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Energy Grows the New Mexico Economy

New Mexico

New Mexico is a land known for its rich history and vibrant culture. This unique foundation creates a melting pot of traditions and families across the state with celebrations year-round. Whether it’s another Isotopes win, exploring the oldest art markets in Santa Fe, or jamming out to ‘The Shins,’ you can always count on having a great time with the residents of this close-knit state. But to experience all the state has to offer, energy is required to not only fuel the fun but to fuel the economy.

Whether you know it or not, New Mexico’s economy is driven largely in part by the energy industry, with oil and gas production being the number one source of income for the state. In 2017 alone, New Mexico produced a record high of 172 million barrels of oil – enough for every person in the state to fill up their car three times.

Last year in 2017, the number of jobs in New Mexico increased by 0.9 percent, which is a sign that trend will continue to gain momentum this year. Additionally, the New Mexican portion of the Permian Basin recently increased production in the region, it’s predicted that the economy will also follow suit. New Mexico Oil and Gas Association reported that the state’s rig count has reached an all-time high of 103 rigs. This not only means that New Mexico will be producing more income, but it will also be adding roughly 5,000 jobs in the state. That’s 5,000 people who can now provide for their families and create sustainable futures for themselves and their children.

That’s just one example, but there are many. Energy impacts our day-to-day lives in ways we don’t even normally think about until it’s not there. Just imagine if we didn’t have gas to power farm equipment. New Mexico alone is home to 23,800 farms and 43.9 million acres of farmland. With a strong knowledge of how to properly grow chilies, pinto beans and pecans, New Mexicans flourish because of farming and not to mention – ranching. However, without energy powering the necessary equipment, how would these 43.9 million acres of carefully cultivated agricultural and ranch lands continue to provide income for families and businesses?

Casinos are also another important source of income for New Mexico, they also provide a social outlet and a place to catch up with friends. What would a Friday night after work be without the chance to let loose at Sandia Casino? Without affordable, adequate, reliable sources of energy, it wouldn’t be impossible to run the slots, have the lights on, or power the cold drinks at the bar.

New Mexico has a unique advantage of being an energy producing state that’s known for its fun-loving and unique culture. It’s one of the main reasons people love to visit. Whether it’s the beautiful scenery, the Albuquerque International Balloon Festival, or exploring the indie music scene, none of it would be attainable without the growing oil and gas industry. New Mexico’s economy, relies on it.

Affordable Energy, Affordable Travel and Expanded Opportunities for Emerging Economies

A hundred years ago, international travel was either for the wealthy or for migrants who wanted a new life so bad that they were willing to pack up anything they could and take a long, expensive journey to a new country. Now, fast forward to 2018 and if you book early enough and don’t mind a little less legroom, no meal service, and no luggage allowance, you can fly from New York to Europe for around $200—or even to Asia for $300. And even as energy prices have increased, it is still the best time in human history for people to travel and experience other cultures, visit family, and for workers to access jobs all around the world.

It’s not just middle-class tourists who are reaping the benefits of this cheap and accessible travel either. Migrating to another country for better work opportunities is no longer a prohibitively long-term proposition, and emerging markets are increasingly taking advantage of the opportunities presented by lower energy costs more now than at any time in human history. According to the United Nations (UN), the total number of international migrants in 2015 was 244 million, up from 173 million in 2000—a 30% increase in just 15 years. One factor in this is undoubtedly the lower cost of travel, a decent percentage of which is attributable to more affordable energy and improved energy efficiency, which have given way to interesting business models.

People have been moving internationally to find work for as long as international borders have existed; the main change that cheap travel has brought about is increasing the distance that migrants can travel. The average migrant in 1970 traveled about 2900 kilometers (1800 miles), while in the year 2000 they traveled roughly 3650 kilometers (about 2300 miles). Since then, the trend has most likely continued its upward movement, as emerging economies now have a much larger potential market to find employment in.

For your average job-seeker, the low cost of travel opens up a host of new opportunities. An Indonesian migrant might previously have been limited to finding work in other Asian economies, like South Korea or Singapore. With the cost-effectiveness of a plane ticket now, compared to their projected income, means they can now buy a plane ticket and show up for a job on a cruise ship leaving from Miami. In fact, they may be able to make the intercontinental flight every few months in between jobs.

And while other transportation markets are exploring more cost-effective ways of fueling up, from electric cars to solar-powered ships, airplanes remain inflexibly dependent on oil. So, how sustainable is this – especially with two volatile markets—oil and airlines—in play? Could travel be more expensive ten years from now?

