NEW MEXICO – New Mexico received US$2.2 billion in revenues from oil production in 2018, according to numbers from the state’s Tax Research Institute. This was a 26% increase on the year, or US$465 million.
As stated by the Albuquerque Journal, a substantial increase in investments and production in New Mexico contributed to the revenue increase, as did higher oil prices.
Nevertheless, oil and gas companies, and private equity firms are flocking to the Permian and drillers are pumping, which most recently caused pipeline bottlenecks that pressured the prices of Permian crude.
New Mexico and Texas are home to the Permian, the shale oil and gas play that has seen the strongest increase in investments over the last few years. This is due to the low-cost production spots.