BBER Publications

Document Type

Technical Report

Publication Date



New Mexico State Land Office


University of New Mexico, Bureau of Business and Economic Research


The New Mexico State Land Office (SLO) contracted with the UNM Bureau of Business and Economic Research (BBER) for assistance and guidance in improving its process for estimating and forecasting revenues from SLO oil and natural gas leases. The author of this study discusses and analyzes the impact that advances in horizontal drilling technology, and the increasing use of multi-stage hydraulic fracturing, have had on New Mexico's oil and natural gas revenues. She begins with a brief historical background on horizontal drilling and the NM oil and gas industries, followed by an overview of data on production and revenues for both horizontal and vertical wells from 1994 through 2010. The author also discusses horizontal drilling and production forecast methods used in five other states: Colorado, Montana, North Dakota, Texas, and Wyoming. The report concludes with a discussion of complexities of these data. Includes a bibliography; illustrated with color charts and tables.


See related BBER report, "Oil and Gas Revenue Forecasting: New Mexico State Land Office" (2011).