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NM sees big jump in federal oil and gas revenues

A drilling rig operates near a pumpjack in Eddy County. (Photo courtesy of NM Oil & Gas Association)

New Mexico reaped $455 million from energy and mineral production on federal and Indian lands in fiscal year 2017, up $86.5 million from the previous year’s total, according to the U.S. Department of Interior.

The jump marked the largest increase of any state in the nation.

“Under President Trump’s American Energy Dominance agenda, we’ve increased energy funds by a billion dollars nationally, and by $86.5 million in New Mexico in our first year alone,” said Interior Secretary Ryan Zinke in a statement today. ” That money goes right back to communities for things like public works projects, educational improvements, conservation and parks, and infrastructure upgrades.”

The increase in revenues is being driven in large part by higher oil prices, which have jumped from $45 per barrel in September 2016 and were $53 per barrel in September of this year. Higher prices spur more production.

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The Interior Department said the increase in federal revenues paid to states nationwide – which also includes revenues from offshore drilling on federal leases  – is “primarily attributed to a larger number of lease sales totaling higher acreage, efforts to streamline permitting and reduce regulatory burdens, and higher oil and gas prices experienced during the year as the economy and exports have continued to expand.”

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