A MOVE BY OPEC COULD END UP HELPING NEW MEXICO’S ECONOMY. THE OIL PRODUCING COUNTRIES SAY THEY PLAN TO CUT PRODUCTION FOR THE FIRST TIME IN EIGHT YEARS. WALLY DRANGMEISTER WITH THE NEW MEXICO OIL AND GAS ASSOCIATION SAYS THAT COULD LEAD TO HIGHER PRICES AT THE PUMP…BUT ALSO AN INCREASE IN DRILLING IN OUR STATE.
DRANGMEISTER SAYS THERE ARE ABOUT 30 DRILLING RIGS CURRENTLY OPERATING IN NEW MEXICO AND IF PRICES RISE FIVE TO 10 DOLLARS HIGHLY, IT’S POSSIBLY MORE DRILLING RIGS COULD BE OPERATING.
DRANGMEISTER SAYS HIGHER OIL PRICES COULD ALSO MEAN A BOOST IN STATE GOVERNMENT REVENUES FROM ADDITIONAL ROYALTIES THAT OIL AND GAS COMPANIES PAY.
