How big is the oil boom that is inflating the state treasury with historic sized reserves? From the NYT:

Last year alone, the Permian’s production rose 1 million barrels a day, and it could surpass the Ghawar field in Saudi Arabia, the world’s biggest, within three years. Now producing 4 million barrels a day, the Permian generates more oil than any of the 14 members of OPEC except Saudi Arabia and Iraq. All told, domestic oil production increased 2 million barrels a day last year, for a record of 11.9 million barrels, making the United States the world’s top producer.

And there's no end in sight:

It's important and almost stunning to remember that, just a decade ago, the dusty plains of West Texas and Southeast New Mexico that make up the greater Permian Basin were widely considered to be a "dead area" by most in the oil and gas industry. Major oil companies like Chevron and ExxonMobil had pretty much abandoned any drilling activities. . . preferring to focus their capital dollars on searching for oil in more promising parts of the world. In September of 2008, total U.S. oil production was roughly 3.2 million bopd. This month, the EIA projects that the Permian Basin alone will put that much crude onto the market. Now, just 10 years later, this basin is the hottest oil and gas play on the face of the earth, the driver of energy growth for the world's largest oil and gas-producing nation. Amazing.

Amazing indeed and amazing that it is so downplayed by the Santa Fe austerity hawks who can't seem to stand the thought that giant state surpluses may be common for several years. But it's the doves turn to fly at the Capitol and off they go.

The chances of newly elected State Land Commissioner Stephanie Garcia Richard winning an increase from the legislature in the royalties oil companies pay to the state--from 20% to 25%--doesn't seem to have much legs, given the current boom that is generating billions for the state. However, she may have another way of getting energy to pony up more loot, says Jim Baca, a former ABQ mayor who also served as as a Dem state land commissioner:

When was the last time you heard that a producer underpaid their royalties and taxes? Now we must perform a forensic audit of these same producers over the last eight years. The audit function at the state level fell apart under the mismanagement of the Martinez administration, and I estimate tens of millions have been left on the table due to incompetence; possibly even more. The New Mexico Taxation and Revenue Department, the Oil Conservation Commission and the State Land Office need to make the Land Grant Permanent Fund whole by starting the audit immediately.

You can bet that caught the attention of the oil boys, who are already nervous about Stephanie.

And they have another worry. Slapping a moratorium on fracking, the technology that has made possible the recovery of previously unrecoverable oil in the SE Permian, would seem far-fetched. But a four year moratorium is what newly appointed ABQ Dem State Senator Antoinette Sedillo is proposing. She worries about the impact of fracking on the environment and the amount of water used in the process. The oil boys strike back with this site, saying:

Senator Sedillo Lopez is planning to devastate our economy by passing a bill that would enact a 4 year ban on fracking! Fracking is a safe and scientifically engineered process that has been used in New Mexico for more than 50 years without a single case of groundwater contamination. Tell Senator Sedillo Lopez you support fracking in New Mexico! 

INTO THE POLITICAL FIRE

Arencón (right)

A well know political power player in ABQ is headed to the Fourth Floor. MLG announced that. . .

Diego Arencón, a native of the Barelas neighborhood in Albuquerque, is the executive policy advisor for labor management affairs. He was a 22-year veteran of the Albuquerque Fire Department, serving as the union president for IAFF Local 244 for a dozen years, as state president of the New Mexico Professional Firefighters Association and previously as the international District Field Representative for the IAFF.

Arencón, 43, tangled with ABQ GOP Mayor Berry and his tough on labor policies at the outset of Berry's tenure but managed to make the peace, an experience that should help as he enters the bureaucratic thicket of state labor relations.

Under his direction the union has been heavily involved in Democratic Party politics. His political aptitude was on display in the recent election when he accurately predicted the exact percentage of Lujan Grisham's gubernatorial win (57-43) as well as the precise winning margin of Xochitl Torres Small in the southern congressional race.(51-49). But he kept his Super Bowl prediction under wraps.

IT'S TIME?

Decriminalize instead of legalizing recreational pot? That's one proposal being talked about in Santa Fe, but a number of readers aren't convinced, like Arcy Baca:

The bills to decriminalize pot are ridiculous! We are going to have the pot smokers and any problems that may come with that but we don't make a nickel on it. Legalize pot, tax it, If your're driving and high on pot the same rules apply as alcohol. It's time. 

THE BOTTOM LINES

In a first draft Monday we had the minimum wage in Las Cruces in the $9 an hour area. Actually, it went to $10.10 an hour effective, January 1.

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(c)NM POLITICS WITH JOE MONAHAN 2019