Report: Oil, gas tax revenue hits record $5.3 billion (NM - Radical enviro-nutter's in Santa Fe plotting to kill the golden goose)

The Albuquerque Journal ^ | December 1, 2021 | Dan McKay

[CedarDave]

SANTA FE – The oil and gas industry injected nearly $5.3 billion into the budgets of state and local governments in the past fiscal year – a record amount, according to a report released Wednesday by the New Mexico Tax Research Institute and New Mexico Oil and Gas Association.

The association celebrated the report and highlighted the industry’s critical contribution to government revenue.

The 30-page report estimates that oil- and gas-derived income made up 35% of all general-fund revenue for the state budget last year – a share exceeded only once in the most recent eight-year period.

In raw numbers, the industry generated almost $5.3 billion in revenue for state and local governments in the 2021 fiscal year – a 12% increase over 2020 and more than twice as much as in 2016, when revenue took a dive.

Leland Gould, president and CEO of the New Mexico Oil and Gas Association, said policymakers should take note of the industry’s vital role in funding government operations. “Historic revenue equals historic opportunity, and that is great news for teachers and students, critical first responders and health care workers, and each and every New Mexican across this state,” he said in a written statement.

New Mexico is the nation’s second-largest oil producer.

Even as oil and gas revenue bolsters the state budget, environmental regulators are taking more steps to address air pollution.

New Mexico, for example, banned routine venting and flaring of natural gas earlier this year to become the first oil-producing state to regulate methane at all production sites, pipelines and gathering facilities.

Lujan Grisham, a Democrat, has also promoted renewable energy and ordered the state to join a national coalition seeking to combat climate change.

[CedarDave]

Governor MLG loves the revenue from the industry, but appointed oil and gas regulators in both the Environment Department and the Oil Conservation Division keep adding regulations to handcuff operators, especially small producers. Further the legislature is completely controlled by Democrats and in the NM House, especially there are nut-case legislators that would have the industry completely shut down to save the earth.

[CedarDave]

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[EvilCapitalist]

That’ll happen when a gallon of gasoline in $3.50 or more.

[Lockbox]

oil- and gas-derived income made up 35% of all general-fund revenue for the state budget last year....

Who would make up for any short fall? We know that government will not cut back, so do the citizens of NM understand the end result?

[guest7]

"Governor MLG loves the revenue from the industry"

Gosh, when everyone is forced to drive Tesla's...won't New Mexico go bankrupt?

[unclebankster]

“Who would make up for any short fall? We know that government will not cut back, so do the citizens of NM understand the end result?”

I’m not in New Mexico but we have similar retards running the State of Oregon. They don’t have any other options for revenue BTW.

One of the issue that never gets talked about is urban America’s war on the energy sector. Environmental autocrats and their puppet politicians want to ban, tax , and force the financial sector to stop loans to energy producers.

I wonder what side suburban women will side with?

Big bad energy(sarcasm) or clean environment..... Hmmmmm.

[CedarDave]

Who would make up for any short fall? We know that government will not cut back, so do the citizens of NM understand the end result?

The next most private source of income is the tourism and hospitality industry. Big ticket items like the annual ABQ Balloon Fiesta provide major income. A small amount is provided by chipmaker Intel and some very small tech companies. The movie and TV industries are well established here but receive tax credits.

The federal government has a major impact with two national labs and three air force bases plus White Sands test range (but most live in El Paso). Further, massive federal funds support New Mexico's Navajo and Apache tribes plus the dozen or so tribal pueblos scattered alone the Rio Grande River and west to the Arizona border.

New Mexico is not friendly to private business with all goods and services taxed except food at grocery stores. An engineer designing a road or building is required to add tax when delivering the design to his client. Same with a safety consultant, a contractor, a lawyer or any other business providing a service to a client. And it doesn't get any better if you retire here; your social security, pensions and other retirement income are taxed by the state.