Fortunately, the “energy intensity” or “carbon footprint” of flying (the amount of energy consumed per passenger) has decreased by about 75% since 1970, according to Michael Sivak of the University of Michigan’s Transportation Research Institute. Planes have gotten much more energy-efficient: they are designed for better fuel economy, making it more sustainable for them to carry more passengers. In 1970 most flights were taking off half full, as regulations kept prices high and lack of analytical software limited airlines’ ability to fill planes. Today’s flights tend to be about 83% full, translating to lower costs for each passenger. These trends make it unlikely that we will see ticket prices return 1970s-levels, though they will certainly fluctuate, as they are now, with energy costs.

Emerging economies have a lot to gain from out-migration, especially given the easy access they have to the rest of the world. They are also benefiting from the reverse as cheap travel has made tourism a much bigger industry for industrialized and emerging economies worldwide. Tourists who had previously been limited by their budget to closer destinations can now travel wherever they like without major differences in cost.

The rise of the internet has even enabled “digital nomads” from America and Europe to live in countries like Morocco, Thailand, Columbia, and more, even as migrants from those countries send money home from abroad. Affordable energy continues to draw the world closer together, improving lives on both sides of the equation.

Big Green Backs Local Environmental Group in an Attempt to Ban Oil and Gas in Colorado

Denver, CO – Following the announcement by the Colorado Secretary of State that Initiative 97, a ban on oil and gas drilling brought forward through out-of-state Big Green funding, had gathered the required number of signatures to make the November ballot, Consumer Energy Alliance (CEA) put out the following statement:

“Initiative 97, now known as Proposition 112, would have a devastating impact on the personal income of Colorado’s energy consumers and has significant employment and economic repercussions beyond just Colorado’s oil and gas industry including retail trade, health care, construction, and food services,” said Andrew Browning, Chief Operating Officer of CEA.

“The carelessness of proposing such an initiative flies in the face of hard-working men and women and needlessly removes jobs through-out Colorado communities without any thoughtful solutions on how to continue forward with safe production of our state’s resources.

“We hope Colorado citizens understand the seriousness of this proposition and what is at stake. Together, our friends, our neighbors, and our state are all at risk of losing jobs, access to affordable energy, and billions of dollars to our economy. It’s time for our state’s policymakers to come to the table to find rational solutions, not knee-jerk reactions.”

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About Consumer Energy Alliance

Consumer Energy Alliance (CEA) brings together families, farmers, small businesses, distributors, producers and manufacturers to support America’s energy future. With more than 450,000 members nationwide, our mission is to help ensure stable prices and energy security for households across the country. We believe energy development is something that touches everyone in our nation, and thus it is necessary for all of us to actively engage in the conversation about how we develop our diverse energy resources and energy’s importance to the economy. Learn more at ConsumerEnergyAlliance.org.

Contact:

Emily Haggstrom

720-582-0242

EHaggstrom@consumerenergyalliance.org

Energy Grows Sustainable Farming

In 1930, 25% of the U.S. population lived on farms. Today, it is less than 2%. And 97-99% of U.S. farms and ranches are family owned and are producing 86% of the nation’s food.  In 2012, the average age of farmers and ranchers hit 58 years old and according to a National Young Farmers Coalition report, 63 percent of farmland will need a new farmer in the next 25 years as older farmers retire.

As the baby-boomer generation in America begins to retire, what will happen to family farming? Who will take over and how will they manage the lands?

Those questions sit right alongside America’s growing energy development.  America is now the number one producer of oil and natural gas and energy development continues to grow in rural and traditionally agriculture dominated areas, how will the two coexist?

To help us better understand this predicament, we turned to Michelle Smith of Country Fresh Farms who is passionate about sharing her experience in both industries: farming and energy development.  Ever since Michelle was diagnosed with, and survived, cancer in her early twenties, her and her husband have been committed to high-quality nutrition, making whole and organic food a top priority. They also have a grandson that was born with spina bifida and is confined to a wheelchair. For many years, he was unable to eat anything but soft foods, making the Smith’s goat’s milk of supreme importance to his health, development, and well-being.

Given the challenges facing farmers today, Michelle says “in order to build a farm business you must have outside income. Early on in my working years, I was employed by the oil and gas industry and for the last 26 years, I have worked for a family that owns significant minerals. But even when we were personally presented with an opportunity to lease some of our lands for energy production, I felt like I needed time to think about it. Despite my experience, the decision to lease our minerals to oil and gas producers wasn’t easy.”

