This State is Pulling in Tons of Money Thanks to its Aggressive Oil Drilling

State and local budget are perpetually shrinking, it seems. But New Mexico is actually doing okay for itself. From Watchdog.org:

Oil production in New Mexico keeps on booming. Don’t expect it to go bust anytime soon.

In fact, some energy experts say the peak still hasn’t been reached. …

“I think the forecast is great” said Parker Hallam, president and CEO of Crude Energy in Dallas. “I’m excited.”

The Permian Basin, located in eastern New Mexico and West Texas, recently has become one of the world’s biggest sources for crude oil. …

The reason?

Horizontal drilling, using hydraulic fracturing — “fracking.” …

All that has led to plenty of action in eastern New Mexico towns like Hobbs and Artesia.

The Permian Basin’s 560 rigs account for a quarter of the rig count for the entire country, Hallam said.

And that means more money for New Mexico’s general fund because of severance taxes  taken from oil production in the state. Nearly one-third of the general fund comes from the oil and gas industry, and New Mexico’s Land Grant Permanent Fund has grown to nearly $14 billion thanks in large part to leases and royalties on extractive industries.

Watchdog.org’s full report.

Photo credit: New Mexico Oil & Gas Association