Posted on 03/21/2020 7:36:50 PM PDT by brownwill6767
Copyright © 2020 Albuquerque Journal
With oil prices plunging to their lowest level in 22 years, state legislators are projecting an imminent budget crisis that’s likely to force the New Mexico Legislature into special session.
Sen. John Arthur Smith, chairman of the Legislative Finance Committee, said the state could be facing a $1 billion loss in oil- and gas-related revenue if the crisis continues through this year and into 2021.
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In a Thursday letter to legislative leaders, Gov. Michelle Lujan Grisham indicated a special session is inevitable but said state officials need to have updated revenue estimates and a better understanding of federal emergency assistance before such a session is called.
She said the special session would likely focus on adjusting proposed spending levels for the budget year that starts in July, addressing public health needs and crafting an economic relief package for workers, businesses and New Mexico communities.
(Excerpt) Read more at abqjournal.com ...
Domestic producers will go bankrupt, not because of Covid-19 but because of the Saudis flooding the market to capture it. Once they accomplish that, then hold on while they jack prices back up to $70 barrel. If we start up again domestically, they’ll just flood the market again to drive us out of production. This is why the economy won’t recover for decades.
They won’t make that mistake again. Watch for a new 1 dollar flat tax on a gallon of Gas.
Will burn every drop of gas and diesel I can this summer.
like public schools and colleges
I hope the US government is wise enough to completely fill the strategic petroleum reserve with prices this low. That could also be a stimulus to US oil producers, not that it would fully cover their costs. Just checked on this. The US government is buying 77 million bbl from US oil producers. It is a first step to fill the reserve. Geez, I like the way Trump works. Do you think Obama would be doing that?
I doubt that...
Joplin, MO. $1.29 to $1.49.
Not following ammo/firearm sales here but expect they are up as they are in other parts of the country.
I remember billboards promising PNM would be all green energy in a few years. aint gonna fly without oil revenue.
0bama got me in pretty good shape, not to say BLOAT is not always a good idea.
Wow. Gas Buddy must be behind. The lowest prices I saw in Joplin, just now, were $1.49, BUT they were 9 hours old. Not as many people out driving, I’d guess.
Why so low there, I wonder.
Whups, spotted a $1.42. 5 hrs. old.
But I also just saw a $1.17: Hwy. 60, just SW of Henderson, KY, on US 60. My goodness!
I can’t remember Gas Buddy’s map ever looking so sharply spotty - huge variations within some regions of the country.
That’s what did in every record store, VHS/DVD store, book store and is doing to Gamestop.
That is a terrible article.
It spends the first 1/3 talking about state budget impacts, the middle 1/3 discussing oil production and barely final impact on them, then the last last third repeating the first 1/3 state budget crud.
They really don’t care about the “industry.”
Re the Marxist douchebag Governor of Mexico, Grisham, and here search for “the type of tools that might be available to make such as modification” (communications with the legislative leadership and staff), I might suggest a gigantic anal probe. Most fitting for her and her Democrat legislators.
The lesson here is not to depend on one or two cash sources for your state spending. See Venezuela.
New Mex has swung left, and is in need of some learning.
No shelter-in-place in KY, but 2 COVID-19 cases in Henderson County and 5 more in Daviess County (Owensboro) But Owensboro is running ~30-40 cents higher, and just across the river (Indiana) even higher.
Double whammy: Saudi-Russki brawl, plus shelter-in-place orders here.
I’m not a blanket “tariffs solve everything” person at all, but, maybe here? Use the proceeds to fill the Strategic Reserve with oil from US producers.
More accurately— Double whammy: Saudi-Russki brawl, plus shelter-in-place orders (or those expected) here.
In one month?
I have the solution...fire all the bureaucrats.
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