Oil and Gas Drives Billions in Extra Funds for New Mexico in the Next Year
Billions of dollars in “new money” to the state of New Mexico was expected in the next fiscal year. It is due to the increase in oil and gas production in the southeast corner of the state. Moreover the oil-rich Permian Basin.
The latest report from the Legislative Finance Committee (LFC) showed about $3.6 billion in new revenue for the Fiscal Year 2024. It is running from July 1, 2023, to June 30, 2023. It shows a 42.7 percent growth from the FY 2023 budget.
That followed a steady growth in total revenue to the state. It is from about $9.7 billion in FY 2022 to $10.8 billion in FY 2023 and about $12 billion in FY 2024. This is according to the LFC’s December forecast.
Growth was fueled by oil and gas, analysts explained, as New Mexico maintained its position. They have the position as the second-largest producer of crude oil after Texas. Currently they are in the top 10 states for natural gas.
New Mexico shares the Permian Basin – which accounts for almost half of total U.S. oil production. They share it with Texas. The demand for domestic oil soared this year as the nation and world recovered from the COVID-19 pandemic.
Russia is not on the list of international markets following its invasion of Ukraine.
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Source: Carlsbad Current-Argus
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