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Industry Benefits

Industry Benefits

Oil & Natural Gas are the lifeblood of the world. Don’t anyone ever tell you differently. To quote Alex Epstein, author of The Moral Case for Fossil Fuels, “Fossil fuels are making the world a better and better place by providing uniquely low-cost, reliable energy to billions of people–and are needed by billions more.” In New Mexico, the Oil & Gas industry is the top sector for state, contributing over $5.3 billion dollars to state and local economies. The New Mexico state budget, alone, received $2.96 billion dollars in direct revenue from the oil and gas industry in our state. That makes up 35% of the entire state budget, which is money that directly goes to funding teachers, first responders, and infrastructure that delivers everything from food, fresh water, and home heating in New Mexico.  Thus, Oil & Gas is the primary supplier and distributor of the three essentials of life: food, water, & shelter.

New Mexico Benefits

Facts

  • Oil & Gas is a $27 billion industry in New Mexico. The extractive industries in New Mexico are the largest contributors to growth of the GDP in New Mexico.
  • Oil & Gas industry supports over one-third (35%), or nearly $3 billion of the state’s annual $8.9 billion budget.
  • More than 134,000 New Mexicans are employed as a result of oil and natural gas production, which is over 15% of the total state population.
  • Oil and gas funds the construction of new roads and highways in New Mexico through direct excise taxes, on top of the general fund budgets appropriated to state and local communities.
  • The Oil & Gas industry funds public safety, which helps New Mexico put more police, firefighters, and first-responders on the streets, keeping our communities safe.
  • New Mexico’s schools receive more than $1.4 billion each year to support students. That funding, alone, pays the salaries of one-third of our teachers.

Global Benefits

The Link Between Fossil Fuels & The Human Condition

Climate Deaths Decrease & Fossil Fuel Development

All graphics, information & references courtesy Alex Epstein:  https://energytalkingpoints.com/thanksgiving-2021/

Quick Links

Direct New Mexico

Benefits of Oil & Gas

Industry Benefits

In the News

Reference

Links

Industry Benefits In the News

Santa Fe New Mexican (June 9, 2023) - Thanks in large part to a booming oil and gas industry, New
American Oil & Gas Reporter (May 24, 2023) -- IPANM Executive Director Jim Winchester and Board President Alex Campbell of
Reuters (May 18, 2023) - New Mexico's crude oil production grew more last year than any other U.S. state, including
Santa Fe New Mexican (March 26, 2023) - Clips from the attached article.  Click below to read full story. This
IPANM (March 23, 2023) - IPANM has joined 24 other oil & gas industry associations in a letter sent to

Santa Fe New Mexican (June 9, 2023) – Thanks in large part to a booming oil and gas industry, New Mexico’s unprecedented revenue windfall is exceeding expectations by more than a half-billion dollars.

Revenues for fiscal year 2023, which ends June 30, are tracking about $581 million above December estimates, according to a presentation to lawmakers Thursday.

“Interestingly enough, a recent survey from the Tax Policy Center came out and showed that New Mexico was estimating the largest revenue growth in the country at about 15%, and the next-largest estimate was half of that,” Ismael Torres, the Legislative Finance Committee’s chief economist, told legislators on the interim Revenue Stabilization and Tax Policy Committee.

State Revenues Tracking Higher

 

American Oil & Gas Reporter (May 24, 2023) — IPANM Executive Director Jim Winchester and Board President Alex Campbell of Enduring Resources recently sat down with American Oil & Gas Reporter to discuss the industry in New Mexico.  Both discussed New Mexico’s regulatory climate, 2023 New Mexico Legislative Session, and IPANM’s upcoming Annual Meeting.

The 2023 Session demonstrated that moderate Democrats know oil and gas fuel the state’s economy and way of life.  Despite pressure from an increasingly progressive state legislature, moderate, fiscally conservative Democrats were unwilling to hurt an industry that provides about 40% of a state budget that in 2023 enjoys a $3.6 billion surplus. “They finally are recognizing our industry’s dramatic impact on the people of New Mexico,” Campbell says. “It benefits the citizens of New Mexico every day.”

