Energy production—including natural gas—is vital to New Mexico’s economy. New Mexico plays an important role in America’s energy development, and New Mexico consumers and businesses benefit from natural gas availability.
Oil and natural gas contributed $2.8 BILLION to the New Mexico state budget in FY 2020, accounting for more than 33% of the total budget. This included nearly $1.1 billion to public education, $290 million to higher education, $640 million for health and human services, and $157 million to public safety. Oil and natural gas tax revenue represents more than 33% of the New Mexico state budget.
Nearly one-third of New Mexico is federal lands, with a significant portion of energy development taking place on federal lands in the state. In fact, New Mexico ranks first in oil production on federal lands and second in natural gas production.
Development on federal lands is critical in New Mexico with state economic growth, revenue and employment facing potentially severe declines under a leasing ban. In 2025, New Mexico could lose $7.81 billion in GDP, $1.77 billion in tax revenue, and 48.842 jobs.