New Mexico Breaks Oil Production Record

New Mexico broke an oil production record in May, pumping an average of 1.22 million barrels daily as the Permian Basin returned to output growth again.

Bloomberg reports, citing government data, that New Mexico produced more oil than North Dakota, and it did so for three months in a row to May.

New Mexico also recently reported record oil and revenues for the fiscal year 2021. According to the New Mexico State Land Office, it had received some $1.26 billion in total revenues in the latest fiscal year, of which $1.25 billion or 96 percent came from oil and gas royalties.

Since the start of this year, revenues have strengthened further, averaging some $100 million per month and rising to a record $135 million for June, according to preliminary data.

State Land Commissioner Stephanie Garcia Richard said, as quoted by the Carlsbad Current-Argus, that oil and gas production in New Mexico rebounded quickly thanks to relief granted by the state. The relief consisted of drillers keeping their leases despite well closure during the worst of the demand crisis last year.

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Source: Oil Price

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