Revenue Climbs $465 Million from 2017 to 2018
SANTA FE, NEW MEXICO – New Mexico state revenue from oil and natural gas production has reached a record high according to a new analysis from the nonpartisan New Mexico Tax Research Institute. The report shows that New Mexico’s General Fund and public schools benefitted from $2.2 billion in oil and natural gas taxes and revenues in fiscal year 2018, an all-time high and an increase of $465 million from fiscal year 2017.
“Across New Mexico, communities and public schools are seeing the enormous impact and benefits provided by a thriving oil and natural gas industry in our state,” said Ryan Flynn, Executive Director of the New Mexico Oil and Gas Association. “2018 has been a record-breaking year for oil and natural gas production in New Mexico, and as a result our state has unprecedented opportunities to invest in public education, build new roads, and invest in other parts of our economy. Record-breaking can and should be the new norm for New Mexico, but that also goes hand in hand with continuing the policies that have allowed oil and natural gas development to flourish.”
Oil and natural gas revenue pumped $1.06 billion in funding for education in fiscal year 2018, supporting nearly $822 million for primary and secondary education, and $241 million for the state’s universities, colleges, and other higher education institutions. That’s an increase of $128 million over 2017 funding levels, or enough to hire more than 2,300 new teachers.
While most of New Mexico’s oil and natural gas production is concentrated in the southeast and northwest corners of the state, population centers along the Rio Grande corridor like Albuquerque and Las Cruces benefit the most. Oil and natural gas revenue supplied Albuquerque Public Schools with $205 million, while Las Cruces Public Schools brought in $59 million. The University of New Mexico led higher education institutions with $60 million, followed by New Mexico State University with $50 million.
Driven by bustling activity in the Permian Basin, New Mexico leaped California and Oklahoma last year to become the third-largest oil producer in America and has been on a record-breaking streak ever since. New Mexico is producing oil at record levels, and has seen a record number of drilling rigs operating within the state. Mostly concentrated in the Permian Basin that straddles Texas and New Mexico, drilling rigs are a leading indicator of future production activity and output. Late last year the United States Geological Survey reported that the Permian’s Delaware Basin holds 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids. That’s the largest pool of oil and gas reserves ever identified by USGS.
“The future is very bright for New Mexico, and we can expect these trends to hold for the foreseeable future if New Mexico remains a favorable place for oil and natural gas producers to do business,” added Flynn. “We have the ability to set New Mexico on an upward trajectory that will shape and benefit our state for generations to come. New Mexico has turned the corner. It’s time to keep the momentum going, take advantage of our incredible economic resources, and pave the way to move New Mexico forward.”
Read More About the New Mexico Oil and Gas Association Statewide and County Funding Report: https://www.nmoga.org/benefits_of_oil_natural_gas_2018
The oil and natural gas industry is New Mexico’s top economic driver, responsible for more than 100,000 New Mexico jobs and accounting for $2.2 Billion in tax revenue for schools, health care, and public safety. Based in Santa Fe, New Mexico, the New Mexico Oil and Gas Association (NMOGA) represents the hard-working men, women, and families of the oil and natural gas industry in New Mexico. NMOGA is dedicated to promoting safe and responsible energy policies, while strengthening New Mexico’s economy and ensuring a bright future for our state’s children.
The New Mexico Tax Research Institute is a nonprofit, nonpartisan, member-supported organization dedicated to providing fact based principled research and analysis to the tax policy debate in New Mexico.