The Economics of Protecting Otero Mesa

Guest Commentary

There are generally three main arguments of proponents for drilling in Otero Mesa: 1) It will decrease our dependency on volatile foreign sources of energy; 2) it will create jobs and generate much needed revenue to state coffers and 3) it will help lower prices at the pump. These arguments, though compelling, do not address the real energy problems our country is facing nor do they offer any ironclad solutions.

According to the Energy Information Agency, the United States possesses only 3 percent of the world’s total oil reserves, while Middle Eastern countries control roughly 64 percent. Likewise, according to a 2005 report entitled "Statistical Review of World Energy," conducted by BP, the United States has just 2.9 percent of natural gas proved reserves.

It remains evident that America can never drill its way to energy independence. Similarly, drilling Otero Mesa will not wean us off foreign sources of oil and gas nor will it lower prices at the pump. Even Director Rundell of the Bureau of Land Management (BLM) calls the oil and gas resources of Otero Mesa “small potatoes.” Small potatoes will never increase national security or reduce our heating bills. Drilling for small potatoes however, would fragment the area, usher in the industrialization of a wild and unique landscape, not to mention threaten the critical groundwater supply and the livelihood of the ranchers that have worked this land for more than five generations.

Protecting Otero Mesa for its vast wildlife characteristics and its fresh water aquifer, coupled with investments in clean, sustainable renewable resources will have a much greater economic impact on southern NM than any amount of oil and gas to be found under this grassland.

How so?

According to the New Mexico Department of Tourism, the outdoor tourism industry in 2005 generated over $5 billion dollars to the state economy.

Throughout the past several years, the Otero Mesa debate has attracted not only national attention but also international interest. In New Mexico, grassland protection is virtually nonexistent. More and more people are traveling to New Mexico to visit Otero Mesa and more people in the state our going to explore this valuable conservation resource and the wildlife that call it home. That translates into real tourism dollars for Otero County and if protected that amount will only continue to grow.

Otero Mesa represents the largest and wildest Chihuahuan desert grassland left on public lands in America. The area is home to over 1,000 native wildlife species, including mule deer, prairie dogs, mountain lions, golden and bald eagles, 250 species of migratory songbirds, the endangered Aplomado falcon, and the state’s healthiest herd of pronghorn antelope. In addition, thousands of ancient archeological sites, many of which that have yet to be documented cover the landscape.

Local businesses will greatly benefit from this economic-engine called Otero Mesa. Unlike oil and gas, tourism to Otero Mesa will be sustainable.

Likewise, New Mexico is becoming a world leader in alternative sources of energy like wind and solar. In Luna County, the world’s largest solar panel factory and power plant is breaking ground. The power plant is expected to generate enough electricity to power 100,000 residential homes. Moreover, the plant will create between 300 and 400 permanent jobs as well as adding millions of dollars in revenue to state coffers.

On the south end of Albuquerque, a photovoltaic plant is being built where solar panels will be manufactured and over 1,000 jobs will be created.

The New Mexico Wind Energy Center, just northwest of Fort Sumner, which generates enough electricity to power 94,000 average-sized New Mexico homes, spurred over 200 jobs during its construction in 2003. The project is expected to provide $40 million in economic benefits for the surrounding communities over the next 25 years.

By contrast, Bureau of Land Management estimates of the employment and earnings impact of oil and gas development in Otero and Sierra Counties would create only 75 additional jobs and $2.2 million in labor income in Otero County. This represents three-tenths and two-tenths of one percent of 2001 Otero County jobs and personal income. The oil and gas potential of Otero Mesa would support 10 of those jobs.

By investing in clean, renewable resources, New Mexico could become a leader in exporting this energy to other states (which we currently do with oil and gas) and thereby generate revenue to the state.

It is clear that protecting Otero Mesa’s wild grasslands and fresh-water aquifer, in addition to producing and manufacturing alternative forms of clean energy would be of greater value to New Mexicans quality of life than a few small potatoes worth of oil and gas.