Will New Mexico’s Next Governor Kill The State’s Golden Goose?

(Photo by Maddie Meyer/Getty Images for Lumix)

A fairly amazing story rose to my attention this week when the American Petroleum Institute (API) noted in an X post that two counties in southeastern New Mexico – Lea and Eddy – now account for 78 percent of oil produced on U.S. onshore federal lands. It’s a stunning, unprecedented dominance by such a compact land footprint.

The reasons for this dominance are no secret: Lea and Eddy counties sit atop the heart of the prolific Delaware Basin, which makes up the western half of the greater Permian Basin region.

While the Delaware does extend south into Texas, the federal government owns very little land in the Lone Star State outside of its numerous military installations. It’s a different story in Lea and Eddy, where the feds own more than 60% of the acreage in Eddy County and roughly 30% in Lea. (RELATED: Record Oil Deal’s Benefits Go Beyond Big Business)

New Mexico’s Lea & Eddy counties account for 78% of federal onshore oil production (1.3M barrels/day) — another reason why @BLMNational‘s recent $4 billion lease sale on these lands was so historic. Opening this area to further development will help drive American energy… pic.twitter.com/WIJmkQ36qf — American Petroleum Institute (@APIenergy) June 1, 2026

New Mexico’s Lea & Eddy counties account for 78% of federal onshore oil production (1.3M barrels/day) — another reason why........

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