oil and gas

NM land commissioner issues edict further restricting oil and gas

13 Comments / New Mexico, News, Politics / By

On Friday, Democrat state Land Commissioner Stephanie Garcia Richard issued an executive order from her office banning any oil and gas leasing within one mile of any school. 

She wrote in the edict, “I, Stephanie Garcia Richard, Commissioner of Public Lands, do hereby order and direct that the state trust lands located within one mile of a school or other educational institution shall not be leased for new oil and gas purposes until further order, effective immediately.”

It also read that “nothing herein shall restrict the State Land Office from authorizing the placement of infrastructure or permitted uses for the purpose of ensuring that appropriate public health, safety or environmental standards are met,” apparently attempting to usurp more broad power to restrict the oil and gas production under the guise of “health” and safety.” 

Nowhere in the order are citations to any studies or scientific evidence to justify her action. 

During a press conference, Garcia Richard said, “There is no reason to greenlight operations that produce dangerous pollutants so close to schoolkids when we have millions of acres of state lands to work with.”

“Ultimately, we need a public health buffer around schools enshrined in state law, and this order provides an opportunity to engage the Legislature, regulatory agencies and other stakeholders on developing a comprehensive and long-term solution,” asking lawmakers to pass legislation to codify this order.

Jim Winchester, Executive Director of the Independent Petroleum Association of New Mexico, wrote, “IPANM agrees that safe and reasonable setbacks are necessary between certain production sites and schools, however, we have concerns that the distance to be enforced under the State Land Office’s assumed discretionary authority is arbitrary and isn’t based on any definitive evidence of health impacts.”

“While it would have been appropriate for the State Land Commissioner to consult with industry before issuing this order carte blanche, we will work with her office on a case-by-case basis if there are particular tracts of land that might otherwise be safely and responsibly developed to provide critical revenues to improve New Mexico’s schools.”

Oil and gas revenues comprise 50 percent of the state’s General Fund, meaning further restrictions will directly harm state programs funded by oil and gas, such as education and health care.

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Anti-oil and gas Dems get shockingly bad news from new LFC report

22 Comments / New Mexico, News, Politics / By

Anti-oil and gas New Mexico Democrats won’t like the latest numbers provided by the Legislative Finance Committee (LFC) in its 188-page end-of-session review report, showing that 50 percent of New Mexico’s General Fund revenues come from oil and gas. 

The Rio Grande Foundation’s president Paul Gessing wrote regarding the shocking revelation, “One interesting item among many is the chart below which shows that even as the Gov. and Democrats who control the Legislature claim to want to ‘diversify’ the economy and even dismiss New Mexico’s role as an energy state, New Mexico’s budget has become even MORE reliant on oil and gas revenues in recent years.” 

“[More] than 50% of New Mexico’s general fund revenues (nearly $7 billion in 2023) comes from oil and gas. As a reminder, the state’s FY 2023 revenues were approximately $11 million (according to the LFC), but it spent $8.4 billion in FY 2023 (the FY 2024 budget was just passed, and that is $9.6 billion),” the group continued.

Since Democrat Gov. Michelle Lujan Grisham took the reins in 2019, she has continued to attempt to crush the oil and gas industry in New Mexico, first by passing the extremist Green New Deal, the “Energy Transition Act,” meant to eradicate the oil and gas energy sector totally. 

However, as the Democrats continue spending rapidly on social programs and other handouts, they have become increasingly reliant on the oil and gas industry, which is doing the heavy lifting for New Mexico — an extraordinarily natural resources-rich state. 

For years, New Mexico Democrats have tried and failed to pass the “Green Amendment, meant to open an endless Pandora’s Box of litigation to halt oil and gas completely. They also have tried and failed to ram through a 50+ cent per gallon gas tax via a “clean fuel standard,” which would have also irreparably harmed the state’s energy industry.

New Mexico responsible for astonishing amount of all U.S. oil production growth

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Lujan Grisham makes ghastly assertion about New Mexico’s energy identity

21 Comments / New Mexico, News, Politics / By

While speaking at POLITICO’s energy summit Thursday, Democrat New Mexico Gov. Michelle Lujan Grisham angered eco-leftists over her justification for vetoing electric vehicle tax credits in the omnibus package previously passed during the 2023 Legislative Session.

