New Mexico Achieves Highest Share of Oil & Gas Revenue
New Mexico Achieves Highest Share of Oil & Gas Revenue
The New Mexico Tax & Research Institute and Moss Adams recently published a report that compared oil and gas revenues in nine Western states. New Mexico attained the top spot for the largest share of oil and gas revenue captured, living up to its nickname “the Land of Enchantment.”Comparison StatesNew Mexico earned 20.7% of all revenue generated by state and local oil and gas production. The other eight states in the study included Colorado, Kansas, Montana, North Dakota, Oklahoma, Texas, Utah, and Wyoming. The second runner up is none other than the “Lone Star State”, Texas, which captured 14.9% of revenue. New Mexico uniquely benefits from significant production on state and federal lands, which provide higher revenue through royalties and taxes.Investing revenue for the public benefitIn 2017, New Mexico received over $3 billion in oil and gas production revenue which directly accounted for the state’s surplus of over $1 billion. The generated revenues are then invested into a trust that feeds into New Mexico’s general fund. The general fund is ultimately responsible for financing the state’s education and public safety programs for current and future generations.What’s next?New Mexico ranks third in the United States for oil production. The state’s decision to invest revenues into its general fund helps ensure future financial stability for New Mexico. Additionally, aside from the general fund, state legislators are working behind the scenes to further increase state revenue. The State Land Office lawmakers proposed a 5 percent increase to royalty rates for state oil production translating from a 20% to a 25% royalty rate, matching Texas’s royalty rates. The study highlighted that the New Mexico economy is dependent on oil and gas production, but state legislation has implemented a strong foundation to ensure revenues for the future, even with economic uncertainty.
Share
Chase Energy Services
Chase Energy Services is one of the largest privately held integrated oilfield services company in the US, providing end-to-end oilfield services through an experienced management team, innovative technologies and an unrelenting focus on safety. With more than 500 employees, the company serves customers across Southeast New Mexico and West Texas in frac and acidizing, well construction and completion, cementing solutions and well servicing. learn more
Chase Energy Services, Inc.11344 Lovington HWYArtesia, NM 88210(575) 748-1288
