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 4 percent of the nation's annual total, and among the top ten states for producing natural gas.  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. 

One fifth 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).

Coal-fired power plants supply almost two-thirds of New Mexico's net electricity generation. Natural gas supplies most of the remaining generation, with renewable resources, primarily wind, providing the rest.

Jobs and Economy

Oil and natural gas help boost New Mexico's economy, with the industry supporting 105,000 jobs and contributing $11 Billion to the state's economy.  The oil and gas industry's non-gas station employee salaries ($74,658) are almost double the state's all-industry average ($40,745).

Back in 2012, the state received about $2 billion in direct revenue from oil and gas production through severance taxes, property taxes, and royalty and rental income, and 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 projects from roads and infrastructure to schools and hospitals.

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