Report: New Mexico oil, gas boom to continue

The Albuquerque Journal ^ | September 3, 2019 | Susan Montoya Bryan, AP

[CedarDave]

New Mexico’s oil and gas industry is expected to keep growing at a record pace, resulting in more revenue for the state and billions of dollars in new infrastructure investments to get the commodities to market, according to a study commissioned by industry trade groups.

The predictions were outlined in a report presented to state lawmakers during a meeting Tuesday in Roswell. The report, compiled by a national consulting group, was commissioned by the New Mexico Oil and Gas Association and the American Petroleum Institute.

Analysts estimate it will take $174 billion of new infrastructure to keep pace with expected growth through 2030. That would include investments by the industry in new pipelines, access roads, well pad construction, processing plants and refineries.

With continued growth, the report estimates, production value in New Mexico would increase from $17 billion in 2017 to more than $72.6 billion in 2030, tripling the industry’s contribution to the state’s gross domestic product. Local and state revenues from the industry also would more than double.

[CedarDave]

The state is #3 in oil and gas production and this year alone has $1.3 billion in surplus in the treasury and funds upwards of 35% of state government. The new far-left radical environmentalist governor, Michelle Lujan-Grisham, has declared war on the industry with new regulations and most recently an attempt to shut down new wells because they must flare methane until pipelines are available to move it. Natural gas is so cheap that some producers are paying to get it off the lease (oil is what brings in the $$).

And still, with gas so cheap, she and her Rat cronies who control all state government passed legislation that will require NM electric companies to rid themselves of fossil fuel generation by 2045 and instead rely only on solar and wind generated power. The cost to us poor consumers will be much greater. It remains to be seen how long the voters will put up with it when the bills get higher. And BTW, she is trying to get the next legislative session to change the way the electric industry is regulated - currently the commissioners are elected, she wants the power to appoint them. Does this sound anything like the way Venezuela started its downward spiral?

[CedarDave]

NM list PING!

I may not PING for all New Mexico articles. To see New Mexico articles by topic click here: New Mexico Topics

To see NM articles by keyword, click here: New Mexico Keywords

To see the NM Message Page, click here: New Mexico Messages

(The NM list is available on my FR homepage for FR member use; its use in the News Forum should not be for trivial or inconsequential posts. Let me know if you wish to be added or removed from the list.)
(For ABQ Journal articles requiring a subscription, scroll down to the bottom of the page to view the article for free after answering a question or watching a short video commercial.)

[RArtfulogerDodger]

This has to be stopped. Hopefully our politicians will step in and repair damage to the environment, which is really, um, just a freaking dam DESERT with NOTHING in it!!!

[unixfox]

Michelle Lujan-Grisham, has declared war on the industry...

That cuts both ways. When the war starts on people like her it's not going to be pretty. No matter what kind of protection she thinks she has.

[Rinnwald]

That sucks, more prosperity for my liberal friend who moved to New Mexico.

He was a friend from high school. Went kinda nuts after Trump won. Broke all contact with me. Moved to bucolic Albuquerque, and has already had his home shop broken into twice.

Guy owns a business in the auto parts industry, doesn’t like taxes, and prefers muscle cars. And yet he is a hook line and sinker liberal. Cognitive dissonance.

[rktman]

And those benefiting from the boom better move out of state before the new tax rates kick in. :-)

[HighSierra5]

Methane and other chemicals are being produced in great amounts on Saturn’s moon Titan. There has to be something other than fossils producing them hear. I was watching NASA channel and the scientists are getting a new mission called “Dragonfly”. It’s basically a large drone to explore Titan. Maybe they will discover that oil and other fuels are being constantly produced and that process may translate to our earth’s resources. Remember when we were going to run out of oil? I don’t think so.

[bert]

I have traveled throught the area. Hard to believe

[Reily]

There are interstellar methane clouds.

https://en.wikipedia.org/wiki/List_of_interstellar_and_circumstellar_molecules

Read “The Hot Deep Biosphere” by the late Dr Thomas Gold
(of Bondi,Gold, & Hoyle - steady state universe fame, now replaced by Big Bang arguments. Who knows maybe we will go back to it!)

https://www.amazon.com/Deep-Hot-Biosphere-Fossil-Fuels/dp/0387952535/ref=sr_1_1?crid=1Y3YXWVAQ84O2&keywords=deep+hot+biosphere&qid=1567628643&s=gateway&sprefix=hot+Deep+bio%2Caps%2C143&sr=8-1

Now I think Dr Gold goes overboard in his arguments - for example anthracite. I am willing to entertain a case for abiotic oil & gas production and that it contributes to the fossil-based oil & natural gas. The necessary organic life exists to do this - the extremophiles. I lot of work needs to be done to fully make the case.

https://en.wikipedia.org/wiki/Extremophile

The Russians seem to be the only ones doing much on this.
US oil industry “pooh-poohs” it.

[shanover]

The state has a bonanza in revenue from petroleum and the fidiots elect a government that is just as bad as one from California,New Jersey or New York. The state will be run into the ground even after sucking all of the oil profit and the industry will be run like it’s run in Venezuela.

[Amendment10]

Based on thread below, the problem with NM’s oil, gas boom is this.

Misguided, mismanaged Democratic-controlled NM State government is spending state revenues faster than wells can gush the liquid / gas “gold" out.

New top New Mexico tax rate likely to go into effect

Corrections, insights welcome.

[CedarDave]

You have it correct. The Dems used the excuse that oil and gas production is boom and bust and the state needed a “stable” income stream so they raised taxes.