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New Mexico Struggles To Balance Oil Output Boom with Climate Goals | OilPrice.com

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New Mexico Struggles To Balance Oil Output Boom with Climate Goals | OilPrice.com


The second-largest oil-producing U.S. state, New Mexico, has seen record oil and gas output and revenues in recent years on the back of the booming activity in the Permian, the top U.S. shale field.

New Mexico has driven the Permian’s oil production growth over the past two years. For example, two counties in the southeastern corner of the state, Lea and Eddy, accounted for 29% of all crude oil production in the Permian Basin in the first half of 2023, the EIA said last year, citing data from Enverus.

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As New Mexico’s oil and gas production surges, so is the revenue from the industry for the state coffers.  

New Mexico, however, needs to prepare for a decline in the state’s oil and gas production—and state revenues—expected to begin in the early 2030s, legislators and analysts say.

Additionally, the state needs to do a lot more to cut greenhouse gas emissions if it is going to meet its ambitious emission reduction and climate goals.

A 2023 analysis from the Environmental Defense Fund (EDF) showed that New Mexico is nowhere near reaching its 2025 and 2030 emission reduction goals. The state has committed to reducing GHG emissions by at least 45% by 2030, from 2005 levels, and has subsequently pledged to make at least a 26% reduction by 2025 and a 50% reduction by 2030.

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But as of September 2023, New Mexico was projected to reduce emissions by just 1% by 2025 and 13% by 2030 from 2005 levels, the EDF analysis found.

This suggests that the state is on track to reduce emissions by less than one-third of what is necessary to meet 2030 commitments made by Democratic Governor Michelle Lujan Grisham.

New Mexico will miss by a mile its emission reduction targets “unless the state leaders act quickly to adopt comprehensive policies that set an enforceable limit on climate pollution and allow New Mexico to take full advantage of federal climate and clean energy funding,” EDF said.

“Current policies are not reducing overall emissions in a persistent manner, leaving the state projected to emit 21% more climate pollution over the course of the decade than if it were steadily reducing emissions in line with the latest science.”

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But the oil and gas sector, responsible for a lot of these emissions, is creating a bonanza for New Mexico’s state revenues.

In 2023, the industry provided $13.9 billion in state and local revenues for New Mexico, with $7.5 billion going to the general fund and another $6.4 billion to the non-general fund, the New Mexico Oil and Gas Association (NMOGA) says.

New Mexico’s Legislative Finance Committee (LFC) reported last week a revenue of $15.2 billion from the extractive industry for the fiscal year 2023, as oil and gas revenue to the state has more than quadrupled over the past five years.  

New Mexico expects the coming years to continue bringing high revenues from oil and gas. The state has taken steps to ensure it has enough reserves in the General Fund in case of another oil industry bust, but needs to rely less on the sector for property tax income that goes to local governments, lawmakers and economists said last week.

“We have enough money in reserves, which is a great place to be, because oil and gas will always be a volatile industry,” legislative economist Jennifer Faubion said, as carried by the Albuquerque Journal.

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The record revenues from oil could start to decline by 2030, New Mexico said at the end of last year. The General Fund Consensus Revenue Estimate drawn by economists “highlights oil and gas strength as driving current revenues while later becoming a drag on revenue growth as global demand wanes.”

Highlighting New Mexico’s dilemma is also last week’s decision by a district court to allow a lawsuit to proceed against the state’s governor, legislature, and agencies for failing to uphold their state constitutional duty to protect against pollution from oil and gas drilling.  

By Tsvetana Paraskova for Oilprice.com

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NMDOT and Santa Ana Pueblo break ground on $2.4M intersection project

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NMDOT and Santa Ana Pueblo break ground on .4M intersection project


The project is aimed at making it easier for drivers to turn in and out of the pueblo.

SANTA ANA PUEBLO — Construction is set to start next month on a road project designed to help drivers turn in and out of the Santa Ana Pueblo.

The Santa Ana Pueblo and the New Mexico Department of Transportation broke ground yesterday at New Mexico State Road 313 and Dove Road.

The Santa Ana Pueblo governor said they’ve been working on plans for that intersection for a decade now. The whole project is expected to cost $2.4 million.

