Associated Press: “States Brace for Trump’s Push to Make Oil Drilling Cheap Again”
Analysis and insights from RFF Fellow Brian Prest are integral to this article about recent policy proposals to make oil and gas drilling cheaper on federal land.
“States receive nearly half the money collected through federal royalties, depending on where production takes place. The environment and economics research group Resources for the Future estimates a roughly $6 billion drop in collections over the coming decade.
The stakes are highest in New Mexico, the largest recipient of federal mineral lease payments. The state could could forgo $1.7 billion by 2035 and as much as $5.1 billion by 2050, according to calculations by economist Brian Prest at Resources for the Future.
More than one-third of the general fund budget in the Democratically-led state is tied to the oil and gas industry.
‘New Mexico’s impact is way bigger than Wyoming or Colorado or North Dakota,’ Prest said, ‘and that’s just because that’s where the action is on new development.’”
