Oil production is one of New Mexico’s leading industries and therefore an essential aspect to its economy. For New Mexico in particular, a thriving oil and gas production will directly means a striving state, and the need for oil and gas insurance remains consistently important. There have been many changes in the oil and gas industry as of late, and understanding these new developments is the key to creating great work and protecting your business from industry-specific liabilities.
The next year and a half has a stable outlook for the oil and gas industry. Earnings are expected to rise approximately 5%, even as companies look for greater returns on upstream investments. This return to positive cash flow could be influence in large European companies’ decisions in reinstating cash dividends.
In this year, the exploration & production sector is expected to raise 10%, which will create an increase in the oil production volumes with the assistance of higher capital spending. Service-cost inflation may be rising in specific markets.
It is crucial to have oil and gas insurance that supports the industry’s growth, and an understanding of how to protect the value of the business.
Economy as a Whole
New Mexico Oil and Gas Association president Ryan Flynn claimed that the state’s current position within the oil and gas industry is due to New Mexico’s “attractive business environment.” He also stated, “All New Mexicans benefit from a strengthened economy anchored by oil and natural gas. And we can expect these trends to hold up for the foreseeable future as market prices continue to steady and if New Mexico remains a favorable place for oil and gas producers to do business.” This means New Mexico should see more job opportunities arise and an increase in funding for the schools and state budget.
New Mexico at its Finest
It is clear that New Mexico is moving up in the oil and gas rankings. At New Mexico’s current oil and gas rate, it is expected to set an annual production record. The state’s energy companies investment of billions of dollars is paying off. The state’s record high production is funneling more revenue into the state’s coffers.
New Mexico’s economists predict that income will continue to surpass current spending by almost 200 million dollars, largely due to the mend oil and gas sectors.
Oil and gas service contractors, oilfield truckers, and suppliers in New Mexico should all look to have strong insurers that work with the specialized needs of the industry.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.