“These were important but way too small,” Lujan Grisham said of the tax credits. “These benefits were so small, they don’t move the needle. Sometimes when you get something, you don’t get a second bite at it.”

Eco-leftists charged the governor with “blowing smoke” with her “bull***t response.” 

However, other comments Lujan Grisham made at the summit have New Mexicans concerned.

The governor told the moderator during the event, “We have free college,” adding, “I’m producing workers in the renewable energy sector.”

She then said, “New Mexico was framed, and in fact, I might…I do disagree with that frame as an energy state and a leader in energy” (emphasis added).

On the contrary, New Mexico was responsible for the largest U.S. oil production growth in 2022 at 50 percent — beating all other states, as we previously reported. Much of the state’s massive $9.4 billion budget derives from the booming oil and gas industry.

A policy and performance analysis for the 2024 fiscal year from the Legislative Finance Committee noted, “Bolstered by high oil- and gas-related revenues, growing incomes, strong consumer spending, and inflation, New Mexico is experiencing record-high revenues across all major revenue streams.” 

The free market think tank, the Rio Grande Foundation, asked regarding Lujan Grisham’s comment, “On what planet is New Mexico NOT a… leader in energy?”

New Mexico, which is the second-highest oil-producing state in the country, certainly is an energy state, and any assertion otherwise is a fabrication of the truth.

WATCH:  

Governor’s feeble excuse reignites eco-left’s fury over EV tax credit veto

Lujan Grisham makes ghastly assertion about New Mexico’s energy identity Read More »

New Mexico responsible for astonishing amount of all U.S. oil production growth

7 Comments / New Mexico, News / By

According to the U.S. Energy Information Administration (EIA), New Mexico was responsible for an astonishing 50 percent of all U.S. oil production growth in 2022.

Oilprice.com reports, “For the third year in a row, New Mexico’s oil production growth eclipsed the growth of crude output in any other U.S. state, including Texas, the biggest U.S. oil-producing state and also home to part of the Permian shale basin.”

“Crude oil production in New Mexico jumped by 300,000 (barrels per day) bpd to 1.6 million bpd in 2022, a record for the state, the EIA has estimated.”

EIA’s offices are located in the James V. Forrestal Building in Washington, D.C., via Wikimedia Commons.

Crude oil production declined for the eighth year in a row in California and for the fifth year in a row in Alaska. 

“North Dakota, which had been one of the leading states in oil production growth in the past decade, saw oil production fall for the third consecutive year in 2022,” the report notes.

“The administration forecast in its Short-Term Energy Outlook (STEO) in May that U.S. crude oil production would continue to increase this year and next. Total U.S. crude oil production is set to climb to 12.5 million bpd in 2023 and to 12.7 million bpd in 2024, according to EIA’s most recent estimates.”

The EIA wrote, “More drilling activity leads to more oil production growth, and we follow the number of active drilling rigs reported by Baker Hughes. Based on this data, the number of land rigs increased by 8 in New Mexico, by 100 in Texas, and by 85 in all other states combined in 2022. In 2023, through the first week of May, the number of land rigs decreased in Texas by 8 and increased in New Mexico by 5.” 

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MLG copies former GOP opponent’s rebate plan she once called ‘socialist’

16 Comments / New Mexico, News, Politics / By

In a strange turn of events, far-left Democrat Gov. Michelle Lujan Grisham is urging New Mexico legislators to adopt a $750 to $1,500 rebate plan with the new windfall of over $1.1 billion in “new money” to spend in the new fiscal year due to increased oil and gas proceeds

The Albuquerque Journal reported, “The specific size and scope of the rebates remain under negotiation with the session just over a month away, but a spokeswoman for the Democratic governor said Tuesday the rebates could be in the ballpark of $750 per taxpayer – or $1,500 per married couple filing jointly.” 

“The governor has been working for several months to urge the Legislature to support using a portion of the one-time funds to deliver another rebate to New Mexicans as they continue to experience high costs due to inflation,” Lujan Grisham’s press secretary Nora Meyers Sackett said.

“The record-high revenue projections present a unique opportunity to keep more money in New Mexicans’ pockets, and the governor will continue to push for an additional round of rebates as we near the legislative session,” she continued.

Backtracking to the 2022 campaign, where Lujan Grisham beat her GOP opponent Mark Ronchetti, she blasted his campaign’s plan to give tax rebates based on oil and gas production — essentially the same policy she is proposing now. 