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Water managers push for funding to remove invasive plants from the bosque

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Water managers push for funding to remove invasive plants from the bosque


NEW MEXICO (KRQE) — It’s a major problem, sucking up lots of water from the Rio Grande. Now, some water managers are asking lawmakers to get serious about ripping invasive plants from the bosque by spending millions. An “out of control bosque” is how the head of the Middle Rio Grande Conservancy District (MRGCD) describes the areas around the river in central New Mexico, and he said it’s time for a generational project to take on the problem. 

Not everything green in the middle valley’s bosque is helping New Mexico’s water supply, with a newer study highlighting how the Rio Grande’s riparian species are taking just as much water as surrounding farms. In fact, they’re actually consuming a percentage point more than agriculture.

Jason Casuga, the MRGCD’s CEO and Chief Engineer, said conversations are not being had across the board regarding water conservation. “We’re not having a fair conversation about riparian depletions,” said Casuga.

He said he thinks both the bosque and farming are worth protecting. “If we’re going to have standards for depletions on urban areas, standards for depletions on reducing those across farming, then the only way to have a realistic discussion about reducing depletions, as a whole, is to include the riparian area.” 

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Casuga said that invasive Salt Cedar and Russian Olive plants drive the problem of the extreme riparian water depletion, and that it’s unfair to farmers and cities to ignore what he calls a “takeover.” And that is especially when irrigators are often the first to cut back on water use. “Are we really going to ask farmers and have cultural farms on the Rio Grande go away? And leave hundreds and hundreds of acres of invasive species of Salt Cedar and Russian Olive? Is that what we’re protecting?

He stressed that he thinks if there are standards for agriculturalists and municipal entities, then there ought to be standards for invasive species as well. That feeling has Casuga pushing for a massive, coordinated invasive plant removal effort. He’s calling on lawmakers to fund a multi-million dollar investment in the project next session.   

He said not everyone is quick to get on board with proposals like this. “Right now, everyone says, ‘Hey, it’s expensive, and it’s hard, and the easy thing to do is to target ag.’ But, I pose the question back, ‘If we love the Rio Grande in the Middle Valley, and we love the heritage of ag, is it a conversation worth having?’”

He said the millions would also ideally pay for bosque upkeep and native plant restoration. But one hurdle is finding qualified contractors to take on that difficult job

A Mississippi crew is now working to clear invasives near Belen. The MRGCD said while saving water, the job also cuts wildfire risk, and makes a big difference if firefighters do need to move in. 

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The MRGCD’s Bosque Management Coordinator said the next step in the Belen bosque restoration project is to plant more native grasses and bushes, which is expected to help wildlife. The methods used to eradicate the invasives protected the native plants that were already there.

“The more diverse food sources you have available for the wildlife, the different types of wildlife you have, and you’ve got a healthy food system that’s supporting multiple species throughout the year,” she said. “The species that come here in the summer to breed, and the species that come here in the winter will still have access to be able to find bugs under the ground, find any of the seeds from the species that have been seeding out, and still have access to water and then access to places where they can hide and they can have burrows and sustain themselves through multiple conditions.”

The MRGCD is celebrating its 100th anniversary this year. It was founded to create the infrastructure capable of transforming the Middle Rio Grande Valley—by building and connecting more than 1,200 miles of canals and hundreds of miles of levees—to support agriculture and enable the growth of Albuquerque and surrounding communities.

Casuga said that it was a difficult endeavor then. “Tremendous amount of effort and resources were put in for that day—to set the river for essentially a hundred years that we’ve enjoyed with some problems here or there,” said Casuga.

He took a moment to think. “This might be generational work that needs to be done that sets the stage for the next hundred years.”

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The MRGCD said Valencia and Sandoval counties need the most attention in removing invasive plants. While the District is still considering its exact proposal for a large removal effort, and doesn’t have a specific dollar figure on potential cost, it’s thinking of a project worth at least several million dollars.



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Debate rages on oilfield wastewater in New Mexico – Carlsbad Current-Argus

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Debate rages on oilfield wastewater in New Mexico – Carlsbad Current-Argus


Adrian HeddenCarlsbad Current-Argusachedden@currentargus.com Wastewater from oil and gas drilling could be reused by other industries next year, if a state body acts despite criticism from…



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