New Mexico Economy: Oil and Gas Continues to Drive It

Oil and gas in New Mexico continued to make up a large portion of the state economy. This includes their bottom line. Most of the industry is confined to a rural, two-county area in the state’s southeast corner.

Operations in Eddy and Lea counties in southeast New Mexico’s Permian Basin oilfields accounted for almost a quarter of the state’s tax revenue. This is per recent data from the New Mexico Economic Development Department.

Those numbers reflected tax revenue from matched taxable gross receipts (MTGR) for the third quarter of Fiscal Year 2022 – January, February and March.

MTGR is a metric used to convey sales tax returns combined with associated economic activity, matching each tax payment with receipts reported by taxpayers.

Together, the two counties accounted for 24 percent of the state’s MTGR. There is a 15 percent increase since the last quarter. This is despite only containing a combined 6.5 percent of the state’s population, per the 2020 U.S. Census.

Oil and gas as and industry led the state in growth at 92 percent. This is what the records show following by arts and entertainment at 77 percent and manufacturing at 42 percent.

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Source: Carlsbad Current-Argus

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