New Mexico Energy

New Mexico has the energy supplies to help our nation achieve energy independence, while providing a major boost to the state’s economy. 


New Mexico is rich in energy resources, including traditional fossil fuels and renewables.  As no surprise, with the sun as the foundation for the state's flag, solar has significant potential in the Land of Enchantment, as do wind and biofuels.  Oil, natural gas, and coal, however, remain the state's major economic energy drivers, with the state's abundant stores of these traditional fossil fuels.

New Mexico crude oil output is approximately 3 percent of the nation's annual total, and natural gas production almost 10 percent. The San Juan Basin, located on the New Mexico-Colorado border, contains coal and is also the nation’s largest field of proven natural gas reserves. The state's production of coalbed methane, about one-third of the state’s total, is responsible for around three-tenths of all coalbed methane produced in the United States. 

Although more than two-thirds of New Mexico households use natural gas as their primary source for home heating, less than one-tenth of New Mexico’s natural gas is used in the state. The majority of New Mexico’s supply is delivered to the West Coast and to market centers in West Texas that supply the Midwest. (Source: New Mexico Legislature Oil and Natural Gas). 

Jobs and Economy
Oil and natural gas help boost New Mexico's economy.  The state receives about $2 billion in direct revenue from oil and gas production through severance taxes, property taxes, and royalty and rental income. Additional indirect income comes from sales and income taxes on oil and gas drilling and service, which generate about $300 million.  These revenues go to funding government services and proejcts, from roads and infrastructure to schools and hospitals.

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