New Mexico’s Oil and Gas Industry Honored at Awards
“It was a recognition of the kind of man Chuck was,” said Lynne Andersen, president of NAIOP.
This
year, however, the awards committee took a different approach. Rather than
singling out an individual who led the state forward, the award was presented
to the New Mexico Oil and Gas Association as an organization. Andersen
described the choice as a way of honoring the economic and philanthropic
contributions of the state’s entire booming oil and gas industry. She described
the industry as sometimes overlooked and denigrated by state and local
officials.
“There
is this industry that helps New Mexico work,” Andersen said. “And without them,
we would be in a world of hurt.”
Over
the last several years, new extraction technologies have helped make the
Permian Basin, spanning much of West Texas and southeastern New Mexico, one of
the most productive oil fields in the world. The changing industry has reshaped
communities in New Mexico’s southeastern corner, while providing a massive wave
of new funding for state programs. According to new revenue figures from the
state, New Mexico legislators will have an estimated $797 million in “new”
money available in the budget year that starts July 1, which has been driven
heavily by growth in the oil and gas industry. Oil and gas revenue now makes up
about 38% of direct state revenue collections, and around 47% of all revenue
sources, according to the Legislative Finance Committee.
Ryan
Flynn, executive director of the oil and gas association, said the industry has
battled low oil prices for much of the year, but infrastructure advancements
have helped the boom persist.
“It’s
a testament to the resiliency of the industry,” Flynn added.
Flynn
said the industry has learned from prior boom-and-bust cycles, and has
prioritized improving communication and support in communities feeling the
effects of the growth, as well as in cities like Albuquerque that are farther
away from the oil fields.
NMOGA
launched the Brighter Future Fund in September, which allows the association to
provide grant funding to nonprofit and educational organizations in other parts
of the state. NMOGA and the American Petroleum Institute have committed $1
million to the fund through 2024, and the fund will distribute $200,000
annually.
“So
many of the people in our industry, they give for the purpose of giving,” Flynn
said.
The
awards ceremony also honored contributions from technology giants in and around
Albuquerque.
The
Chairman’s Award, which is designed to honor the project deemed to have the
most impact on the physical and economic development environment of the state,
went to Facebook’s massive $1 billion data center project in Los Lunas. The
first building in Facebook’s planned six-building complex was completed in
February. The data center complex is expected to be complete by 2023, and is
expected to be home to more than 150 employees and contractors.
The
Vision Award went to Netflix’s Albuquerque Studios project. The streaming giant
finalized its acquisition of Albuquerque Studios in January, committing to
spend $1 billion over the course of a decade and add 1,000 jobs per year.
Additionally,
NAIOP announced that the incoming 2020 chair of its board of directors will be
Joe Farr, founder and president of Duke City Commercial. Farr has been a
licensed real estate broker in New Mexico since 1994. Farr replaces outgoing
chair Debbie Harms, of NAI Maestas and Ward.
Andersen
praised Farr, noting that he brings a unique blend of private-sector experience
and focus on economic development initiatives.
“He’s very knowledgeable and just a plain hard worker,” Andersen added.