Michelle is referring to being a mineral holder which means she owns the rights to oil, natural gas and other minerals like gold, silver, and copper, and she can draw income from the minerals they own. The United States is the only country in the world where individual landowners can own and financially benefit from the minerals beneath them.  Estimates vary, but there are likely one to three million mineral owners in America, some of which are certainly farmers or ranchers like Michelle and her husband.

“Like many farm-to-table businesses, if we can’t offset operating costs, then we’re out of business, Michelle says. “Organic operations are expensive and our mineral rights, along with the subsequent revenue from oil and gas, have made all the difference to our small operation.”

Michelle says her work in both sectors has allowed her to gain a holistic view of both the agriculture and energy industry, giving her confidence that organic farming and oil and gas development can co-exist.

Low Energy Costs Help Louisiana

Elementary school kids climbing on to a school bus

CEA’s Link Browder recently took a look at how Louisianans are benefiting from low cost energy as a result of increasing energy production.

The start of a new school year, the onset of the college football season and Shintech Louisiana announcing it’ll invest nearly $1.5 billion to expand manufacturing facilities in Plaquemine share one commonality: Energy.

Thanks to the state’s support for policies that allow for lower-cost, locally-made energy, more families can afford school supplies and gasoline to drive or carpool to the big game.

Read more – The Advocate

How States Like New Mexico Depend on the Energy Industry

Santa Fe New Mexico

David Holt, President of CEA, recently discussed the positive impact the energy industry has had on revenue generation for the state of New Mexico, which has allowed for more money to be invested in education and other public services.

Record output and energy infrastructure investment have allowed lawmakers and Gov. Martinez to allocate more funding to programs that have helped sustain must-have infrastructure like roads, schools, and public safety. They have also left the state with strong cash reserves, a reversal from a year ago, when lawmakers wrestled with how to fill a ballooning budget gap.

Read more – RealClear Policy

Time to Reassess Energy Policies

Solar panel installation on roof

CEA’s Chris Ventura discusses the incentives available for solar energy installations to Michigan’s energy consumers and the importance of reassessing state policies to ensure a sustainable future for solar power generation.

With the state projected to add over 800,000 more residents over the next three decades, plus new businesses with more employment opportunities, Michigan will need to maintain a modern and flexible, affordable electricity mix to ensure it can meet growing demand — which is why it’s paramount policymakers reassess policies and incentives that align with ever-changing market conditions.

Read more – Crain’s Detroit Business

So What’s Your Solution for Suburban Sprawl?

Aerial view of traffic on a highway in LA

The Environmental Protection Agency (EPA) asserts that suburbanites consume more energy than the higher populated inner cities. Suburbanites must use their automobiles to commute to work or into the city or retail centers for entertainment, shopping, and school, whereas residents in urban areas can walk, ride bikes, or use public transportation. Public transportation can reduce energy use by as much as 50 percent. Suburban areas use more energy, mostly for heating and cooling, because there are more individual and single-family dwellings as opposed to more multi-family homes in densely populated areas where the smaller size and common walls reduce heating and cooling costs.

While residents in suburban areas enjoy a lifestyle free of “big city” problems, such as noise, pollution, and crime, there are still negative outcomes that should be addressed, such as greater fuel consumption due to longer commutes, larger lawns that require more water usage and bigger homes to heat and cool. And according to the Urban Land Institute’s Terwilliger Center for Housing covered in the Wall Street Journal, “suburban areas surrounding the 50 largest metropolitan areas makeup 79% of the population of those areas but accounted for 91% of population growth over the past 15 years.” That’s a huge number of people commuting from massive residential neighborhoods.

And with roughly three-quarters of people between the ages of 25-34 moving to the suburbs, new housing developments are sprouting up like weeds. Vast amounts of energy are used to build new developments. Trucks transporting building materials, power tools, and machinery are all dependent upon fuel or electricity to build new homes. Many builders and developers are trying to use what is already in place by constructing mixed-use communities where housing units sit on top of offices, shops, restaurants and large retail. These mixed-use facilities are not only a smart move, but they use less energy.

Mixed-use facilities aside, even after these large housing developments are constructed, the amount of energy consumed remains at a high. As stated before, homes found in the suburbs are generally larger than those in the city, with the average single-family home in the U.S. measuring up to roughly 2,457 square feet. That’s a lot of space – making it harder to regulate temperature. It also takes more electricity to power suburban amenities such as TVs and appliances. Don’t forget taking the kids to ballet and soccer practice also requires a drive across town, adding up a family’s energy consumption. Multiply all that consumption with the number of people in your city, not to mention other communities and the state, and that adds up.

