New Mexico assets capture attention of oil and gas giants

ALBUQUERQUE, N.M. (AP) — As New Mexico's elected leaders wrangle over raising taxes to plug a budget shortfall, major energy companies have quietly spent more than $13 billion in recent months on assets in the state's oil and gas hot spots. Analysts say the new wave of investment bodes well for the industry being able to generate much-needed revenues for the struggling state over the long haul. Credit rating agency Standard & Poor's Global Ratings on Tuesday predicted a turnaround in economic output for New Mexico this year, pointing to growth in the oil and mining sectors. Texas-based EOG Resources, ExxonMobil and Marathon Oil have already turned their attention to New Mexico, and analysts are expecting more demand going forward. They say one indicator is the rapid increase in the value of land within New Mexico's portion of the Permian Basin.