Feb 23, 2020
Feb 23, 2020
New Mexico Continues Record-Breaking Oil Production
New Mexico Continues Record-Breaking Oil Production
New Mexico produced an astounding 300 million barrels oil in 2019—a new record. This marks three years in a row of record-breaking oil production in the state and a 36% increase from 2018. Despite declining crude prices in 2020, New Mexico’s Permian Basin is still growing and showing extraordinary resilience. New data from the U.S. Energy Information Administration predicts that U.S. shale oil output will increase by 18,000 barrels per day (bpd) in March largely thanks to the Permian Basin in New Mexico. Executive Director of the New Mexico Oil and Gas Association Ryan Flynn believes “New Mexico has really flipped the boom-and-bust cycles that it experienced in the past from price fluctuations. We’re seeing a ‘new normal’ in the Permian Basin, with production remaining high even in a challenging price environment.” Oil & Gas Growth Helping the StateNew Mexico’s total revenue from oil and gas reached a record $3.1 billion in 2019, a 41% increase over 2018’s $2.2 billion. Currently, oil & natural gas makes up 39% of the state’s revenues which is used to fund public schools, infrastructure, and healthcare. In 2019, the oil and gas industry contributed a total of $1.6 billion to public education—a 28% increase from 2018. Thanks to these revenues, residents of New Mexico could soon be receiving free college tuition through a new scholarship. The future continues to look bright for New Mexico. Recent reports from the global consulting firm ICF predicts oil production in the state could increase by another 300% over the next decade, generating $8 billion in annual revenue for New Mexico by 2030.
New Mexico produced an astounding 300 million barrels oil in 2019—a new record. This marks three years in a row of record-breaking oil production in the state and a 36% increase from 2018. Despite declining crude prices in 2020, New Mexico’s Permian Basin is still growing and showing extraordinary resilience. New data from the U.S. Energy Information Administration predicts that U.S. shale oil output will increase by 18,000 barrels per day (bpd) in March largely thanks to the Permian Basin in New Mexico. Executive Director of the New Mexico Oil and Gas Association Ryan Flynn believes “New Mexico has really flipped the boom-and-bust cycles that it experienced in the past from price fluctuations. We’re seeing a ‘new normal’ in the Permian Basin, with production remaining high even in a challenging price environment.” Oil & Gas Growth Helping the StateNew Mexico’s total revenue from oil and gas reached a record $3.1 billion in 2019, a 41% increase over 2018’s $2.2 billion. Currently, oil & natural gas makes up 39% of the state’s revenues which is used to fund public schools, infrastructure, and healthcare. In 2019, the oil and gas industry contributed a total of $1.6 billion to public education—a 28% increase from 2018. Thanks to these revenues, residents of New Mexico could soon be receiving free college tuition through a new scholarship. The future continues to look bright for New Mexico. Recent reports from the global consulting firm ICF predicts oil production in the state could increase by another 300% over the next decade, generating $8 billion in annual revenue for New Mexico by 2030.