October 25, 2020 Read More →

New Mexico budget plummets in wake of oil price collapse

Associated Press:

Economic analysts are warning 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% of the state’s budget in recent years, according to a study from the Institute for Energy Economics and Financial Analysis. The research also found that the industry provided about a quarter of the state’s operations budget last year.

But with the price per barrel of oil declining, the study suggests the financial support the industry offers New Mexico could be weakening.

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. 

[Associated Press]

More: Study: New Mexico’s oil and gas collapse could last years

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