A new report released on Wednesday detailed that New Mexico sees a forecasted $350 million increase due to oil and gas royalties
Revenues for the state of New Mexico are tracking ahead of financial forecasts to the tune of $350 million, allowing the government to reduce the amount of money it will have to siphon out of its rainy day fund in the upcoming fiscal year.
According to Dawn Iglesias, the chief economist for the Legislative Finance Committee, “In addition to higher revenues, the state also expects to receive nearly $133 million more in its Tax Stabilization Reserve from excess oil and gas taxes,” reports the Santa Fe New Mexican.
Although active drilling rigs have declined from 114 in March 2020 to 71 now, “production in New Mexico is recovering even though the number of active rigs has declined.”
According to the New Mexican, “The state is expected to produce about 390 million barrels in the new fiscal year. That’s 20 million barrels more than projected in February. Each additional million barrels of oil generates about $3 million for the general fund.”
But despite oil and gas being to thank for economic recovery, the fringe leftist group ProgressNow New Mexico began a new campaign trying to destroy the oil and gas industry with a bizarre campaign called “Crude Intentions NM,” filling and pouring onto random objects what appears to be crude oil.
The extremist group, which is tied directly to the ANTIFA domestic terrorist organization, claims the oil and gas industry is “burdensome” to the state despite it being a major funding source for critical life-saving medical facilities, education, and infrastructure.
The group is trying to blame oil and gas (which has no seat at the table in terms of building and educational curriculum, just funding) for the state’s failed education system. ProgressNow New Mexico writes, “Big Oil contributes to New Mexico’s education system, but our public schools rank worst in the nation. We need better education for our kids, not this toxic mess.”
The same hollow “the sky is falling” rhetoric mimics another discredited fringe group “Wild Earth Guardians,” which claimed in an online petition, “If oil and gas were the key to New Mexico’s prosperity, the state would be one of the most prosperous in the United States. It’s not even close,” adding, “The state ranks last in quality of education, has the second highest poverty rate in the United States, and was recently ranked the third worst state in the nation.”
The liberal groups do not, however, blame the poor education system on failed Common Core standards or the Democrats’ control of the state in electoral politics for the last 80+ years.
Larry Behrens, Western States Director for Power the Future, a pro-energy group, wrote in a statement, “On the same day we learn New Mexico’s energy workers have helped deliver a $350 million increase to the state budget we find one radical group attacking those workers. This is nothing more than a desperate attempt for this fringe group to find relevance and it’s clear their attempt to go after oil isn’t very slick.”