Dec. 8—Raking in the second-highest revenue ever, the New Mexico State Land Office this week announced it made $2.56 billion in fiscal year 2024.
Unsurprisingly, most of that money came from the oil and gas industry, though the fossil fuel makeup is notably less than the past fiscal year — the only time the land office has earned a higher revenue. Renewable energy revenue still comprises of less than 1% of the total revenue.
The $2.56 billion will go to the state's beneficiaries, with public schools receiving the most.
"We're proud that we're once again bringing in billions from activities on state lands to make a difference for our kids in the long run," Land Commissioner Stephanie Garcia Richard said in a statement.
Oil and gas comprised about 94% of the total Stand Land Office FY24 revenue. About $2.3 billion came in from royalties, and another $97 million came from land rentals. That's a drop from FY23, when the oil and gas industry generated $2.66 billion, about 97% of that fiscal year's total land office revenue.
The State Land Office highlighted that, in FY24, $214.5 million came from sources other than oil and gas — a record amount.
"We've aimed to diversify our revenue-earning activities at every turn, and we are starting to see real results with our highest earnings from sources other than oil and gas royalties ever," Garcia Richard said. "This revenue keeps our public institutions running while keeping money in the pockets of New Mexico's taxpayers."
Still, money coming in from renewable energy continues to make up less than 1% of the total revenue, as was the case last fiscal year as well.
FY24 saw about 0.17% of total revenue come from renewable energy, including $3.2 million from wind energy and about $904,500 from solar energy — adding up to $4.4 million. It's very similar compared to FY23, when solar and wind energy rentals also generated about $4.4 million.
Revenue from renewable energy will never be one-for-one with oil and gas, Garcia Richard has long said, and she told the Journal this week via email that clean energy revenue will likely never surpass oil and gas royalties.
"But we know that oil is a finite resource. Once a producer pulls oil from the ground, it's gone forever," Garcia Richard said. "Understanding that reality, we need to earn revenue from as many sources as possible so money keeps rolling in for our schools once the wells start to dry up."
That's also why she wants higher royalty rates on the oil and gas industry, she said — to get more revenue while oil is still at high production levels.