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A new report from the New Mexico Tax Research Institute (NMTRI) shows the state’s oil and natural gas industry provided $5.3 billion in state and local tax revenue for fiscal year 2021 – the highest figure in New Mexico history, the New Mexico Oil and Gas Association (NMOGA) said in a Dec. 1 news release.
Through its contributions to the state’s general fund, the oil and gas industry provided almost $176.1 million in funding for Doña Ana County’s three school districts, New Mexico State University and Doña Ana Community College in FY 2021, NMOGA said in its 2021 report, “Fueling New Mexico: How New Mexico’s Oil and Natural Gas Industry Benefits All.”
That includes $114.6 million in K-12 funding – 77 schools in Las Cruces Public Schools, the Gadsden Independent School District and Hatch Valley Public Schools; and $61.6 million for NMSU and DACC.
NMOGA said that translates to 6,374 jobs supported and almost $300 million in labor income.
Public schools continue to be the largest beneficiary of oil and natural gas revenue, NMOGA said, with $1.04 billion going to public education and $275 million going to New Mexico universities, colleges and other institutions of higher education.
State revenue jumped more than $500 million from FY 2020 on production growth and
improving market conditions, as New Mexico also became the second-largest oil producer in the
United States, NMOGA said.
“Historic revenue equals historic opportunity, and that is great news for teachers and students,
critical first responders and health care workers, and each and every New Mexican across this
state,” said NMOGA President and CEO Leland Gould.
The $5.3 billion in 2021 revenue surpassed the previous industry record of $5.16 billion set in
Higher-than-average production coupled with improving market conditions were the primary drivers of
revenue growth, NMOGA said.
“2021 saw a remarkable recovery in New Mexico’s oil and natural gas industry as producers
maintained record production levels and gradually restored drilling over the course of the year,”
said NMTRI President Richard Anklam. “While some revenue streams initially dipped on curtailed drilling activity, the rebound in market prices and consistently high output lifted direct taxes on production by 40 percent.”
Oil and gas revenue accounts for 35 percent of the state general fund, supporting education, public safety, economic development, health care and other areas of state spending, NMOGA said.
The oil and natural gas industry is the state’s largest economic and fiscal contributor, supporting more than 134,000 jobs and $27 billion in annual economic activity, NMOGA said.
See the complete “Fueling New Mexico” report at www.nmoga.org/fuelingnewmexico2021.
NMOGA is a coalition of more than 1,000 oil and natural gas companies and individuals operating in New Mexico. It is the oldest and largest organization representing the state oil and gas industry and includes all facets of oil and natural gas production, transportation and delivery.
Visit NMOGA.org to learn more.