A large amount of extra revenue awaits Eddy County government based on tax collections for May of 2024, according to the Eddy County Finance Department.

The County collected $7.2 million in oil and gas tax revenue collections in May based on business activity conducted by oil and gas operators in February, said Eddy County Finance Director Breanna Shields.

She said more than 23 million barrels of oil were produced in Eddy County and the West Texas Intermediate (WTI) Sweet Crude Oil price was around $75 a barrel.

WTI is considered the U.S. benchmark for oil prices, noted the Charles Schwab investment website.

When the 2024 fiscal year budget was written last year, Eddy County projected final oil and gas tax collections at $52 million.

Through May the County collected $97 million in oil and gas revenues for fiscal year 2024.

At the end of the 2023 fiscal year Eddy County collected $113 million in oil and gas taxes, read Eddy County Finance records.

June’s figures have yet to be released and will reflect March oil and gas production in Eddy County.

WTI prices in March varied from $78.53 to $84.39 per barrel, per information from the U.S. Energy Information Administration (EIA).

Fiscal years in Eddy County start on July 1 and end June 30.

Through May, the County’s unemployment rate was under 3%, according to data from the New Mexico Department of Workforce Solutions (NMDWS).

NMDWS defined oil and gas operations as part of mining extraction in New Mexico. Through March Eddy County had 284 fossil fuel operations with 5,903 employees, per state figures.

The average weekly wage for Eddy County’s mining industry was $1,977, noted NMDWS.

The EIA predicted crude oil production in the Permian Basin to average around 6.3 million barrels per day in 2024, an increase of nearly 8% from 2023, read a June 11 news release from the federal agency.

The Permian Basin accounts for nearly half of U.S. crude oil production and EIA expected increased production in the Permian and other regions to drive production to successive records in 2024 and 2025, according to the release.

EIA expanded its Short-Term Energy Outlook (STEO) forecasts to include regional trends in the primary oil and natural gas production regions in the United States—Appalachia, Bakken, Eagle Ford, Haynesville, and Permian.

“Incorporating regional forecasts of oil and natural gas production helps us tell a more comprehensive story of hydrocarbon production trends in the United States,” said EIA Administrator Joe DeCarolis in the news release. “Now our forecasts clearly show the important regional relationship of oil and natural gas production.”

Sales tax collections exceed 2023

Eddy County broke gross receipts tax (GRTs) collections from the previous fiscal through May, Shields said.

The County collected $5.8 million in GRTs for May of 2024 with a total of $62 million total in sales tax revenue, noted Eddy County Financial Department records.

Shields said May’s figures were more than $10 million collected for the same time frame in 2023. Eddy County budgeted $34 million in collected GRTs at the end of June 2024.

Tax collections varied throughout the year between $5 million and $6 million, read county financial statements.