As RGF has discussed, unlike the past, New Mexico’s current oil and gas boom is being driven by strong production. That means that even if prices per barrel drop, New Mexico will still see historically-strong revenues. It is also contrary to the left-wing narrative that New Mexico is going to see oil/gas revenues dry up or the nation/world abandon fossil fuels anytime soon.
Now, the latest report is that New Mexico’s oil and gas revenues exceed expected levels by $581 million above December estimates. That is above estimates made as recently as December for the current 2023 fiscal year which ends June 30.
As the New Mexican article notes, Democrats in the Legislature are upset the Gov. vetoed several “green” subsidies. RGF is frustrated the Legislature didn’t include needed GRT reform in the tax reform package and that the Gov. vetoed even rate reductions.
Regardless, the report points to the fact that the revenue boom continues and that MLG and the Legislature have another opportunity to enact needed tax reform.