Dec. 8—The New Mexico State Land Office, bringing in its second-highest revenue ever, announced this week that it earned $2.56 billion in fiscal year 2024.
Unsurprisingly, most of that money came from the oil and gas industry, although fossil fuels are down significantly from last fiscal year – the only time the Land Registry has earned higher revenues. Revenues from renewable energy are still less than 1% of total revenues.
The $2.56 billion will go to state beneficiaries, with public schools receiving the most.
“We are proud to once again bring in billions from activities on state lands to make a long-term difference for our children,” Land Commissioner Stephanie Garcia Richard said in a statement.
Oil and gas accounted for about 94% of Stand Land Office’s total revenue in FY24. About $2.3 billion came from royalties, and another $97 million came from land leases. That’s down from FY23, when the oil and gas industry generated $2.66 billion, about 97% of total land office revenues in that fiscal year.
The State Land Office highlighted that in FY24, $214.5 million came from sources other than oil and gas – a record amount.
“We have strived to diversify our revenue-generating activities every step of the way, and we are starting to see real results with our highest revenues from sources other than oil and gas rights ever,” said Garcia Richard. “These revenues keep our public institutions running while keeping money in the pockets of New Mexico taxpayers.”
Yet the money coming in from renewable energy continues to account for less than 1% of total revenue, as was also the case last financial year.
In FY24, approximately 0.17% of total revenue came from renewable energy, including $3.2 million from wind energy and approximately $904,500 from solar energy – equating to $4.4 million. It compares to FY23, when solar and wind rentals also brought in about $4.4 million.
Renewable energy revenues will never match oil and gas, Garcia Richard has long said, telling the Journal via email this week that clean energy revenues will likely never surpass oil and gas royalties.
“But we know oil is a finite resource. Once a producer pulls oil out of the ground, it’s gone forever,” Garcia Richard said. “Understanding that reality, we need to get revenue from as many sources as possible so that money continues to flow into our schools once the sources start to dry up.”
That’s also why she wants higher royalty rates for the oil and gas industry, she said — to generate more revenue while oil production is still at high levels.
