Whether they like it or not, the various states which possess rich oil and gas minerals deposits beneath their soil are in a constant competition with one another to attract capital dollars across their borders. For more than 200 of these companies, excessive borrowing led their declaring bankruptcy during the depth of the recent bust in crude oil prices. This part of the state poured half a billion dollars into the state's coffers from a single federal lease sale last September. The state governments in both states this year feature new incoming Democratic governors and legislatures featuring Democrat majorities in both chambers. A bill under consideration in New Mexico would allow the state's Oil Conservation Division (OCD) to directly impose penalties and fines on operators that it deems to have violated the state's environmental regulations.

Source: Forbes January 22, 2019 17:03 UTC