The latest New Mexico oil production highlight continued strong production

As oil prices dip under the $60/barrel level for the first time since the COVID 19 pandemic the Rio Grande Foundation is highlighting Energy Information Administration data which shows that (as of January 2025, the latest month available) crude oil production in New Mexico remains near record highs. You can see the data highlighted on the chart below.

While there is no question that the dropping per-barrel price of oil will impact future oil production and therefore New Mexico’s budget, this remains a production driven boom in oil revenues (not price-driven). How low prices can go before production begins to drop is an inexact science, but we believe that we are approaching that price point at $50/barrel. Of course, declining oil prices benefit motorists and other consumers.

A significant drop in oil and gas revenues will have inevitable impacts on New Mexico’s budget and economy although the State has $60 billion stashed away for its own use in case of a downturn. As the Rio Grande Foundation has noted repeatedly, the Legislature and Gov. SHOULD HAVE taken the opportunity to diversify and grow New Mexico’s private sector economy during the recent oil boom, but they have done nothing of the sort (and show no signs of changing their approach unless or until they are forced to by the voters).