Iran Conflict Fuels Oil Windfall — and Political Tension — in New Mexico

Rising oil prices linked to tensions surrounding the Strait of Hormuz have created a financial windfall for New Mexico, a Democratic-leaning state where fossil fuel revenues fund a broad range of public programs, Morgan Lee reported for the Associated Press (AP).

As oil prices surge because of the conflict involving Iran, billions of additional dollars are flowing into the state treasury.

New Mexico produces more oil than any US state except Texas. Revenue from oil-related taxes, royalties, and lease sales helps pay for tuition assistance, school meal programs, health coverage, and a new universal child care initiative.

As oil prices surge because of the conflict involving Iran, billions of additional dollars are flowing into the state treasury, creating political discomfort for Democrats who oppose the war and advocate reducing reliance on fossil fuels.

“It’s hard for people to think about, ‘Oh great, we have this windfall,’ and children are getting killed on the other side of the world,” said Deb Haaland, who is running for governor.

Haaland is one of two Democrats seeking to succeed Gov. Michelle Lujan Grisham, who is completing her second term.

As Interior secretary under former President Joe Biden, Haaland pushed policies aimed at limiting unrestricted oil and gas development on federal lands.