Headlines from the Current Argus and the Santa Fe New Mexican Last Week
Make no mistake. New Mexico is a petrostate, and like other petrostates around the world, New Mexico suffers from the "resource curse," in which the presence of valuable resources stunts the diversification of the economy, produces significant economic inequality, and results in weak state institutions that are susceptible to corruption and less responsive to the people. On top of these systemic weaknesses, New Mexico's entire economy is uniquely vulnerable to economic crisis based on international fossil fuel prices.
Last week the Current Argus reported that New Mexico's oil production exceeds Qatar, Libya, Algeria and Venezuela. That our humble state ranks 14th in the world in oil production, a "world class" petrostate. But when the oil and gas companies tout the extraordinary revenue that they have brought into New Mexico, remember this:
1. The vast majority of extracted wealth is going to those fossil fuel companies and their shareholders, which are headquartered outside the state. New Mexico earns oil and gas revenue primarily from royalty payments, and at a rate lower than Texas. When Senators Tallman, Sariñana and Pope tried to advance an increase in royalty rates on future oil wells, industry lobbyists made sure that modest change went nowhere. Meanwhile those company's are raking in hundreds of billions.
2. The revenue we do collect is not being invested wisely to lift all boats, diversify our economy and prepare for the energy transition. Instead, poverty (18.4%), poor educational outcomes (50th in the nation), and basic infrastructure critical to climate resilience are neglected in favor of short term political expedience. New Mexico has the 2nd highest solar potential in the nation, and 11th highest wind power potential, but any real effort to diversify revenues and reduce emissions by expanding public investment into that sector has been defeated. Instead greenwashed false solutions that benefit the oil and gas industry, like hydrogen and "produced water" reuse, have been peddled as the greatest thing since sliced bread, and slated for vast amounts of public subsidies.
3. The true cost of fossil fuel exploitation in New Mexico is vastly higher than any oil and gas revenues the state is receiving. The true cost is being paid by the people of Las Vegas, Farmington and Grants whose homes were flooded this week, the people of Ruidoso whose homes, businesses, neighbors and beloved horses and family pets burned in a fire blazing out of control, and the people on I-25 who were hospitalized when a 200 mile wall of dust, a haboob visible from space and larger than any seen before in New Mexico, blanketed the state causing an 18 car pileup and stopping traffic. The true cost is being paid by every living being, large and small, who are suffering and dying in the extreme heat while oil and gas shareholders sip margaritas poolside.
The harms from the exponential growth in extraction that has been allowed in New Mexico extend far beyond our own borders. The Washington Post headline last week read "Billions of people just felt the deadly intensity of climate-fueled heat waves," and began "Dozens of bodies were discovered in Delhi during a two-day stretch this week when even sundown brought no relief from sweltering heat and humidity. Tourists died or went missing as the mercury surged in Greece. Hundreds of pilgrims perished before they could reach Islam’s holiest site, struck down by temperatures as high as 125 degrees."
Meanwhile oil and gas industry executives brag about the $15 billion in revenues they generated for New Mexico, and our political leaders look away while they despoil all that is beautiful and truly valuable - air, water, land and the future we dream for our children and grandchildren.
Today the CEOs and Executives of Shell, Chevron, the American Petroleum Institute and Avangrid (Yes, they're back!) are leading an energy summit at the Eldorado for $400 per person at which they will lead presentations such as the "Toyota-Chevron Alliance for a More Sustainable Tomorrow" and Shell's President will lead a fireside chat called "Navigating the Energy Transition: Balancing Security, Sustainability, and Equitability." I'm guessing that fireside will be fossil fueled.
The keynote speaker is one Ben Ray Lujan, and the party will begin with a Welcome Reception at the Governor's mansion. Yes, we are a petrostate, with all the trappings.
All this while New Mexico burns!
We can despair, or we can fight. Now is the time to show up for all that you love.
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