KRWG

Oil and Natural Gas Accounted for $18.8 Billion, 17.9% of NM Economy in 2019

Jul 20, 2021

Commentary: The New Mexico Oil and Gas Association (NMOGA) and the American Petroleum Institute (API) today released a new analysis of the oil and natural gas industry’s vast economic impact on New Mexico’s economy and its importance to the state’s post-pandemic recovery. The study, conducted by PricewaterhouseCoopers (PwC) and based on the latest government data available, shows that New Mexico’s oil and natural gas industry added $18.8 billion to the state’s gross domestic product in 2019. Representing 17.9 percent of the state’s economy, New Mexico ranked among the highest states for total economic contributions by the oil and natural gas industry.

“Oil and natural gas are a big part of New Mexico’s economy and will continue to play a leading role in driving our state from recovery to prosperity,” said NMOGA Chairman Leland Gould. “New Mexico has enormous oil and natural gas potential, and we should continue to make this state a magnet for capital investment and job creation by prioritizing the development of these resources right here in our own backyard. People in every community and corner in New Mexico depend on oil and natural gas for daily energy needs and basic government services, and we’re ready to do our jobs to deliver these critical resources.”

“Our industry is crucial to growing New Mexico’s post-pandemic economy, and America’s future is stronger when we are leading the world in energy production,” API President and CEO Mike Sommers said. “America’s natural gas and oil industry has a footprint nationwide, supporting hundreds of thousands of jobs from coast to coast, even in states with little to no production. This study reinforces that the pace and strength of our nation’s economic recovery will depend on policies that support, rather than hinder, American energy development.”

As economic activity, travel patterns and consumption continue to grow during the post-pandemic recovery, the U.S. Energy Information Administration expects global oil and liquid fuels consumption to surpass 2019 levels in 2022. The PwC report, commissioned by API, demonstrates how the oil and natural gas industry—in New Mexico in particular—is critical to economic revitalization and opportunities for job creation. According to the findings, in 2019, the industry directly and indirectly:

  • Contributed $18.8 billion to New Mexico’s gross domestic product, 17.9 percent to the state’s total.
  • Supported more than 46,000 direct jobs.
  • Generated an additional 1.5 jobs elsewhere in New Mexico’s economy for each direct job in the state’s oil and natural gas industry.

In 2019, the U.S. led the world in oil and natural gas production and the benefits of that leadership permeated throughout non-producing and producing states alike. At the national level in 2019, the oil and natural gas industry:

  • Supported nearly $1.7 trillion to U.S. gross domestic product, accounting for 7.9 percent of the national total.
  • Supported more than 2.5 million direct jobs.
  • Generated an additional 3.5 jobs elsewhere in the U.S. economy for each direct job in the U.S. oil and natural gas industry.

Click here for more information on the economic impact analysis.

The New Mexico Oil & Gas Association (NMOGA) is a coalition of oil and natural gas companies, individuals, and stakeholders dedicated to promoting the safe and environmentally responsible development of oil and natural gas resources in New Mexico. Representing over 1,000 members, NMOGA works with elected officials, community leaders, industry experts, and the general public, to advocate for responsible oil and natural gas policies and increase public understanding of industry operations and contributions to the state.

API represents all segments of America’s natural gas and oil industry, which supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.