On March 15, 2021, New Mexico’s governor, Michelle Lujan Grisham (D), sent a letter warning President Joe Biden that his policies limiting oil and gas production will have widespread adverse effects on New Mexico.[1][2] In January, the Biden administration halted federal oil and gas leases pending a review of the program. According to the letter, more than 60% of New Mexico’s oil and gas production happens on federal land and the state will be disproportionately impacted by Biden’s policies compared to states like Texas or Oklahoma which have more private land available for development.

Oil and gas revenues make up about 32% of general fund revenue in the state. These revenues fund a wide range of state priorities, including public schools, infrastructure projects, and environmental initiatives. A “relatively modest” 10% drop in oil and gas production would cost the state $709 million in revenues by the end of Biden’s first term which could hinder New Mexico’s ability to achieve major goals, the letter says. The letter also highlights New Mexico’s commitment to increasing environmental regulations on oil and gas development, such as methane standards. Gov. Grisham notes that other states like Texas do not have the same robust methane restrictions which could mean high emissions if drillers move due to Biden’s policies. In the letter, Gov. Grisham asks for a seat at the table regarding possible changes to federal fossil fuel programs.

[1] https://www.eenews.net/assets/2021/03/16/document_ew_03.pdf

[2]https://www.eenews.net/energywire/2021/03/16/stories/1063727539?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire