Biden’s moratorium indeed causing drilling rigs to move out of New Mexico, will cause future production declines

In late January of 2021, the Biden Administration imposed a moratorium on oil and gas permits on federal lands. New Mexico is heavily-dependent on oil and gas drilling on federal lands while Texas is not. You can see the results of the moratorium below. Gov. Lujan Grisham’s own Energy Department has noted the shift in rigs from New Mexico to Texas. 

New Mexico is in a budget surplus situation thanks to oil and gas, but as the following chart shows, that situation won’t last under these restrictive policies. Undoubtedly New Mexico is in a precarious position with regard to Biden’s moratorium.

https://www.dallasfed.org/research/economics/2021/~/media/Images/research/economics/2021/0304/dfe0304c3.png

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