Associated Press: “New Mexico, the No. 2 Oil-Producing US State, Braces for Possible End to Income Bonanza”
A widely syndicated story that discusses New Mexico’s changing economic landscape cites RFF research and quotes Fellow Daniel Raimi.
Permian Basin production and revenue would be lower in the future if countries “make good” on their promises as part of the Paris Agreement, said Daniel Raimi, a fellow at the Washington-based nonpartisan economics group Resources for the Future, which does not advocate on energy policies. In 2015, countries at the United Nations climate conference signed onto the agreement to limit the average warming across the globe to “well below” 2 degrees Celsius (3.6 F) and pursue efforts to cap warming to 1.5 degrees (2.7 F).
“It really hinges a lot on the different policies that governments around the world implement,” Raimi said.
About half of the New Mexico’s general fund revenue can be traced to the oil and natural gas sector through an array of taxes and royalties on petroleum production that takes place largely on public lands — and distributions that flow from the state’s $28 billion land grant permanent fund for education, which is nurtured by oil income and investment earnings.
