Published: 2:14 pm, Wed. Jan. 3rd, 2018Updated: 2:12 pm
Newly released data from the United States Energy Information Administration shows oil production in New Mexico booming, propelling the state to the position of third-largest oil producer in the United States in September and October.
New Mexico passed Alaska and California, and trailed only Texas and North Dakota on the list. EIA data also shows New Mexico hitting a record high in monthly oil production, producing 16,367,000 barrels of oil while on pace to set an annual oil production record in 2017.
“Strong oil and gas production equals a strong New Mexico, providing more critical funding for our schools and state budget, and creating more jobs to grow our economy,” said Ryan Flynn, executive director of the New Mexico Oil and Gas Association. “We are turning an economic corner because of a surge of activity and investment in the Permian Basin and New Mexico’s attractive and balanced business environment.
“All New Mexicans benefit from a strengthened economy anchored by oil and natural gas, and can expect these trends to hold up for the foreseeable future as market prices continue to steady and if New Mexico remains a favorable place for oil and gas producers to do business.”
Last month, state economists told lawmakers and the Legislative Finance Committee the state was on track to see $199 million in “new” money available for the upcoming fiscal year, with The Albuquerque Journal reporting “a steady uptick in New Mexico oil production and income tax collections have been the driving forces behind the state’s improving revenue picture.”
Earlier this year, the federal Bureau of Economic Analysis ranked New Mexico’s GDP among the fastest-growing in the nation for the first and second quarters of 2017 and cited New Mexico’s improving oil and gas sector as a key factor.
Data and rankings are compiled and produced by the United States Energy Information Administration, an independent statistics and analysis agency within the United States Department of Energy.
Rounding out the top 10 in oil production were Oklahoma at No. 6, followed by Colorado, Wyoming, Louisiana and Kansas.
New Mexico’s 16,367,000 barrels in October were by far the most the state has produced in decades. After a sharp drop to 4,586,000 in February 2011, production began climbing and had soon well surpassed the 6,858,000 and 6,840,000 barrels that had been the state’s previous high points in December 1984 and January 1998 respectively.