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New Mexico oil, gas, 100 years after the big strike

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New Mexico oil, gas, 100 years after the big strike


By any standard, in the past decade oil production in New Mexico has attained world-class stature. In 2023, New Mexico produced about 1.8 million barrels per day (657 million barrels that year) of crude oil, 10 times more than 2010, thanks to investments in new fracking technologies. This quantity places New Mexico just about even with the oil-rich countries of Mexico, Kazakhstan and Norway, and slightly above Nigeria and Qatar. If New Mexico were a nation, it would rank 14th in the world in oil production, well above the OPEC countries of Libya, Algeria and Venezuela.

Visionary as they might have been, it seems unlikely Mary and Martin Yates, thrilled by the gushing black liquid at the Illinois #3 well in the spring of 1924, could have imagined exactly one century later their descendants would still be drilling in a New Mexico producing more oil than Qatar.

The New Mexico gross domestic product in 2023 totaled about $130 billion. About one-fifth — $26.1 billion — was generated by oil and gas. According to the New Mexico Tax Research Institute (NMTRI), total state and local government spending in 2023, including federal transfers, added up to $26.2 billion, out of which slightly more than half ($13.9 billion) came from direct and indirect taxes from the oil and gas industry.

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Most taxes collected on oil and gas are placed into the General Fund, which also includes revenues from income, corporate and other taxes and fees. The General Fund funds the annual state government budget: schools and colleges, health care, public safety, etc. Other chunks of oil and gas taxes are placed into various funds to pay for roads; for local operating, and state and local capital expenses; to bolster state reserves; and to add to various permanent funds designed to accumulate state monies against the day when extractive industries have been depleted as significant sources for state revenues.

In 2023, the general fund contained $14.98 billion when the legislature convened. Fully half of this amount, $7.5 billion, was collected from oil and gas, according to NMTRI. The other funds received $6.4 billion in oil and gas taxes and fees. Those same taxes paid for nearly 58 percent of 2023 expenses for public and higher education. Twenty-seven percent of all state expenses for health and human services came out of oil and gas, and six percent of public safety expenses. Truly, in recent years, state government spending has dramatically increased its reliance on revenues from oil and gas. By contrast, between 1998 and 2008 energy-related revenues averaged only about 16 percent of the General Fund. From 2011 to 2021 they averaged about 33 percent. In 16 years, the proportion of the state budget reliant on oil and gas has more than tripled.

The oil boom will not last forever. Given that the state is hardly a paragon of excellent government management, there is an urgency to use these generous petrodollars to fix what needs fixing.

Most New Mexicans outside of the Oil Patch — San Juan County is included because of its huge production of natural gas and oil — appear not to have absorbed the full magnitude of the oil and gas bonanza. Most are vaguely aware of oil activity in the east side, but few have any idea of the massive scales or spreading impacts from this surging tide of cash. Consequently, citizens have largely left the management of these riches to the state Legislature and executive branch, with little discussion, much less public pressure about how to spend it. Likewise, the governor’s office and legislative leaders have made few serious remarks about what they might do with the most massive influx of tax dollars in state history. But if they hadn’t thought this through, they have not neglected to spend the money.

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If NMTRI is correct, the $13.9 billion collected in taxes last year from oil and gas, if divided equally to every living person in the state, would amount to about $6,575 per person. The share for a family of four would be $26,300. A fair question is, does that family of four get that much value each year from the extra cash state government spends? Experience over the past century shows countries that rely heavily on oil revenues to fund government are highly prone to public corruption: look up corruption scores for Russia, Libya, Nigeria, Mexico, Venezuela, Iraq and Iran. They are also highly prone to neglecting investment in solid infrastructures for economic development when oil revenues have depleted.

The time is ripe for all of us to ask these questions of our governor and our legislators. Mary and Martin Yates, Tom Flynn, and Van S. Welch, if they were here, would surely join the crowd in asking.

Jose Z. Garcia taught politics at NMSU for more than three decades and served as Secretary of the NM Higher Education Department for four years.



