New Mexico
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.
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.
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.
Acres: 7,769 acres
Start Date: June 9, 2026
Location: 18 miles southeast of Quemado, NM
Personnel: 169
Containment: 100%
Cause: Lightning
Summary: Containment lines are holding, and much of the repair work is completed on the Bear Fire. The Gila Las Cruces Type 3 Incident Management Team will transfer command of the fire back to the Gila National Forest and a Type 4 Incident Commander on Wednesday morning. Firefighters will continue to patrol and secure the perimeter while repair is completed.
Remarking on the success of firefighters on the Bear Fire, Incident Commander Marcus Cornwell said, “The support from the State of New Mexico Forestry Division, local landowners, and the Village of Quemado were instrumental in helping suppress the fire. Providing firefighters access to private land and use of Quemado High School proved pivotal.”
This will be the last daily update provided by the Gila Las Cruces Type 3 Incident Management Team. Any future updates for the Bear Fire will come from the Gila National Forest.
Weather: Today’s high temperature will be in the mid 80s. Moisture moving in from the south will improve relative humidity and drop temperatures slightly. The forecast shows daily chances of thunderstorms through Friday.
Safety: A Temporary Flight Restriction is in place through this evening. If you fly, we can’t! The Gila National Forest enacted an Area Closure Order for the Bear Fire.
Evacuations: Catron County Emergency Management lifted SET status for residences within zones 2, 3 and 4 on Thursday, June 18th. For more information about the change in evacuation status, visit Catron County Emergency Management.
Smoke: Smoke may be visible in and around surrounding communities. Air quality will vary based on fire activity, weather, and wind patterns. Residents should reduce prolonged outdoor activity when smoke is present and check the Air Quality Index before recreating or working outdoors. Sensitive groups should take extra precautions to limit smoke exposure. For real-time smoke conditions, visit https://fire.airnow.gov.
Fire Restrictions: The Gila National Forest is in Stage 1 Fire Restrictions due to long term severe drought in the Gila region, increased tree mortality across the forest, and forecasted hotter, drier weather conditions. Stage 1 Fire Restrictions limit campfires on forest land to designated recreation sites and campgrounds with constructed metal fire rings. Open burning is also prohibited in the unincorporated area of Catron County and in Catron County Fire District 30.
Public Information: 2026.bear@firenet.gov
Incident Information:
Facebook: www.facebook.com/GilaNForest
InciWeb: https://inciweb.wildfire.gov/nmgnf-bear-fire
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ALBUQUERQUE, N.M. – Southwest Albuquerque neighbors claim a woman targeted them for at least a year, throwing items into their yard, and leading one family to spend more than $1,000 on security.
Neighbors said they kept contacting Albuquerque police, the city and the state after the most recent encounter left a father with a cut on his face. They said Sunday’s arrest helped some, but they still do not feel safe.
Richard and Lindsey Boldin said they have dealt with harassment from Andrea Padilla-Garcia for at least a year. They said she has thrown broken glass, frozen food, a MacBook, metal poles and wood over their fence and dumped nail polish on it.
They said the incident with the glass resulted in a cut to Richard’s face.
“She can’t come back to where she lives. I won’t feel safe. There’s no way,” Lindsey Boldin said.
The Boldins said they spent more than a thousand dollars on security cameras, motion-sensor lights and other steps to protect their property. They also blocked the view into their yard, but said they still do not feel safe.
“It hurts the whole family. We’ve got to watch animals going outside. We have to watch when we go outside. You know, when can we go outside?” Richard Boldin said. “She kept coming to the fence and attacking the fence and shaking it and yelling at the fence at the children, you know, giving them inappropriate, you know, telling them inappropriate things.”
Neighbor Lawrence Lovato said he has lived in the neighborhood for about a year and what he has seen stands out from anything he has experienced before. He said he has called police multiple times.
“Never in my life have I have I seen something as horrible that I’ve seen here,” Lawrence Lovato said.
Lovato said he worries about his own safety and his daughter’s safety. Neighbors said they plan to keep looking out for one another and hope the latest arrest leads to help for Padilla-Garcia. She remains in jail and faced charges of battery and aggravated assault.
ALBUQUERQUE, N.M. – Americans now say they need $1.46 million to retire comfortably, up $200,000 from last year, according to a study discussed by Oakmont Advisory Group.
David Hicks of Oakmont Advisory Group said the number can feel overwhelming, but he said people should focus on starting and adjusting a plan instead of panicking.
“The average retiree actually has less than $300,000 saved for retirement, so that’s about a $1 million gap there,” Hicks said.
Hicks said the $1.46 million figure reflects what people think they need, but he said retirement planning depends on each person’s savings, income and timeline.
He said longer life spans now mean many people need to plan for 20, 25 or even 30 years in retirement.
“When you start saving when you’re younger, it makes a lot of difference in the future,” Hicks said.
Hicks said 57% of people do not start saving until after age 30, and he said about a third do not start until their 40s.
Hicks pointed to Fidelity benchmarks that suggest workers should aim to save one times their salary in their 30s, three times in their 40s, six times in their 50s and 10 times by retirement.
“Don’t wait another year. Don’t wait another month. Just start that process of saving,” Hicks said.
Hicks also said the study found people who work with a financial adviser improve their chances of retirement success by about 50% and report more confidence about their plans.
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