What do you need to stay alive in this world? Oxygen, water, food, shelter, and clothing have long been considered the top five essentials for survival. However, this list has been inaccurate for decades. When man chose to weave petroleum energy into the fabric of his existence, oil entered the top five, and higher than you might think. The only thing more important than oil to your survival is oxygen.

    New Mexico is fortunate to be a major player in the nation’s energy market. Our state is the fourth largest natural gas producer in the continental U.S. and possesses the third most proven reserves. (New Mexico, Oklahoma, and Wyoming often move up or down in the production rankings between second, third, and fourth from year to year since their production capacity is nearly equal. Texas always leads, producing as much natural gas as the three other states combined.)
    The Land of Enchantment is ranked fifth in oil production and fourth in oil reserves. Production is concentrated in two areas—the San Juan Basin in the northwest region of the state and the Permian Basin in the southeast.

    In New Mexico, oil and natural gas are critically important because they are the biggest drivers of the state’s economy. Take away petroleum production and the Land of Enchantment would suffer profound economic hardship. In 2004, the oil and natural gas industry generated $1.3 billion in direct revenue to the state, as well as nearly $325 million to the federal government. That $1.3 billion is a big number, especially when you consider the state’s entire general fund is about $4.5 billion. Put another way, the oil and natural gas industry deposits $3.7 million into the state’s bank account every day of the year. That’s in addition to the nearly $900,000 the industry deposits into the federal treasury day in and day out.

    New Mexico’s school children are beneficiaries of the oil and natural gas industry, and they will be for generations to come. Since the 1920s New Mexico has been depositing money from oil and natural gas production into the Land Grant Permanent Fund. That fund, which is valued at $8.2 billion (2005), continues to grow while also greatly supporting today’s educational system as well as public facilities and government projects. The payout from the Permanent Fund in FY 2004 was $352 million.

    While oil and natural gas producers drill for the lifeblood of our economy, educational system, and modern way of life, they do so with great care taken to protect and preserve the environment. Today’s wells are drilled with far less impact to the land’s surface than the wells of a generation ago. Technological advances have made oil production cleaner, safer, and more efficient. When a well has given up all the vital energy it can produce, the equipment is removed, and the land is reclaimed. Within a few years the terrain returns to its natural state with no indication (aside from a dry hole marker) that a well had ever been there. Producers follow strict federal and state regulations that ensure the proper use and protection of the land. More than this, those who make a living by providing you with oil and natural gas have an even greater motivation to use the land responsibly—it’s their home.

    In spite of the incalculable benefits to using oil and natural gas as energy sources, there are those who feel compelled to attack the industry that gives everyone—including them—such a high quality of life. This is one of the great challenges faced by petroleum companies and those they serve (i.e. all of us). Every day distortions, mischaracterizations, and even outright lies about the industry and its impact on the environment are forced on an unsuspecting public. Historically producers have simply ignored these attacks. However, in recent years industry leaders have realized that this harassment must be countered with a determined effort to debunk the misconceptions while educating the public about the many positive contributions oil and natural gas make to their everyday lives. Our Oil and Gas Facts booklet is part of that effort.