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New Mexico

New Mexico Legislative Finance Committee releases $10.8B budget recommendation • Source New Mexico

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New Mexico Legislative Finance Committee releases .8B budget recommendation • Source New Mexico


New Mexico’s Legislative Finance Committee on Wednesday recommended $10.8 billion in spending for the 2025-2026 fiscal year from the state’s general fund, a 5.7% increase over 2025 planned spending.

In a statement, Sen. George Muñoz (D-Gallup), LFC chairman and chair of the Senate Finance Committee, said “fiscal restraint has been critical to our successful efforts to transform the revenue boom of the last few years into long-term support for state services.” He continued to say the lawmaker’s intended budget recommendation balances increasing New Mexican’s income, health care and quality of life while saving for the future.

Democratic lawmakers held a news conference Wednesday to present their recommendations, which include $3 billion in one-time spending: $50 million for regional recreation centers and quality of life grants; $350 million for transportation projects; $855 million for special projects and $1.7 billion in transfers to endowments and other funds.

The budget also allocates 45% of the $577 million increase in recurring general fund spending to public education, primarily toward the formula-based state equalization guarantee distribution to school districts and charter schools.

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Other budget highlights include:

• a 3% increase, or $36 million to the Higher Education Department

• approximately $79 million more to the Health Care Authority, primarily for Medicaid

• an average 4% increase for higher education and state employee salaries— $134 million.

“New Mexico is in the best financial situation it’s ever been in its history,” Muñoz told reporters Wednesday. “If we do maintain responsible policies in New Mexico, we’ll continue on this path to growth for the next 10 years.”

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Gov. Michelle Lujan Grisham’s budget recommendations, which she released in December, call for $10.9 billion in recurring spending overall, including $172 million for state employee and educator raises.

Senate Majority Leader Peter Wirth (D-Santa Fe) said the Legislature’s budget proposal is “not that far apart” from the governor’s proposed budget, “and that’s a really good thing going into a session.”

The committee’s plan allocates 33% of planned spending for reserves; the governor’s recommends maintaining reserves at 30.4%.

In a statement, Department of Finance and Administration Cabinet Secretary Wayne Propst said the agency released the executive budget recommendation “earlier than ever to give both the public and the Legislature ample time to review and understand our plan before the LFC presented theirs.”

“We appreciate the effort that went into the LFC recommendation and agree that both recommendations align on key priorities and are very close to each other.  Where differences exist, we look forward to working through them with the appropriating committees,” Propst said. “We’ve been proactive in building strong reserves and setting aside billions for the future. These next 60 days will test our collective resolve to resist unnecessary spending and stay focused on building a strong and stable financial future for New Mexico.”

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Senate President Pro Tem Sen. Mimi Stewart (D-Albuquerque) also noted the budget includes a community benefit fund for electrification, transportation and clean jobs infrastructure designed to help local communities lower greenhouse gas emissions, and have healthier air, land and water.

Overall, House Appropriations and Finance Committee Chair Rep. Nathan Small (D-Las Cruces) said the budget focuses on making New Mexicans’ lives better immediately and in the next decade and beyond.

Wise spending in this budget will allow for sustained future raises for public servants like teachers, police officers, health care workers and others, Small said, “whereas in past cycles, it was a boom-and-bust approach.”

“We have an enviable opportunity in order to spend increased amounts today, while also saving for the future,” he said.

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New data tool allows journalists and the public to track ‘wandering cops’ in New Mexico • Source New Mexico

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New data tool allows journalists and the public to track ‘wandering cops’ in New Mexico • Source New Mexico


A new database launching today gives the public, journalists and policymakers greater insight into police officers in New Mexico who lose their jobs with one agency, sometimes for serious misconduct, and then find work at another.

The New Mexico Department of Public Safety in July 2024 launched its own disciplinary database lookup tool, but it only covers officers who have been sanctioned by the state.

The National Police Index complements that database, and provides more data.

A coalition of journalistic, legal and human rights organizations led by Chicago-based nonprofit Invisible Institute created the database, using officer employment history records from 26 states, including New Mexico.

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The NPI’s data on New Mexico cops go back as far as the 1960s, according to information released by Invisible Institute Director of Technology Maheen Khan.

The data include 5,185 currently active officers in New Mexico. Of those, 811 have had more than three employers, 150 have had more than five employers and 252 were previously terminated, Khan said in a statement.

