New Mexico is number one in the Intermountain West when it comes to oil and gas production, according to a new report, and being on top comes with certain challenges. Report author Ben Alexander of Headwaters Economics says the state has surpassed Wyoming in production, and is doing a pretty good job of capturing that energy revenue. However, he says, Santa Fe seems to be relying too much on those oil and gas dollars, contributing to the state's current big budget deficit. He says one other finding that came as a surprise was that New Mexico is at the bottom of the heap in the Rockies when it comes to returning some of that energy revenue to the local governments where energy development is actually taking place. "That can mean that local jurisdictions can have a very difficult time handling the impacts on basic government services, and also providing the infrastructure and sustaining the infrastructure, particularly roads and bridges." The study goes on to say that policy makers should look for ways to lessen the state's dependence on volatile oil and gas revenue to fund essential public services...Public News Service
The study also looks at Otero Mesa. Go here for the study.
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