The New Mexico Oil and Gas Association (NMOGA) released a new report last week showing that New Mexico’s oil and natural gas industry supported 134,000 in-state jobs while adding $16.6 billion to New Mexico’s economy in 2018.
According to the analysis, the industry accounted for 12% of statewide employment and 16% of the state’s economy.
The report was prepared by the New Mexico Tax Research Institute and was presented virtually to a meeting of the New Mexico Legislative Finance Committee.
The industry’s influence spreads throughout the state, not just in oilfield counties, according to the report.
NMOGA Executive Director Ryan Flynn said, “The oil and natural gas industry supports jobs and local economies in every corner of our state, and this report underscores the employment ripple effect inherent in this industry when it is allowed to be successful.”
The report highlights the oil and gas industry’s direct economic activity in New Mexico as well as the indirect and induced jobs and economic value added to the economy through its purchases, employment, and payments to state and local governments.
The 134,000 jobs supported by industry provided $7.6 billion in labor income to New Mexicans, accounting for 14% of income earned statewide and some level of employment in each of New Mexico’s 33 counties. In the public sector, one of every seven government jobs was also supported by industry, mostly in state and local government.
“New Mexico’s economic outlook and future generations depend on continuing policies that prioritize the development of our abundant energy resources, just as we have safely done for the past several years,” Flynn continued. “The result is a stronger, more resilient New Mexico for everyone.”
The report follows a recent analysis by NMOGA and the American Petroleum Institute warning of negative consequences for New Mexico if a ban on federal leasing and public lands were to take effect. New Mexico is projected to be among the states hardest hit, losing over 62,000 jobs by 2022.
“Smart, sound policy is critical to the success of our industry and has a clear impact on other sectors of the economy supported by oil and natural gas,” added Flynn. “The fact that industry supports one of every seven government jobs shows that New Mexico just can’t afford misguided proposals like a federal leasing ban that put teachers, first responders, and health care workers on the chopping block.”
NMOGA provided support and funding for this report to the New Mexico Tax Research Institute. View the full report and methodology at NMOGA.org/EconomicActivityReport.
