Hitting the brakes

New Mexico’s oil and gas industry is teetering on a near-shutdown, slammed by plunging demand for oil and an unprecedented global market glut that’s slashed prices to 20-year lows.

New drilling in the Permian Basin in southeastern New Mexico is screeching to a halt, and many producers are starting to shut in existing wells to await better times. That, in turn, foreshadows a double whammy on the state budget, as government revenue tumbles from plummeting oil prices and forthcoming production declines.

New Mexico oil and gas revenues pay upwards of 35 percent of all state income. In January the economists were predicting a billion dollar surplus and the radical left-wing governor and all Dem legislature put their hatred of the industry aside to sign into law BIG increases in money for educators and other lib-favored causes. Shortly after the legislature went home and she signed the bills, the industry crashed and continues to do so. There are almost no other sources in NM for them to tap for income especially because many are shut down now.

BTW, except for the Las Cruces area, most all the covid-19 cases are in the ABQ/SF area and in northwest NM, likely among the Navajos.

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