Fossil Fuels in New Mexico

New Mexico is a national leader in fossil fuel production, especially in oil and natural gas. While these industries contribute significantly to the state’s economy and public funding, they also present environmental and economic volatility challenges. This section breaks down the current data and trends for oil, gas, and produced water in the state.

Oil

  • New Mexico is the 2nd largest oil producer in the U.S.

  • Oil revenues provided 34.5% of state revenue in 2023

  • Crude oil production grew from ~100 million barrels in 2010 to ~745 million barrels in 2024

  • The Permian Basin in southeastern NM is the most prolific production area

  • Only 6% of oil is refined in-state (down from 52% in 2000)

 

Download Oil Data

Source: U.S. Energy Information Administration (EIA) – modified from the EIA State Energy Data System (SEDS)

ADD GRAPH OIL PRODUCTION

Natural Gas

  • NM is among the Top 10 natural gas producing states
  • Major basins: San Juan (declining) and Permian (growing)
  • Coalbed methane (CBM) production second only to Colorado
  • Natural gas is critical for electricity, industry, and heating
  • Natural gas supports grid reliability during renewables expansion.
Download Natural Gas Data

Source: U.S. Energy Information Administration (EIA) – modified from the EIA State Energy Data System (SEDS)

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