NEW MEXICO (KRQE) – A new report shows the oil and gas industry brought in a record $5.3 billion to state and local governments. The New Mexico Tax Research Institute has published a report that indicates that the state’s oil and natural gas industry provided $5.3 billion in state and local tax revenue for the fiscal year 2021. According to the New Mexico Oil and Gas Association, this is the highest figure ever recorded in the state’s history.
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In a news release from NMOGA, revenue reportedly increased more than $500 million from the fiscal year 2020 on production growth and improving market conditions. This comes as the state also became the second-largest oil producer in the nation.
Previously, the 2019 industry record was $5.16 billion. The report also provides information on how industry taxes and revenue support $2.96 billion in state general fund revenue, $358 million in local taxes, and $1.95 billion in other state taxes, royalties, and revenues.
NMOGA states that revenues from federal mineral leasing is still the largest single source of income at $803 million which is down from the $811 million in the fiscal year 2020. The report cites higher than average prosecution and improving market conditions fueled revenue growth.