The Permian Basin became the world’s most productive oilfield in 2019, and New Mexico is reaping the financial benefits. The state saw a significant revenue surge this year, resulting in a projected $7.8 billion collected.
The New Mexico Oil and Gas Association estimates the state produces 900,000 barrels of oil a day. It anticipates the state will surpass 300 million barrels of oil in 2019, the third year in a row for the state for record-setting production. Projections from the state’s Legislative Finance Committee (LFC) predict the state could see over $900 million in new money in 2020, due in large part of growing oil and gas royalties generated in 2019. Oil and gas now makes up 40 percent of the state’s budget.