New Mexico to lose a third of state revenues if Biden shuts down oil and gas production on federal land

 AP:

Oil and gas development infused $2.8 billion into New Mexico coffers during the 2020 fiscal year and marked its second-highest total revenue ever reported despite a global price war and plummeting demand amid the coronavirus pandemic, according to a report released Monday.

The New Mexico Oil and Gas Association commissioned the nonprofit New Mexico Tax Policy Institute to analyze the economic impact of drilling on the state budget and the financing of education, public safety and other government programs.

Industry revenues, which accounted for about one-third of total state spending, were fueled by sustained production in the Permian Basin. Straddling southeastern New Mexico and West Texas, the area is one of the most prolific plays in the world as major energy companies have spent the last several years consolidating their focus on the region.

Too many investments have been made in recent years and too much potential remains in the basin for any companies to consider pulling out, said Ryan Flynn, the industry group’s executive director. That means production has remained steady despite the pandemic’s challenges and the state’s budget has continued to see benefits.

Mineral leasing on federal land was the single largest source of oil and gas revenue for the state at more than $800 million, according to the report.

However, the pace of development on federal lands is expected to change under a Biden administration, which already has vowed to target fossil fuels as part of its climate campaign. That includes blocking any rollbacks of environmental laws and banning new permits for drilling on federally managed public lands.

President-elect Joe Biden recently nominated U.S. Rep. Deb Haaland to lead the Interior Department, which oversees oil and gas development on federal land. A co-sponsor of the progressive movement’s Green New Deal, the New Mexico Democrat has said that she supports a ban on fracking and has suggested that leasing policies need to change to encourage more renewable energy development.
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This is a loss of direct revenues to the state and does not include the significant loss of jobs for those working in energy production.  It cannot be made up by switching to inefficient and unreliable alternative energy projects that have a history of failure.  California is an example of what happens when you try to rely on wind and solar for most of your energy needs. It results in rolling blackouts at the same time the left wants people to be plugging in electric cars and trucks for transportation.