OPINION: NM can lead clean oil extraction under any political reality

When I entered the theater of COP29 — the United Nations’ 29th Conference of Parties on Climate Change — in November, I sensed uncertainty in the air.

Delegates from around the world were focused on climate solutions and looming questions about the fate of U.S. federal climate commitments under a new presidential administration. Yet amidst the unease, a resounding message emerged: subnational governments — states, counties and cities — must lead.

This idea is not new. In 2017, when the U.S. withdrew from the Paris Agreement, the Climate Alliance was born, uniting states still determined to uphold climate commitments. This time, however, the stakes are higher, and the strategy must be sharper.

The last years have shown that clean energy and climate action are good business — now we must further demonstrate their economic value. The results of the recent U.S. election make clear that economic development and innovation must lead the way.

New Mexico, a leader in clean energy and energy exporting, is uniquely positioned to answer this call. As the second-largest oil and gas producer in the U.S., our Permian Basin fuels economies far beyond our borders. As Gov. Michelle Lujan Grisham often emphasizes, New Mexico produces the cleanest barrel of oil and the cleanest volumes of gas — a distinction that offers a unique opportunity to influence global climate strategies.

As energy demand grows, and federal priorities shift toward fossil fuels, decarbonizing oil and gas production is one of the most effective ways to reduce greenhouse gas emissions. By eliminating methane leaks, implementing advanced monitoring technologies, automating reporting, and rewarding producers who exceed environmental standards, New Mexico can set a global standard. For example, European buyers of liquefied natural gas are demanding lower Scope 3 emissions, which encompass all greenhouse gases associated with a fuel’s entire life cycle.

Cleaner gas in New Mexico means cleaner liquefied natural gas abroad, positioning New Mexico as a leader in originating, and shaping, these new standards.

Policies like New Mexico’s Clean Fuel Standard exemplify this approach.

Rewarding producers who go above and beyond creates a virtuous cycle in which the cleanest fuels gain the greatest market advantage. This is good policy, and it is good business. It’s also why it’s crucial that we align economic incentives with meaningful climate action during a pro-business administration in the White House.

Make no mistake, challenges remain.

The next years will test our resolve as we face the rollback of Environmental Protection Agency rules and the threats to hugely successful programs like the Inflation Reduction Act. But even with an “anti-clean energy” federal agenda, opportunities exist. Geothermal energy, which leverages oil and gas assets and workers, has bipartisan support. Green hydrogen production and carbon capture technologies also show promise. Building out transmission infrastructure to export clean energy from New Mexico and other Western states could be a unifying initiative.

Leaving COP29, I felt a renewed clarity about New Mexico’s role in the global energy transition. We’re not abandoning from this challenge because of an election; we’re transforming it into an opportunity. By cleaning up existing energy systems, investing in innovative solutions, and proving that this model works, New Mexico can lead under any political reality. The path forward is about acting decisively with the resources, workforce and industries we already have.

If New Mexico succeeds, others will follow. The clean energy future starts here and now by addressing the present with pragmatic, scalable solutions.

The road ahead is challenging, but it’s also an opportunity for New Mexico to lead the way in redefining what’s possible for an oil and gas state in a climate-conscious world.

Travis Kellerman is senior policy advisor for Gov. Michelle Lujan Grisham.