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Oil and gas deliver revenues to New Mexico despite pandemic

Laura Paskus, New Mexico In Depth
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In northwestern New Mexico, energy companies drill for oil within shale deposits. Since this photo was taken in late 2014, exploration there has slowed.

ALBUQUERQUE, N.M. (AP) — Oil and gas development infused $2.8 billion into New Mexico coffers during the 2020 fiscal year despite a global price war and plummeting demand due to the coronavirus pandemic.

The New Mexico Oil and Gas Association on Monday released a report on the industry's economic impact. It shows that record production helped push revenues to their second-highest total ever reported.

The industry group says oil and gas revenues accounted for one-third of total state spending. Much of that went toward education. Federal mineral leasing was the single largest source of oil and gas revenue for the state at more than $800 million.