New Mexico’s Republicans are growing weary of New Mexico’s energy costs amidst the legislative session and rising gas prices throughout the U.S.
“We’re witnessing the harmful consequences of losing our energy independence,” Steve Pearce, Republican Party of New Mexico chairman and former congressman, told the Republican Party of New Mexico. “Last week, House Republicans passed HR 1 to allow the U.S. to overturn our foreign energy dependence and to offset inflated gas prices. Sadly, for New Mexicans, all three Democratic representatives voted against this bill, once again putting their elitist politics above their constituents. We can avoid an energy crisis if the Senate passes HR 1 and President Biden signs it into law. It’s time to unleash American energy, support our state’s greatest resource and keep gas affordable for hard-working New Mexicans.”
Fox Business reports that Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) recently announced that they would cut oil production by over 1 million barrels a day, causing gas prices to surge. Gas prices could rise 26 cents on average, according to Phil Flynn, a senior analyst at Price Futures Group and a Fox Business contributor.
According to the Republican Party of New Mexico, HR 1, the Lower Energy Costs Act, would lower energy costs by “unleashing American energy production, exports, infrastructure, critical minerals processing, permitting, production of American resources, and improving water quality certification and energy projects.”
On the state level, Senate Bill 26, which will automatically put excess oil and gas revenues into the Severance Tax Permanent Fund rather than the New Mexico General Fund, passed unanimously in both the House and Senate, according to Gov. Michelle Lujan Grisham's website. Putting extra revenue in the Severance Tax Permanent Fund will allow the money to appreciate in value, and hopefully be a fallback if New Mexico’s booming oil and gas revenue slumps in the future. The Severance Tax Permanent Fund is now expected to grow from $8.2 billion in 2024 to $30 billion by 2035.
Carlsbad Current Argus reports that during the New Mexico legislative session, a law to expand renewable energy development by requiring land managed by the state of New Mexico to develop renewable energy was passed as well. New Mexico is the second-highest oil-producing state in the U.S., and the resource comprises about a third of the state budget. Republicans who opposed this law stated how much more money oil and gas brought the state compared to renewable energy, which generated about $12 million in revenue for New Mexico in fiscal year 2022.