By: Missi Currier

With the 2025 New Mexico legislative session now behind us, it is crucial to address a growing concern that threatens the economic stability of our state. The recent push to impose higher taxes on the oil and gas industry while simultaneously relying on it to fund essential programs is a contradictory and unsustainable approach. Legislators must recognize that they cannot have it both ways.

The oil and gas industry has been the backbone of New Mexico’s economy for decades, contributing nearly half of the state’s budget. The industry funds critical programs such as bills like SB48 and SB49, which aim to improve the quality of life for all New Mexicans through $360 million in investment throughout the state, funded by oil and gas revenues. However, introducing new taxes on this industry, as seen in the proposed Oil and Gas Equalization Tax, threatened to undermine its ability to continue providing this vital support.

Higher taxes on the oil and gas industry will inevitably lead to reduced investment, job losses, and stifled economic growth. This, in turn, will diminish the industry’s capacity to generate the revenue needed to fund essential programs. It is a short-sighted strategy that jeopardizes the very programs legislators seek to support.

Instead of continually targeting the oil and gas industry for additional revenue, it is time for our legislators to focus and act on diversifying New Mexico’s economy. The Economic Development Department’s 2025 strategic plan outlines several promising sectors that can drive future growth, including renewable energy, technology, and tourism. By investing in these sectors, we can create a more resilient and diversified economy that is less dependent on a single industry.

Diversification is not just a buzzword; it is a necessity for the long-term prosperity of our state. By fostering growth in new industries, we can create more high-quality jobs, attract new businesses, and ensure an increased revenue stream for essential programs. This approach will not only benefit our economy but also provide a more sustainable future for all New Mexicans. Our state can and should have a multitude of successful industries outside of oil and gas and mining, agriculture, and tourism.

Let me be clear –the oil and gas industry is not holding New Mexico back. New Mexico’s business climate is what continues to hurt our state’s potential to grow.

New Mexico legislators must recognize the importance of the oil and gas industry and the critical role it plays in funding our state’s budget. Imposing higher taxes on this industry while expecting it to continue supporting essential programs is a flawed strategy. Instead, we must prioritize economic diversification and a good start would be to invest in the sectors outlined in the Economic Development Department’s 2025 strategic plan. By doing so, we can build a stronger, more resilient economy that benefits all New Mexicans.

Missi Currier President and CEO New Mexico Oil & Gas Association