Ronchetti’s website read during the campaign, “At current oil and gas production and budget surplus levels, this would amount to more than $500 for every man, woman, and child in New Mexico.”

In July, Lujan Grisham’s campaign railed against Ronchetti’s plan, calling it a “fiscally irresponsible socialist scheme” that would eliminate funding for the state budget. The governor’s administration has now copy-pasted the Ronchetti plan.

Lujan Grisham’s previous critique of Ronchetti’s plan came after she approved robbing the Land Grant Permanent Fund of billions to pay for socialist “free” daycare, approved $75 million annually for socialist “free” college (including for illegal aliens), and promoted full-blown socialist policies, such as the state’s “Energy Transition Act,” also known as the Green New Deal to implement the socialist Rep. Alexandria Ocasio-Cortez-style policy.

MLG, who promotes socialist policies, claims Republican Ronchetti is a socialist

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LFC announces $1.1 billion in new oil and gas money for Dems to blow

9 Comments / New Mexico, News, Politics / By

On Monday, the Legislative Finance Committee (LFC) announced that it projects around a $1.1 billion increase in new revenue for the fiscal year 2024 thanks to the oil and gas industry. 

The report projects $3.6 billion in recurring revenue for the year, a massive  42.7 percent increase from the roughly $2.5 billion revenue estimate for the 2023 fiscal year.

The “new” money will mean more funds for legislators to spend or save during the next legislative session, which starts on January 17, 2023. 

Despite Democrats being hell-bent on knee-capping the oil, gas, and coal industries in every possible way, the funding to the state coffers for education, health care, and other key pieces of the budget comes thanks to extractive energy industries.

Many legislators have urged the state to use excess funds for one-off projects that benefit the long-term fabric of the state, such as infrastructure projects to fix roads and rebuild aging government buildings. 

One project Democrat Gov. Michelle Lujan Grisham is adamant about ramming through is $10 million to build a new abortion center in Las Cruces to abort even more Texas mothers’ children. 

State Sen. George Muñoz (D-Gallup), the Senate Finance Committee chairman, said after the LFC report, according to the Santa Fe New Mexican, “No one in this state’s history has ever had this opportunity, and if we don’t use this opportunity to fix problems within our agencies, fix problems within our schools, then we’re going to lose out.”

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Pro-energy group sounds the alarm on Biden slowing down oil leasing in NM

8 Comments / New Mexico, News, Politics / By

Joe Biden, in recent weeks leading up to and after the November 8 midterm election, has been sending mixed messages about American gas prices, which have continued to be setting records throughout his time in the White House.

Energy in Depth, a project of the Independent Petroleum Association of New Mexico, wrote regarding Biden’s continually changing rhetoric on gas prices, “At a rally in New Mexico earlier this month, [Joe] Biden claimed that there has been no slowdown in leasing in the state – although the facts say otherwise. But while campaigning for Democrats in New York state, President Biden bragged that there will be ‘no more drilling’ under his tenure.” 

“These mixed messages have real effects, particularly in states like New Mexico, where a large part of oil and natural gas production takes place on federal lands. In 2021, New Mexico became the second-largest producer of oil in the country, with approximately 54 percent of that production taking place on federal lands. Royalties and other payments from the oil and natural gas industry make up approximately 35 percent of New Mexico’s budget, which funds essential infrastructure, education, and healthcare priorities.”

Biden erroneously claimed at the rally for the reelection of anti-energy Democrat Gov. Michelle Lujan Grisham, “I know we have a lot of leases out here in New Mexico for oil companies. And we haven’t slowed them down at all. They should be drilling more than they’re doing now. If they were drilling more, we’d have more — more relief at the pump. But the oil industry hasn’t met their commitment to invest in America and support the American people.”

But according to an analysis from the group, the Biden regime has significantly slowed down leasing in New Mexico, right in the middle of a global energy crisis. Energy in Depth “took the total number of parcels offered by the Bureau of Land Management in New Mexico during a given Presidential administration and divided it by the number of years each president was in office to get the average number of parcels offered each year – and the results are startling.”

Biden has offered massively lower numbers of parcels for sale than the past two presidential administrations. The group said the Biden administration has offered 90.7 fewer parcels annually than the Barack Obama administration and 93.7 fewer than the Donald J. Trump administration.

