NM’s oil industry: No. 2 producer in the nation despite state’s Green New Deal
As of 2024, the United States remains the largest crude oil producer in the world, maintaining its top position since 2018. While Texas often steals the spotlight, New Mexico has emerged as a vital player, ranking as the second-largest oil-producing state. This rise has cemented New Mexico’s role in driving U.S. energy production forward.
New Mexico produced an impressive 665.55 million barrels of oil in 2023, accounting for 14.1% of the country’s total crude oil output. In August 2024 alone, the state contributed 64.85 million barrels, showcasing steady production growth.
According to the Independent Petroleum Association of New Mexico (IPANM), “New Mexico is the second-largest domestic oil producer and one of three states that saw an increase in production from 2019 to 2020, despite the reduced demand brought about by the pandemic.” This resilience underscores the state’s ability to adapt and thrive, even in challenging market conditions.
Much of New Mexico’s success stems from its access to the Permian Basin, a geological treasure trove of oil reserves. Advances in drilling technologies, such as horizontal drilling and hydraulic fracturing, have played a significant role in unlocking these resources.
The state’s efforts have not only elevated its oil output but also bolstered its economy. The industry provides over $2.5 billion annually to fund essential public services, including education, infrastructure, and healthcare, while serving as New Mexico’s largest employer.
Despite its reliance on oil, New Mexico has balanced its energy dominance with a focus on broader economic contributions. As IPANM notes, “Despite oil’s historical and economic importance in New Mexico, mining, including oil and natural gas production, accounts for just one-tenth of its GDP.” This duality highlights the need for diversification to ensure long-term economic stability.
New Mexico’s transportation sector, responsible for over 80% of the state’s petroleum consumption, further underscores the importance of its oil industry.
Despite New Mexico being a leader in oil production, far-left New Mexico Democrat leaders passed the “Energy Transition Act,” the state’s Green New Deal, in 2019, aiming to annihilate the industry by the next decade.
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