The number of previously terminated officers is only as accurate as local police departments reports turned into DPS, so it’s almost certainly an undercount, according to Khan.

The first systematic investigation of “wandering officers” was published in 2020. Since then, New Mexico lawmakers and law enforcement officials have twice called for DPS to “track” problem officers.

While the NPI does not contain reports of misconduct, it does track officers over their careers and shows the reported reasons for their separation from an agency.

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New Mexico’s database followed the creation of the New Mexico Law Enforcement Certification Board in 2023, which oversees the agency responsible for investigating police misconduct, called the Law Enforcement Certification Office.

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The LECB replaced an agency heavily criticized for allowing officers to jump around to different jobs with little transparency.

New Mexico’s decertification process relies on local agencies fully and adequately investigating and reporting misconduct up to the LECB.

But journalists from around the state have shown this is often not the case, and a court ruling three years ago blocked public and press access to even more misconduct records.

If a case reaches the LECB, then its members can control whether an officer can hop to another department, said Bobbie Green, the longest-serving citizen-at-large on the board.

Green, who is also president of the Doña Ana County NAACP and second vice president of the New Mexico NAACP, said as a person of color, she tries to limit her interactions with police.

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“Most of my family members — most Black people that I know — we are afraid of interactions with the police for obvious reasons. So from that perspective, I’m happy that there is going to be such a database,” she said.

However, Green said it’s difficult because while the public is at risk, officers also have rights, as well. The LECB must follow the rules and regulations, or risk being taken to court. They can’t act on a case that doesn’t get in front of them, she said.

“If the case never reaches us, that is, in my opinion, the loophole,” she said. “If they retire or leave before we get the case, then there’s nothing we can do about officers hopping from one place to another.”

Joshua Calder, the LECB’s first-ever CEO, said in an interview that officers who resign in lieu of termination could be trying to escape accountability; however, state regulation is clear that’s not a way to circumvent the misconduct reporting process. Since Source’s interview with Calder for this story, an email documenting his concerns about the LECB’s independence became public.

“I know that in reality, that may not be the case, and certain administrators may be leveraging — ‘Hey, we won’t file,’ or something — but they’re still required to provide that information to us if it violates New Mexico administrative code or statute,” Calder said.

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Daniel Williams, a policing policy advocate at the American Civil Liberties Union of New Mexico, which helped craft the legislation that led to the LECB’s creation, said in an interview the ACLU advocated for a much more expansive state database when the legislation was up for debate.

“Having this database is better than nothing by a long shot,” Williams said. “This is one of the conversations we look forward to continuing to have with lawmakers about the need for transparency, in terms of law enforcement misconduct.”

All New Mexicans want to live in safe communities, and most see police as part of that, Williams said.

“They want to be able to trust in the cops who are going to pull them over when they’ve done something wrong, or going to come help them when something has been done to them,” he said. “Transparency is an essential part of that. We think everyone, including law enforcement, acknowledges that that trust has really broken down over the years.”

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Vaihola, Davis lead San Jose State over New Mexico, 71-70

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Vaihola, Davis lead San Jose State over New Mexico, 71-70


Associated Press

SAN JOSE, Calif. (AP) — Robert Vaihola led San Jose State with 18 points and Latrell Davis hit the game-winning jump shot with 2.1 seconds remaining as the Spartans knocked off New Mexico 71-70 on Tuesday night.

Davis grabbed an offensive rebound and banked in the fade-away putback to cap the scoring.

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Vaihola also had nine rebounds for the Spartans (9-10, 2-5 Mountain West Conference). Jermaine Washington scored 13 points while shooting 5 for 10, including 3 for 7 from beyond the arc. Josh Uduje shot 5 for 13, including 1 for 3 from beyond the arc to finish with 12 points, while adding eight rebounds.

Nelly Junior Joseph led the Lobos (14-4, 6-1) in scoring, finishing with 20 points and six rebounds. New Mexico also got 17 points and five assists from Donovan Dent. Mustapha Amzil also had nine points. The Lobos broke a seven-game win streak with the loss.

Davis scored eight points in the first half and San Jose State went into the break trailing 35-31. Vaihola scored 12 second-half points. San Jose State outscored New Mexico by five points over the final half.

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.

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