No. 2 oil-producing US state braces for possible end to income bonanza in New Mexico

By MORGAN LEE
Associated Press

SANTA FE, N.M. (AP) — New Mexico is bracing for the possibility that a bonanza in oil income for the nation’s No. 2 oil producing state will end if the world’s thirst for oil falters. A Monday forecast for state government income includes a windfall from the oil and natural gas industry. It’s more money than the state can responsibly spend each year. The state is stashing away cash in investment trusts in hopes of sustaining critical programs when fossil fuels eventually run dry. The forecast cautions that slowing oil production and lower prices are expected to generate significantly less federal payments next year and beyond.