$10 billion reasons NM can’t afford to abandon oil and gas

New Mexico’s energy landscape is deeply intertwined with its economic stability and political priorities. The state’s renewable energy sector has grown in recent years, but oil and gas remain the cornerstone of its prosperity, providing unparalleled economic benefits and reliable energy for both the state and the nation. Despite efforts to transition to renewable energy, significant concerns exist about the long-term viability and fairness of these alternatives, particularly when compared to the proven success of oil and gas.

New Mexico is a leading oil and gas producer, thanks to its location within the resource-rich Permian Basin. In 2023 alone, the state’s oil and gas industry generated over $10 billion in revenues, enabling New Mexico to fund schools, healthcare, infrastructure, and public safety.

According to the New Mexico Oil and Gas Association, these revenues accounted for more than 40% of the state’s budget. Unlike renewables, the oil and gas industry pays significant excise taxes, royalties, and other fees to the state, ensuring a steady revenue stream and providing well-paying jobs to thousands of New Mexicans. The economic benefits of oil and gas are unmatched, supporting virtually every facet of the state’s government and public services.

In contrast, renewable energy—especially wind and solar—has faced criticism for its dependency on heavy government subsidies. According to a 2022 report from the Energy Information Administration (EIA), federal and state subsidies for wind and solar projects in New Mexico have amounted to hundreds of millions of dollars annually. Without these subsidies, many renewable projects would struggle to remain financially viable.

Additionally, wind and solar farms do not pay excise taxes comparable to those imposed on oil and gas production, creating a significant disparity. This is particularly troubling given that much of the renewable energy generated in New Mexico is exported to states like California and Arizona, leaving New Mexicans to bear the environmental costs without receiving proportional economic benefits.

Renewable energy projects also raise environmental concerns. Studies, such as a 2020 report published in the journal Nature Sustainability, highlight the significant land use associated with wind and solar farms, which often disrupt local ecosystems. Furthermore, the disposal of solar panels and wind turbine blades poses long-term environmental challenges, as these materials are difficult to recycle. The intermittent nature of wind and solar power requires backup systems, often relying on natural gas, to maintain grid reliability, undermining claims that renewables can fully replace fossil fuels.

Many New Mexicans remain steadfast in their support for the oil and gas industry. Beyond its economic contributions, oil and gas provide a reliable energy source that underpins the state’s infrastructure. Proponents argue that instead of shifting prematurely to renewables, New Mexico should focus on making its oil and gas operations more environmentally sustainable. Measures like the Methane Waste Prevention Act demonstrate that it is possible to balance economic growth with environmental stewardship without abandoning a proven industry.

Ultimately, New Mexico’s energy future must prioritize what works: oil and gas, supplemented by nuclear energy for sustainable and reliable power generation. Renewables, while a component of the energy mix, cannot compete with the economic and practical advantages of these established energy sources. By focusing on oil, gas, and nuclear power, New Mexico can secure its economic prosperity and maintain its role as an energy leader for decades to come.

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3 thoughts on “$10 billion reasons NM can’t afford to abandon oil and gas”

  1. That won’t stop the little troll from completing her destruction of New Mexico, she gets off on the power. She only cares about that, and that alone.

  2. “Green” communofascist plans serve only to undermine this country. They strip our ability to generate the energy required to drive our economy. The communofascists hate America, they will tell you as much; it’s obvious they would want to cause the US harm.

    Now, should we investigate and improve on renewables? You bet’cha!!! At the expense of our ability to generate energy? That would be insane. Additionally, the notions that A) renewables are ready to replace fossil fuels, B) renewables don’t have an environmental cost, and C) we understand how taking wind/solar energy from nature impacts the entire global system, are all ridiculous!

  3. Everyone wants to do what is best for our Mother Earth. The sad thing is just because we slap a sticker on something does not mean it is good for the earth. The green deals our governor is pushing is only putting money in the coffers of the CCP. The plan is to help the New world order take over the US. You will have less and be happy about it. It is too bad NMs are the worst in the nation and our people have failed to open their eyes, are only hope is they wakeup before it is too late.

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