Oil and Gas Still Paying the Bills in NM

Albany Times Union — New Mexico is seeing record amounts of revenue from drilling leases. The increase comes as improved drilling techniques and the consent of potash miners persuaded the State Land Office this year to open previously off-limits tracts of land in New Mexico's southeastern counties to oil companies. The State Land Office in June recorded unprecedented bid levels at its monthly oil and natural gas lease sale in by auctioning off leases on nearly 8,400 acres, mostly in Eddy and Lea Counties, for $17.2 million. That record lasted only one month.

Last week, the state accepted bids from oil companies totaling $19.5 million for an additional 9,600 acres of drilling rights. All newly available oil leases will are expected to be gobbled up by August. Much of the state's money from the leases is earmarked for a state fund that pays out a prescribed amount of money every year to public schools, universities and other beneficiaries. "It's been a nice shot in the arm for education right when we need it," Public Lands Commissioner Ray Powell told The Albuquerque Journal. Although the boom isn't expected to last, it's the latest sign of an uptick in New Mexico oil production despite ongoing debate over the state's environmental regulations. Oil production in New Mexico during the just-ended fiscal year had increased by more than 4 percent. Every $1 increase in crude oil prices generates $4 million in revenue for state coffers over the course of a year. Read full story here: News New Mexico

Oil and Gas Still Paying the Bills in NM