As IPANM prepares for its 2023 Annual Meeting, scheduled for July 19-20 in Albuquerque, Executive Director Jim Winchester says the group finds itself immersed in regulatory and permitting matters. “IPANM is as focused as ever on those issues, because both state and federal authorities are throwing curveballs,” he reports. “We are working with regulators, trying to make the process more consistent and efficient.”

To read the full feature article, click below:

American Oil & Gas Reporter Profiles IPANM

 

Reuters (May 18, 2023) – New Mexico’s crude oil production grew more last year than any other U.S. state, including top producer Texas, and accounted for half the nation’s overall gain, signaling its importance in expanding U.S. oil output.  The state’s production rose by a record 300,000 barrels per day (bpd) in 2022, to 1.6 million bpd, the U.S. Energy Information Administration said on Thursday. It was the third consecutive year that New Mexico’s increase outpaced other states.  Overall U.S. crude oil production grew by 600,000 bpd in 2022, averaging 11.9 million bpd, the EIA said.  “New Mexico is like the new frontier, and there’s a lot of upside potential,” said Phil Flynn, an energy analyst at Price Futures Group. “Some people argue that some of (Texas’s) best wells have been drilled.”  Texas is still the largest oil-producing state with output totaling nearly 5.3 million bpd in February, far ahead of New Mexico’s 1.8 million bpd, the most recent EIA data showed.

Various News Articles Appeared on May 18 & 19, 2023:

Reuters:  New Mexico Oil Output Delivered Half of U.S. Growth in 2022

Oil Price: NM Accounted for 50% of U.S. Oil Production Growth in 2022

New Mexico accounted for 50% of U.S. oil production growth in 2022

Energy Information Administration’s Summary of New Mexico Production – 2022

 

Santa Fe New Mexican (March 26, 2023) – Clips from the attached article.  Click below to read full story.

  • This year’s legislative session showed that a blue majority isn’t always green.
  • The oil and gas bills that fell through underscore how the strong Democratic majority in the Legislature is not monolithic but has a fairly wide and diverse spectrum — from green-minded progressives to more conservative leaders who are wary of imposing too much regulation on an economic mainstay, Long said.

    “New Mexico has always had … a pretty big tent in that majority party,” he said. “There’s a variety of views. And we definitely saw that in play this session.”

    Jim Winchester, executive director of Independent Petroleum Association of New Mexico, applauded the failure of what he called legislation that disproportionately targets smaller oil producers in the state.

    “We are grateful to the legislators who rejected these radical bill proposals and understand the benefits of our industry to education, public safety, and the human condition in New Mexico,” Winchester wrote in an email.

  • Winchester, the industry advocate, rejected the characterization of oil operators being anti-environment.

    “IPANM supports environmental stewardship from our industry when proposed in balanced, reasonable, and practical legislation,” Winchester wrote. “However, there are groups who continue to push anti-oil-and-gas legislation without any thought to the consequences on everyday, hardworking people in our state.”

  • In an email, a political analyst wrote some Democratic lawmakers’ reluctance to push through climate bills this session is in line with what can be seen at the federal level: President Joe Biden drawing fire from progressive Democrats for not moving more aggressively toward the clean-energy transition.

    “This to me is reflective of the political challenges in energy production policy,” wrote Gabriel Sanchez, a political science professor at the University of New Mexico. “The oil and gas industry is a very powerful industry, especially in New Mexico. And given how important oil and gas revenue has remained to our state’s economy, this makes more aggressive climate change policy a challenge for progressive Democrats.”

State Legislators Push Back on Radical Green Agenda

 

 

IPANM (March 23, 2023) – IPANM has joined 24 other oil & gas industry associations in a letter sent to the leadership of the U.S. House of Representatives on HR1 Lower Energy Costs Act.

In the letter, the associations write, “The bill [H.R. 1] is a welcome answer to government-imposed distortions to energy markets that have decimated the energy independence that America enjoyed just a few short years ago. Make no mistake, we wholeheartedly believe in producing energy in an environmentally responsible manner that protects the nation’s air,
water, land, wildlife, and cultural resources while providing billions in taxes and royalties that sustain
communities and vital public services at every level of government.

HR 1 will likely get a House floor hearing during the week of March 27th in Washington, D.C.  IPANM strongly encourages New Mexico’s Congressional Delegation to support HR 1.

Associations’ Letter Regarding HR 1