New Mexico oil association president: Biden’s energy policies a ‘blockade’ on state economy
(The Center Square) – New Mexico Oil & Gas Association President Ryan Flynn slammed President Joe Biden’s new moratorium on new oil and gas leases on federal lands, labeling it a “blockade” on New Mexico’s economy.
In a statement, Flynn said New Mexico is impacted more than any other state in the U.S. by Biden’s order.
“The message to thousands of New Mexico children, teachers, and first responders who rely on our oil and natural gas industry for basic support is absolutely clear: New Mexicans lose, and foreign imports win,” he said. “A moratorium all but guarantees that unemployment will rise, state revenue will fall, and our economy will come to a halt.”
The oil and gas industry is the greatest economic contributor to the state of New Mexico, supporting more than 134,000 jobs and $16.6 billion in annual economic activity, the association said, which represents more than 1,000 oil and natural gas companies and individuals in the state. Taxes and royalties from the industry account for 33 percent of the state of New Mexico’s annual budget, including almost $1.4 billion for public schools.
A September 2020 analysis by OnLocation also warned of severe negative consequences for New Mexico if a ban on federal leasing were to take effect.
New Mexico, which accounts for 57 percent of federal onshore oil production and 31 percent of onshore natural gas production, is projected to be among the states hardest hit, losing more than 62,000 jobs by 2022. There’s $1.1 billion in revenue at risk, the analysis said, with oil production decreasing by 47 percent and the production of gas dropping 46 percent in the state.
OnLocation used the EIA’s National Energy Modeling System, which is used to produce their annual energy outlook. Nationwide, the order’s impact could be a $700 billion decline in the U.S. GDP and the loss of 1 million jobs.
“President Biden’s newest order is a gift to countries like China, Russia and Saudi Arabia at the expense of New Mexico’s working families,” said Larry Behrens, western states director of Power The Future, a nonprofit that supports the nation’s oil and gas industry workers and seeks dialogue between the industry and environmentalists who are making a move toward renewable energy.
“This order proves New Mexico’s energy workers are under attack from an out-of-touch administration in Washington. President Biden isn’t wasting any time destroying our state’s energy jobs and all we can get from our elected administration in Santa Fe is vague statements in response,” Behrens said, referring to Democratic Gov. Michelle Lujan Grisham and Democratic majorities in the legislature.
The answer, he said, would be for the state to push for an exemption from Biden’s order.
“Energy jobs in New Mexico are at the lowest point in over a decade,” Behrens said. “That’s why it’s even more critical that New Mexico’s leaders pursue an exemption from Biden’s orders immediately.”
Communities likely to be hurt in New Mexico include the oil dependent towns of Carlsbad, Farmington and Hobbs, Flynn said.
And while the association supports the Biden administration’s efforts to reduce emissions and fight climate change, he added, progress won’t be made by sacrificing those New Mexico communities.
“New Mexicans are eager to work, and our country and state is best served by keeping their jobs here at home, rather than outsourcing them abroad,” Flynn said.
Disclaimer: This content is distributed by The Center Square
