New Mexico Economic Development and Revenue Strategy
The Economic and Fiscal Impact of the Oil & Gas Sector
Absent robust economic and population growth, State revenue has become more
dependent on the oil and gas sector.
•
Employment in the mining, quarrying, and oil and gas extraction sector represented less
than 2.5 percent of direct employment in the State for 2021, ranking 14th out of the 20
sectors examined by the U.S. Bureau of Labor Statistics.
• Other sectors actually drive employment in New Mexico, with nearly 40 percent of jobs
contributed by the top three sectors: 17.8 percent in health care & social assistance,
11.4 percent in retail trade, and 10.3 percent in accommodation & food services.
◆ New Mexico's State Budget depends on oil and gas for approximately one-third of its
general revenue, meaning State policymakers must ride the "roller-coaster" of the ups.
and downs of oil and gas prices and production.
◆ The recent surge in oil and gas revenue is largely the result of the timing of two once-in-a-
generation events - a rebound in demand as the COVID-19 pandemic eases and a
restriction in supply due to the Russian invasion of the Ukraine.
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