[REGIONAL NEWS] Economists warn about reliance on oil and gas

The surge in oil drilling in southeastern New Mexico has been the driving force behind a recent state budget turnaround.

 

By Dan Boyd | Albuquerque Journal

Despite a recent drop in oil prices, New Mexico economists are leaving unchanged a revenue forecast that projects the state will have $1.1 billion in “new” money – or revenue in excess of current spending levels – available in the coming budget year.

The surge in oil drilling in southeastern New Mexico has been the driving force behind a recent state budget turnaround, with taxes and royalties levied on the industry and related economic activity boosting state revenue levels to an all-time high.

Although oil prices have gone down in recent months, oil production levels have continued to rise – with the total number of oil rigs hitting 112 this month.

:“Oil producers in the Permian basin have significantly lowered break-even costs, meaning many wells can remain profitable at lower prices,” executive and legislative economists wrote in their revenue update that was presented Friday to members of the House budget committee.

READ ON

Share this!

Additional Articles

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.

News Categories
February 2019
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728