New Mexico was the top recipient of energy revenues from the U.S. Department of the Interior (DOI) for fiscal year 2018, according to a recent news report. Our state received $634.9 million, which will fund essential services for New Mexico such as schools, roads, health care, and public safety.
In all, the DOI disbursed nearly $9 billion in energy revenues to states, tribes, and other funds for fiscal year 2018 – a 25 percent increase over the previous fiscal year.
According to the news report, “Oil and gas leasing on federal lands in the New Mexico portion of the Permian Basin, the top oil producing region in the U.S., hit record levels of $972 million in September.”
More than half of New Mexico oil and natural gas production occurs on federal lands, making these energy revenues an important source of funding for the state.
The surge in revenue from production on federal lands also demonstrates how improved technologies are allowing for greater access, while minimizing surface impacts: of all the federal land in New Mexico, only 17% is leased for oil and gas production.
Even while important revenue is coming into our state, outside groups are still trying to block some of the development that is driving this surge in revenue. The news today underscores the economic harm that would come from preventing responsible energy development.
The tax revenue from energy development on public lands has provided New Mexico with the largest budget surplus in state history and a unique opportunity make the investments in schools, roads, and public safety that will put our state on the path to long-term prosperity.