Thu August 23, 2012
Oil production boosts state revenue
State officials say oil production in New Mexico rose by 13 percent last year, but natural gas production declined.
Top budget and tax officials in Gov. Susana Martinez's administration told the Legislative Finance Committee on Wednesday in Angel Fire that oil production reached 78 million barrels in the fiscal year ending in June. Economists expect production to gradually grow to about 86 million barrels in the next few years.
Higher oil prices have spurred production and are providing a revenue boost to the state.
Taxes and royalties from energy production are expected to account for 16 percent of the state's total revenue this year.
Lawmakers were told that gas production fell by about 1 percent last year and that prices remain low mainly because of increased natural gas supplies nationwide.