Economic Impact of the Mineral Industry in New Mexico, 1999
Virginia T. McLemore, Senior Economic Geologist
New Mexico's energy and mineral wealth is one of the richest endowments of any state in the United States. For example, in 1999 New Mexico rankedin production
- 2nd in the nation in natural gas production
(1.66 trillion cubic feet, $3.5 billion ) - 5th in crude oil (65 million barrels, $1.1 billion)
- 12th in coal (29 million tons, $632 million)
- 3rd in copper (433 million pounds, $315 million)
- 1st in potash (1.34 million tons, $235 million)
- agregate (13 million tons, $60.6 million)
- 6th molybdenum (2.8 million pounds, $12.8 million)
- 10th gold (18,263 ounces, $5 million)
- 1st in zeolite and perlite
- 2nd in carbon dioxide (145.8 billion cubic feet)
- 4th in pumice and mica
In reserves
- 2nd in reserves in natural gas (15.4 trillion cubic feet)
- 4th in crude oil (718 million bbls)
- 2nd in uranium 15 million tons ore at 0.277% U3O8
(84 million lbs U3O8) at $30/lb - 3rd in coal 1.4 billion tons of recoverable reserves
(1998 figures) - potash (>522 million tons)
- carbon dioxide (16 trillion feet)
Direct state revenues from petroleum production (including severance, resources excise, conservation, school, and ad valorem taxes plus lease royalties, rentals and bonuses) were $798 million in 1999. State revenues from other mineral commodities were
- coal: $34 million
- potash: $1.6 million
- copper: $1.8 million
- 7 other commodities: $1.9 million
In a state with only 1.6 million people and a General Fund budget of $3.0 billion, it is estimated that these endowments save the average New Mexico taxpayer about $600 per year in taxes. The extractive industries also provided property and corporate income taxes while their 19,500 direct employees contributed personal income taxes from approximately $600 million in earnings. Direct employment by industry in 1999 was
- petroleum: 10,000
- copper: 2,255
- potash: 1,031
- coal: 1,838
- remaining producers: approximately 1,900
The multiplier effect of dispersal of these wages through local economies increases their impact many fold. A healthy mineral industry is vitally important to the economy of New Mexico and to maintenance of public education and services.
References
- Energy, Minerals and Natural Resource Department, 2000, New Mexico's Natural Resources; Data and statistics for 1999:
- Energy, Minerals and Natural Resource Department, Annual Report, 68 p. U. S. Department of Energy, 2000, Uranium industry annual 1999: Energy Information Administration, Report DOE/EIA-0478(99), 81 pp.
WEB sites for more information:
New Mexico Bureau of Geology & Mineral Resources
New Mexico Institute of Mining & Technology
801 Leroy Place
Socorro, NM 87801-4796
information: (575) 835-5420
fax: (575) 835-6333
http://geoinfo.nmt.edu
The New Mexico Bureau of Geology & Mineral Resources is a research and service division of:
