Economic Impact

Fact Sheets

Funding 16.76% of the state’s revenue through taxes.

New Mexico’s natural gas and oil industry supports vital state services and infrastructure through taxes:

  • Oil and gas severance tax
  • Emergency school tax
  • Oil and gas conservation tax
  • Gas processors tax
  • Production ad valorem tax
  • Equipment ad valorem tax

These taxes are in lieu of property taxes in counties where natural gas and oil extraction occurs.

New Mexico's natural gas and oil industry provided nearly $800 million for essential state services in 2010.

A portion of the tax revenues from natural gas and oil go to the Land Grant Permanent Fund, whose beneficiaries include:

  • NM public schools
  • Seven NM universities
  • The NM school for the deaf, blind and visually impaired
  • Three major NM hospitals
  • Building repair, penitentiary, and water projects

The land office generated some $355 million in revenues from leases, royalties and land sales in 2010. Between 2003 and 2008, some $2.26 billion has been generated for public schools. Of total revenues, 94 percent come from natural gas and oil royalties and leases.

*Source: State Land Office Annual Report FY2008.

More than $1.53 billion is generated directly by New Mexico’s natural gas and oil industry.

When combined with goods and services contracted with other sectors, the economic impact totals more than $3.6 billion annually.

Natural gas and oil development, extraction and production are very capital intensive – requiring many other services to do business. As a result, each industry job generates 3.95 additional jobs in New Mexico..

Nearly 26,500 New Mexico jobs depend on the natural gas and oil industry.

  • 12,007 individuals are directly employed by the industry
  • 4,865 jobs are indirectly supported by industry activity
  • 9,501 jobs are generated (induced) as a result of activity

Economic Impact Handout