Published: 3:06 pm, Tue. Mar. 13th, 2018Updated: 3:05 pm
Driven by the burgeoning Permian Basin, the United States Energy Information Administration (EIA) reports New Mexico oil producers pumped a record 172 million barrels of oil during 2017, topping the previous record of 147 million barrels set in 2015 and doubling New Mexico’s oil output since 2011. New Mexico oil producers also closed the year on a strong note, producing 17.2 million barrels in December, maintaining New Mexico’s position as the third-largest oil-producing state and setting the stage for strong, continued growth in 2018.
“Growing New Mexico’s oil and natural gas industry means growth in jobs, the economy, and funding for our public schools and state budget,” said Ryan Flynn, executive director of the New Mexico Oil and Gas Association. “2017 was a record-breaking year because of the prolific growth and potential producers are seeing in the Permian Basin. Last year, oil and natural gas producers invested more than $13 billion in New Mexico, and these investments are clearly beginning to have positive impact on the state’s economy. New Mexico is rich with natural resources, and safely developing our oil and natural gas economy is key to New Mexico’s future.”
As New Mexico oil production climbs, a new report by the International Energy Agency (IEA) says the Permian Basin shows no signs of stopping and that daily oil output in the basin will double by 2023. The report further states that the Permian Basin will ‘dominate’ growth in United States oil production for the near future, with Permian producers currently responsible for ‘two out of three rigs added over the past 18 months’ in America.
The news comes as New Mexico’s state finances begin to rebound on the strength of oil and natural gas production. State economists told lawmakers during the recently-concluded legislative session that the state was on track to surpass current annual spending with $292 million in “new” money, mostly driven by gains in market prices for oil and prolific production in the Permian Basin.
The nonpartisan New Mexico Tax Research Institute reported that New Mexico’s general fund and public schools already benefitted from sizable oil and natural gas taxes and revenue contributions in the previous fiscal year which totaled $1.742 billion, including $711 million in funding for public schools and nearly $223 million for the state’s universities, colleges, and other higher education institutions.
“Regardless of where New Mexicans live or make their home, our oil and gas industry is providing support for every public school and local community,” added Flynn. “This industry is the foundation of our state’s economy and is poised to grow jobs and revenue for our children, if New Mexico remains a favorable place for oil and gas producers to do business.”
Data and rankings are compiled and produced by the United States Energy Information Administration, an independent agency within the United States Department of Energy.