NEW MEXICO – New Mexico oil and gas has rebounded from pandemic with numbers that suggest a near 4% increase in levels of production than last year. The pandemic devastated the oil and industries across the U.S. with New Mexico, like other states, has had an economic bounce back in the oil and gas industry.
Oil and gas typically brings in close to $3 billion in revenue to the state, but even during 2020, still saw close $2.8 billion in revenue according to the New Mexico Oil and Gas Association. Robert McEntyre, Communications Director of the New Mexico Oil and Gas Association, says, “We will continue to expand because a lot of the investment in a lot of the workers going back into the oil fields more so they’re coming back to the New Mexico side.”
Prior to the pandemic, oil and gas employed close to 134 thousand people, but the current number is still being figured by the Bureau of Labor report. New Mexico had close to 117 rigs in active use in 2019 but those numbers dropped to 48 rigs during the major economic crisis that took place during 2020.
However, there is a steady with things returning to a sense of normalcy with the current number now sitting at 73. “We anticipate that as the industry recovers as people get back to work and we have kids going back to school and over the summer we have families going on vacation,” McEntyre said, “That’s increasing demand for a product that our industry is starting to recover we are going to produce the energy that people are going to need in their daily lives.”
New Mexico is the third-largest state in terms of oil production, reaching a record of 1.176 million barrels of oil produced a day in March of 2021. Texas is the state with the largest oil production and North Dakota is the second.