Analyst Bernadette Johnson of Enverus told members of the New Mexico’s legislative finance committee last week that she expects natural gas prices to increase in 2021, but she said demand and prices for crude oil will take longer to recover. She said Nov. 19 that the industry in New Mexico has lost 7,400 jobs since February. Wells drilling for new petroleum in New Mexico’s portion of Permian Basin declined to 134 in September – down from 589 wells in September 2019. Associated Press said the state relies on income from the oil and gas industry for more than one quarter of its annual general fund budget.
Gov. Michelle Lujan Grisham, who was expected to call a special session of the legislature this week to address economic issues, directed state agencies to reduce spending 5 percent for the fiscal year that begins in July 2021.