New Mexico oil production improvements cause economic boom

SANTA FE, N.M. (AP) - An economic boom in southeast New Mexico has been attributed to skyrocketing oil production.

The Albuquerque Journal reported Friday that New Mexico’s revenue exceeded projected levels allowing lawmakers to authorize a $663-million spending increase for the budget year that started in July.

Officials say the 11% increase is expected to be used toward teacher salary increases, education spending, highway repairs and construction.

Officials say improvements to drilling techniques made New Mexico the nation’s third-highest oil producing state and contributed to mass production in the Permian Basin about 290 miles (467 kilometers) from Albuquerque.

Officials say revenue levels came two years after a steep decline forced lawmakers to cut spending.

Economists are expected to release official revenue estimates later this month.

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Information from: Albuquerque Journal, http://www.abqjournal.com