Oil and gas led land use in New Mexico in 2022 as the state looks to diversify

Power generation has been a leading use of state-owned public land in New Mexico this year, with growth in the fossil fuel and renewable energy sectors.

The New Mexico State Land Office saw increases in revenue from both forms of energy as New Mexico maintained its position as the second largest crude oil producer in the US and concentrated its operations in the Permian Basin in the state’s southeastern region.

However, state leaders also sought to diversify New Mexico’s energy supply by spurring the development of renewable energies such as wind and solar power and hoped to expand the use of state lands beyond the state’s largest oil and gas industry, which accounts for about a third of its budgets.

More:Energy companies benefit from Permian Basin oil and gas growth as markets recover

“Diversification is one of the key tenets of my administration, and we are beginning to see excellent results from these efforts,” said Stephanie Garcia Richard, New Mexico Public Lands Commissioner.

Here are the New Mexico State Land Office’s greatest accomplishments in 2022, a year of growth in the energy sectors but also of a changing energy market.

Oil and gas revenues break records for New Mexico

The Land Office generated approximately $2 billion in revenue in fiscal 2022 from fossil fuel production and royalties paid on State Trust properties that the Office leases to oil and gas companies.

More:550-mile power line connects wind energy in New Mexico to western states. Work will start in 2023

The agency oversaw 6,800 oil and gas leases in fiscal 2022, records show, along with 255 mineral leases and 556 freshwater and saltwater disposal easements, totaling about 2.3 million acres of state trust land.