The global oil bottleneck in the Strait of Hormuz has generated an enviable — and politically sensitive — financial windfall on the other side of the world in New Mexico, a rare Democratic-dominated state where fossil fuels are a bedrock of progressive social services.
New Mexico produces more oil than any other state besides Texas, and the state’s revenue from taxes, royalties and lease sales helps cover the cost of college tuition, all school meals, health insurance and a new initiative for free universal child care.
Now that oil prices are surging from the conflict with Iran, money is flooding into the state treasury and creating an uncomfortable situation for Democrats who oppose the war and would rather reduce their 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, the former U.S. Interior Department secretary running for governor.
Haaland is one of two Democrats running to succeed Gov. Michelle Lujan Grisham, who is wrapping up her second term in office. A former congresswoman and state party chair, Haaland worked to limit unfettered oil and gas exploration while serving in President Joe Biden’s Cabinet.
