New Mexico’s oil and gas industry could take at least three more years to fully recover from a historic collapse brought on by the COVID-19 pandemic and subsequent shrinking fuel demands.
Bernadette Johnson, vice president of market intelligence at Enverus said the market for crude oil likely won’t recover to pre-pandemic levels until 2023 when the price per barrel of West Texas Intermediate – a grade of crude used as a domestic pricing benchmark – was between $50 and $60 per barrel.
In April, the price dropped to below $0 per barrel but by July had recovered to about $40 per barrel.
But Johnson said it was unlikely the price would continue to climb quickly, as fuel demands were slow to increase during the ongoing pandemic.
She presented predictions for the oil and gas markets and how New Mexico could be impacted during a Wednesday meeting with New Mexico Legislative Finance Committee held in Cloudcroft.