New Mexico oil and gas lease sale nets $35 million

February 21, 2019 GMT

SANTA FE, N.M. (AP) — The State Land Office says this month’s oil and natural gas lease sale has netted more than $35 million.

Officials say that includes the largest open bid sale in the agency’s history, with numerous tracts in southeastern New Mexico closing at more than $12 million.

Most of the money generated by the State Land Office supports public education and other beneficiaries.

Land Commissioner Stephanie Garcia Richard says New Mexico is continuing to see the benefits of the boom in the Permian Basin, which straddles parts of New Mexico and West Texas.

Federal energy forecasters expect the United States to pump 12.4 million barrels of crude a day in 2019 and 13.2 million barrels a day in 2020. Most of the increase is expected to come from the Permian Basin.