A new report analyzes the economic and fiscal contribution of the oil and natural gas industries in New Mexico along with a case study of proposed energy development on Otero Mesa in Otero County that asks whether potential drilling there would create more benefits than it would foreclose. The study then concludes with five public policy options. “Jobs and personal income from industries associated with the extraction of fossil fuels are a small part of New Mexico’s economy,” said Ben Alexander, the report’s lead author. “Even at the height of the recent energy surge, these industries accounted for two percent of all employment and three percent of total personal income in the state.” However, oil and natural gas revenue is a major revenue source for New Mexico and accounted for 18 percent of all state and local revenue in 2007. “While the state does a good job of capturing value from oil and natural gas resources, New Mexico is exposed to significant volatility in energy revenue,” according to Alexander. “The state also returns the lowest proportion of oil and natural gas revenue to local government in the Intermountain West.” The analysis by Headwaters Economics, Potential Impacts of Energy Development in New Mexico, With a Case Study of Otero County, also found that drilling proposed by the Bureau of Land Management on Otero Mesa would provide little employment and revenue—even at peak production—to either the state or county, and that energy development proceeds to the county may not cover the county’s share of infrastructure and service costs...HeadwatersEconomics
HatTip NMLeftRight
No comments:
Post a Comment