“Everything is in a state of flux, including the status quo.”

– Robert Byrne

This past Thursday was Earth Day, April 22, and during a virtual climate summit, President Biden pledged to cut U.S. greenhouse emissions in half by 2030. He outlined an ambitious plan that calls for big changes to our energy and transportation industries. Biden pledged to double climate-related financing for low-income countries by 2024, encouraging the private sector to fund sustainable infrastructure and initiatives.

“Scientists tell us that this is the decisive decade, this is the decade we must make decisions that will avoid the worst consequences of a climate crisis,” Biden said. The goal to cut greenhouse gas emissions by 50% or more is aggressive and has come under wide criticism from both climate activists and the oil and gas industry.

New Mexico’s Mark Moores, who is running against Melanie Stansbury to fill Deb Halland’s seat in Congress, pushed back on the Biden administration’s January pause of new federal oil and gas leases. “Forty percent of our revenue as a state government comes from the oil and gas industry. These jobs are high-paying, great careers for many New Mexicans,” he said. During the 2021 legislative session, Mr. Moores introduced bill NM HJM3 (along with 21 other GOP members), which requested the White House to waive the suspension of new oil and gas leasing and drilling permits for federal lands in New Mexico. The bill did not pass.

But what Mr. Moores doesn’t mention is that New Mexico has experienced a reduction in fossil fuel development over the past two years due to the impact of COVID-19. Economic analysts are warning that New Mexico cannot rely on its oil and gas industry as the market continues to struggle amid the pandemic. For example, a study saw that the oil and gas industry experienced a 17% decline in gross receipts in Eddy County (a big oil and gas country in New Mexico), accounting for a $264 million loss in revenue.

New Mexico has long been dependent upon oil and gas for years. Lease fees, royalty payments, and taxes from oil and gas operations account for about 30% of the state’s budget in the past few years, according to a study from the Institute for Energy Economics and Financial Analysis. However, having 1/3 or our eggs all in one basket is risky, especially with an industry as volatile as oil and gas. The oil industry has historically been plagued by commodity price fluctuations, contentious global trade negotiations, as well as supply and demand issues, and now with climate change, the future of the fossil fuel industry is uncertain.

Our nation has been here before, and our track record hasn’t been that great. For example, the collapse of the steel and timber industries, and the global outsourcing of manufacturing. Those jobs and revenue are forever gone, and those communities who depended on steel, timber and manufacturing suffered greatly. Politics and changing markets have reshaped local economies powered by a single industries, and oil and gas is no different. As the Biden administration outlines its climate change policies, the most challenging goal is that New Mexico not be left behind.

I continually hear from proponents of the “status quo” that Biden’s plan will destroy the oil and gas industry, it will take thousands of jobs away from New Mexicans. Aside from this moaning and groaning, I don’t hear a peep from Mr. Moores, or other conservatives about their plans to expand and grow the economy in the Land of Enchantment.

The problem with supporters of the status quo is that they are in denial of the inevitability of change, and refuse to acknowledge New Mexico is already gaining ground in transitioning to green energy. Energy companies are interested in using our wind and solar resources to not only generate power for New Mexico markets, but sell the energy to other states across the U.S. This is a boon for rural communities, and experts estimate that wind and solar initiatives could generate nearly 14,000 new jobs over the next 10 years. Although 14,000 new jobs pales in comparison to the some 134,000 jobs currently in the oil and gas industry, it’s certainly a start.

Although critics point out that Biden has no clear plan to reduce emissions by 50%, it’s clear that the time is now to act on climate change, to enact plans for a transition to sustainable and renewable sources of energy. The status quo of oil and gas dependence will be our undoing if we fail to diversify our economy.