New Mexico gets $1.2 billion in oil revenue as State enforcement ramps up

Oil production on New Mexico state land led to a record $1.25 billion in revenue in the last fiscal year.

The New Mexico State Land Office reported Fiscal Year 2021 revenue estimates showed $1.2 billion or 96 percent of those funds came from oil and gas royalties.

Since January, when the oil and gas industry began recovering from a downturn brought on by the COVID-19 pandemic, monthly royalty payments were at least $100 million, with June’s early projection at $135 million – a new record.

More:New Mexico hopes for oil and gas windfall as nation recovers from COVID-19

New Mexico State Land Commissioner Stephanie Garcia Richard said relief the Office granted to oil and gas operators in allowing them to idle or shut in wells without forfeiting leases during the pandemic meant they were able to resume production when the market recovered.