By Adrian Hedden, Carlsbad Current Argus
October 21, 2020
Economic analysts warned that New Mexico could be unable to rely on its oil and gas industry as the market continues to struggle amid the COVID-19 pandemic.
Lease fees, royalty payment and taxes from oil and gas operations accounted for about 30 percent of the state’s budget in recent years, per a recent study from the Institute for Energy Economics (IEEFA) and Financial Analysis.
The industry also provided about a quarter of the state’s operations budget last year, the study read.
But with the price per barrel of oil declining — before the pandemic a 22014 boom busted about a year later — the financial support the industry offers New Mexico could be weakening, the study read.
Earlier this year, lawmakers faced a $400 million shortfall in the state’s budget which many attributed to declines in the oil and gas markets.
Read more at the Carlsbad Current Argus