In fact, greenhouse gas emissions in suburban areas account for more than double the national average, whereas densely populated urban areas use less than half the national average. Reducing carbon emissions is not an easy fix. The area of the country in which you live largely determines the type of emissions expended. Densely populated suburbs, for example, emit more greenhouse gases; and these higher incomes of suburbanites equate to more goods consumed, such as cars, lawn mowers, motor homes, and other such items. But combining energy-efficient technologies, smart home products, and smaller more fuel efficient cars, make a significant impact on the environment. Americans can also work to reduce their carbon footprint by recycling and using dishwashers and washing machines efficiently – or purchasing new ones that can help save not only money but time.

The suburbs are continuing to see high rates of new residents, and the decision for young individuals and families to move to the suburbs is growing. With this growth trend, there are a few outcomes including higher energy consumption rates as well as higher greenhouse gases. This is a trend that does not seem to be coming to an end. As individuals move farther out of the city into more space, it is important to find ways to become more energy efficient including carpooling to work or walking to drop the kids at after-school activities rather than driving.

So before rash decisions are made on energy – like shutting down all pipelines, or halting a specific type of energy development – consider how you really use energy in your daily life and how you can save with solutions that that think through what we all use. Much of that starts with conservation and efficiency, but in the meantime, let’s continue to work together and make energy a topic for rational discussion.

Energy Grows Tourism in New Mexico

New Mexico

Each year, millions of people visit the Land of Enchantment to experience the scenery, its famous cuisine, stand-out southwestern art, and historic (oftentimes ancient) landmarks of the Pueblo people and early Mexican settlers. In addition to oil and gas production, tourism is one of the most influential drivers of New Mexico’s economy – bringing in over $6.4 billion dollars. Tourism not only gives a hefty boost to the state’s economy, but it also supported 8.4% of all jobs in the state. So whether it’s leading a tour through the Carlsbad Caverns or keeping visitors safe while they experience river rafting in Santa Fe for the first time, there are many careers to explore in the tourism field. Now you just need to get there.

And that’s possible in part to reliable and affordable energy, which makes traveling through the state an attainable goal for everyone – whether you fly, drive, take the train or a bus. Which is why one of the best ways to support tourism is to support the energy industry. In 2016, New Mexico hit a tourism record with 34.4 million visitors who, on average, each visitor spent $183.50 per trip, meaning more than $6 billion dollars for the state based on tourism alone. Let’s face it, when the cost of gas increases, so does the price of plane tickets, gasoline for road trips, and energy consuming activities like ATV-ing through the desert and hot-air balloon rides. That’s because the first thing people say ‘goodbye’ to when prices go up is their yearly trip to events like the Albuquerque International Balloon Fiesta.

Friendlier energy prices shape the way consumers live. People buy larger cars, they travel, go out to eat, shop, and pay for things they not only need but want. Without affordable energy, all these leisure activities disappear – and people decide to spend their vacations at home – instead of taking the hit on their bank accounts.

So, what can you do to help? When it comes to supporting tourism and the energy industry, there’s a way for everyone to do their part. According to the New Mexico Tourism Department, it’s as easy as posting photos on your Instagram, Facebook, or Twitter of you or your friends and family having fun in the state! You can also write a blog, just like this one, talking about all of the fun things to do in New Mexico. People love hearing from the locals about the best things to do on their trip. State residents always know the best coffee shops or ‘hidden gem’ restaurants that Trip Advisor may not. It’s an easy way to promote your community and make it a travel destination for people around the globe, but you can do it for yourself without any effort just by supporting the energy industry to keep prices low and sustain small businesses in our state that depend on tourism.

The time to act is now if we want to ensure a bright and vibrant future for New Mexico. Support the growth of your community by supporting energy and tourism, and honest conversations about how they intertwine.

Latest Energy Tool Isn’t the One Poverty-Stricken Americans Need

Riding Bus in Rain

David Holt, President of CEA, takes a look at the impact higher energy costs have on families living below the poverty line, and what we can do to create real energy solutions.

These Americans deserve better. To help, we need real, tangible energy solutions — not the kind of unrealistic, risky assumptions and incomplete data that have led states such as California and New York to have the highest energy costs in the nation, hurting their citizens and driving many to relocate to other states.

Read more – Morning Consult

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