New Mexico Energy

New Mexico is the seventh-largest net supplier of energy to the nation, primarily because of its fossil fuel production. 


About one-third of New Mexico's land is federally administered, and the state is second only to Wyoming in the number of producing oil and natural gas leases on federal land.

The state is rich in energy resources.  With the sun as the foundation for the state's flag, solar has significant potential in the Land of Enchantment.  Combined with wind, hydroelectric, biomass and geothermals, renewables produce about 31% of the state's 2017 electricity.  Yet it is traditional fossil fuels that remain the state's major economic energy drivers.

New Mexico holds 4% of U.S. proved crude oil reserves, and is the sixth-largest oil producing state.  It is also among the top ten natural gas producing states, again accounting for 4% of the country's natural gas output.  

New Mexico's Permian Basin, with about 30,000 crude oil wells, contains 2 of the nation's 100 largest oil fields. Oil production in the state, which had been relatively steady for several decades, has more than doubled since 2009, with monthly output topping 500,000 barrels a day in the fourth quarter of 2017 for the first time ever. 

New production has come online as a result of advanced drilling and oil recovery technologies in low-permeability formations in both the Permian Basin in the southeastern part of the state and from the San Juan Basin in the northwest.

 

Jobs and Economy

Oil and natural gas contributes $11 billion of value to New Mexico's economy
The industry supports 105,000 jobs.  The non-gas station employee salaries (average: $74,658) are almost double the state's all-industry average of $40,745.

 

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