“[T]he Obama and Trump administrations held an average of 3.25 and 3.5 lease sales in New Mexico per year, respectively, as President, while the Biden administration has only held or scheduled a total of two sales, with a current average of 0.67 lease sales per year. Even if the Biden administration were to hold three lease sales in 2023, it will have only offered an average of 1.7 lease sales per year in New Mexico – significantly less than the Obama and Trump administrations,” wrote the group.

Under the administration of New Mexico Gov. Lujan Grisham, many anti-energy bills have passed the state legislature, including the state’s version of the Green New Deal, which will wipe out the energy industry in New Mexico.

Pro-energy group sounds the alarm on Biden slowing down oil leasing in NM Read More »

MLG refuses to answer Hobbs newspaper’s candidate questionnaire

12 Comments / New Mexico, News, Politics / By

In her latest snub to the conservative city of Hobbs in Lea County, Democrat Gov. Michelle Lujan Grisham flatly refused to answer a simple candidate questionnaire from the newspaper, the Hobbs News-Sun. 

The questionnaire had relevant inquiries about the oil-rich part of the state, specifically if the candidate would support the industry and its high-paying jobs.

Republican nominee Mark Ronchetti responded, “ New Mexico’s oil and gas industry is the backbone of our state’s economy.” He added, “I’ll implement an oil and gas rebate program.”

Karen Bedonie, the Libertarian candidate and former Republican who left the GOP, said, “I am a realist and I realize the major role of the New Mexico oil and gas industry to the state and I definitely know the economic importance it holds in our economic future.”

According to the News-Sun, Lujan Grisham refused to answer the questions.

“A spokesperson for the Gov. Michelle Lujan Grisham reelection campaign, Delaney Corcoran, informed the News-Sun about 10:22 a.m. on Oct. 4 [Lujan] Grisham will not answer the questions sent to her on Sept. 22,” the outlet reported.

This is not the first time Lujan Grirhsm has been hostile toward Hobbs. During her pandemic press conferences, she railed against the conservative community.

As we previously reported:

Lujan Grisham then went on to compare random photographs from Taos and Hobbs, one showing a sunny, bright day in Taos, where people were wearing face masks as far as the eye could see. However, the other photograph Lujan Grisham showed was one of an unnamed establishment in Hobbs, which appeared to be a snitch photo submitted to her office picturing people eating inside and not wearing masks. 

As well, she said, “I don’t think the individuals were trying to support a local business,” then claiming “we’re getting… those photos and many calls and many complaints, and we’re going out.” 

Other than threatening local law enforcers with fines and citations after her rant at the Hobbs business, Lujan Grisham then claimed, “Nobody wishes that restaurants have a situation where they have a situation where they are challenged to make it. Every business — every small business is worthy of New Mexico’s attention and support.” It may not appear that way, with the New Mexico Restaurant Associaton estimating that 20% of restaurants across the state will close forever.  

Lujan Grisham continued, saying, “And I know that New Mexicans also know we are also debating these issues in front of fact-finders — judges — statewide, and I believe in the independence and authority of judges. And we will adhere to whatever judicial action comes down any number of these. But we are citing. We are closing, and I will tell you this. For local law enforcement: where you are also — it’s bad enough that you won’t help us cite folks who aren’t wearing masks and organizations and businesses and restaurants following public health orders — if you are violating a public health order, there are civil and criminal tools at our disposal. And local law enforcement — including the sheriffs who have been posting photos of themselves eating returns — should expect to be cited as such and to be held accountable.”

After snubbing the Hobbs News-Sun, Power The Future’s Larry Behrens said, “Given Governor Lujan’s Grisham’s massive record of failure, particularly in energy policy, it’s not a surprise she has no response. Governor Lujan Grisham has never felt accountable to the people of New Mexico, especially those in the energy industry in southeast New Mexico. The cost of gas is shooting up again, massive inflation is hurting struggling families and all Michelle Lujan Grisham can offer are non-answers to accompany her non-accomplishments.”

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Leftist editorial: ‘Ironic’ MLG failed to ‘diversify’ economy despite big talk

2 Comments / New Mexico, News, Politics / By

Although the far-left Santa Fe New Mexican editorial board noted how Democrat Gov. Michelle Lujan Grisham’s attempts at “diversifying” New Mexico’s economy with leftist policies has failed, it now proposes spending a large chunk of the state’s projected $2.45 billion in new revenue on social programs and broadband.

