflict with New Mexico’s Economic Priorities

SB 18 would undermine New Mexico’s and the Governor’s economic diversification goals by:

• Increasing operating costs for employers
• Discouraging capital investment
• Reducing job growth
• Shrinking the tax base needed to fund public priorities

A diverse energy portfolio takes resources to build — capital for R&D, infrastructure investment, workforce retraining, and the deployment of new technologies at scale. A strong, profitable domestic energy industry is the engine that funds the next generation of energy innovation. Expansion and a transition to a more diverse energy portfolio are not opposites — done right, one makes the other possible.

Loss of Legislative Authority

SB 18 hands sweeping policymaking authority to regulators, not legislators.

• There are no cost caps, no affordability protections, and no requirement for legislative approval as rules expand. If targets are not met, agencies are required to impose more regulation automatically.
• This bill exposes the state to serious legal risks and creates regulatory uncertainty.
• There are no meaningful safeguards for energy reliability or affordability.

A modern economy depends on reliable energy, and emissions are an unavoidable byproduct of essential activities such as food production, healthcare, manufacturing, transportation, and mining. The shared policy challenge is reducing emissions in a way that is both environmentally responsible and economically sustainable.

New Mexico’s businesses are pursuing emissions reductions in a way that is balanced, realistic, and economically responsible. SB 18 does not support or strike that balance.