The New Mexico Oil and Gas Association released a new report showing that New Mexico’s oil and natural gas industry supported 134,000 in-state jobs and added $16.6 billion to New Mexico’s economy in 2018.
According to the analysis, the industry accounted for 12% of statewide employment and 16% of the state’s economy. The report was prepared by the New Mexico Tax Research Institute and was presented virtually to a meeting of the New Mexico Legislative Finance Committee.
“The oil and natural gas industry supports jobs and local economies in every corner of our state, and this report underscores the employment ripple effect inherent in this industry when it is allowed to be successful,” said NMOGA Executive Director Ryan Flynn.
The report highlights the oil and gas industry’s direct economic activity in New Mexico as well as the indirect and induced jobs and economic value added to the economy through its purchases, employment, and payments to state and local governments.
The 134,000 jobs supported by industry provided $7.6 billion in labor income to New Mexicans, accounting for 14% of income earned statewide and some level of employment in each of New Mexico’s 33 counties. In the public sector, one of every seven government jobs was also supported by industry, mostly in state and local government.
This report follows a recent analysis by NMOGA and the American Petroleum Institute warning of negative consequences for New Mexico if a ban on federal leasing and public lands were to take effect. New Mexico is projected to be among the states hardest hit, losing over 62,000 jobs by 2022.
NMOGA provided support and funding for this report to the New Mexico Tax Research Institute. View the full report and methodology at NMOGA.org/EconomicActivityReport.
Source: NMOGA