The board wrote, “Despite the continuing efforts to diversify the state economy — cannabis, film and television, outdoor industry, local agriculture — the state is growing more dependent on oil and gas, according to figures from the Legislative Finance Committee. About 45 percent of the state budget will be tied to that industry in fiscal year 2024, economists said last week at a committee meeting in Chama.”

“That’s ironic, considering the efforts Gov. Michelle Lujan Grisham has put into transitioning New Mexico to renewable energy sources that won’t run out or pollute. New Mexico is moving to renewables, but oil and gas dollars still pay the bills — and will for years to come,” it continued.

Then, the board lauded Lujan Grisham’s far-left policy proposals, including passing taxpayer-funded daycare programs, $75 million annually for taxpayer-funded college, and other social programs that drain the state’s coffers. 

Therefore, to fix “climate change” and, “generational poverty,” the New Mexican’s editorial board says the state needs to “reform” its tax structure and invest in broadband while saving “some” of the billions for when “the budget goes bust again.” 

The notion of saving some money for a rainy day is the opposite of what many Democrats in Santa Fe and Gov. Lujan Grisham have in mind, with a hankering to spend as much money as possible on recurring socialist programs while failing to “diversify” the state’s economy despite demonizing the oil and gas industry. 

According to reports, the Permian Basin in southeast New Mexico and Texas has enough oil to last 200 years. Because of this, oil and gas remain a stable and lucrative resource New Mexico would be wise to continue utilizing for a long time. 

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Group appeals MLG admin’s latest move to raise the cost of gas

11 Comments / New Mexico, News, Politics / By

While New Mexicans struggle to make ends meet amid high gas prices, skyrocketing food costs, and an economy that remains in a recession, Democrat Gov. Michelle Lujan Grisham’s administration is working overtime to raise the cost of gas.

New Mexico’s Environmental Improvement Board adopted new ozone pollution rules in April, which went into effect on Friday, spurring the Independent Petroleum Association of New Mexico to file a legal appeal challenging the rule, which would increase the cost of gas.

Jim Winchester, Executive Director of the Independent Petroleum Association of New Mexico (IPANM), said, “At a time when the public supports responsible domestic production to reduce gasoline prices and a decrease in our dependency on foreign sources of energy that are unquestionably worse for the environment, IPANM strongly feels this is the wrong rule at the wrong time.”

He continued, “While IPANM does support a fair and balanced Ozone Precursor regulation, we have no choice but to appeal this version of the rule that will force operators to plug still-productive wells and will inflict economic hardship on New Mexicans with little to no gain for the environment.”

IPANM wrote in a press release, “Today’s filing with the New Mexico State Court of Appeals against the Environmental Improvement Board will be followed by technical arguments to be filed by IPANM within 30 days that will identify the specific provisions to be challenged. With the matter now in the court, IPANM will not comment on the specifics of the pending objections other than to point to our concerns raised throughout the 3-year process that were not included in the New Mexico Environment Department’s final draft rule submitted to the EIB.”

In April the group noted the out-of-state environmental groups rigging the process to benefit their interests while ignoring consumers who will be saddled with the cost of such regulations. IPANM wrote then, “IPANM’s concern throughout this process is that the state would appease out-of-state environmental groups pushing provisions based on anti-oil & gas ideology instead of real emissions data and facts. Unfortunately, the state’s own news release seems to confirm our suspicion by offering the celebratory quotes of environmental groups and a Biden administration that has blatantly declared war on domestic production while encouraging foreign adversaries to produce, pollute, and export fuels to the United States without any accountability.”

Following the new rule going into effect, Larry Behrens, the Communications Director of Power The Future, wrote, “It’s clear Michelle Lujan Grisham feels our families aren’t already paying enough. After her failed attempt to raise the cost of gas through the legislature, Governor Lujan Grisham is acting like Joe Biden and simply issuing new orders.”

“This rule will not only raise the cost of living on our families, but it will place a massive burden on the remaining small businesses that are already struggling. This appeal is a critical first step to stopping Governor Lujan Grisham from taking unilateral action to raise the cost of gas even further,” Behrens concluded.

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