February 25th 2016 - Written by: Ruiz

Using the Price of West Texas Intermediate Oil to Estimate the Price of New Mexico Oil

Oil and natural gas production is subject to royalties and taxes. The State of New Mexico Oil and Natural Gas Administration and Revenue Database (ONGARD) service center collects royalty and tax fillings for the State Land Office and the Taxation and Revenue Department. However, there is at least a three month lag from when the sale occurred, to when it was reported for tax purposes, to when it will be reported in the ONGARD database. So, if there is a need for the current price of New Mexico oil, then the previous method to calculate it will not suffice. However, since the price of West Texas Intermediate (WTI) oil and the price of New Mexico oil move in tandem and the price of WTI is published daily, then through regression, we can estimate the current price of New Mexico oil. The results from regressing the price of New Mexico oil… View Full Post

 February 23rd 2016 - Written by: Julian Baca

Initial Impacts of Global Oil Supply & Prices on New Mexico Activity

New Mexico oil and gas production reached an all-time high last year, more than doubling from approximately 5 million barrels per month in 2009 to over 13 million barrels per month by the middle of 2015. Record high production has contributed to healthy tax revenue collections in recent years and has been a boon for economic activity in New Mexico’s oil producing regions, while also making an important contribution to statewide growth. Last month the global oil over-supply condition and growth concerns in China and other important economies pushed prices to the lowest level seen in twelve years. The decline was so steep, oil fell more than $75 in an eighteen month period. Since global demand growth is not sufficient to work off excess supply, the World’s oil producing nations have sought to cooperate on easing the oil glut in order to stabilize prices; negotiations have helped to somewhat counter… View Full Post

 February 18th 2016 - Written by: Ruiz

How to Calculate the New Mexico Price of Oil

The prices of Brent and West Texas Intermediate (WTI) oil are widely published, but the price of New Mexico oil is not. However, the data necessary to calculate it are available as is demonstrated in this blog. The State of New Mexico tracks oil and gas production, royalties, and taxes and publishes the data on the internet in the Oil and Natural Gas Administration and Revenue (ONGARD) Database. To access the data, you can first navigate to the website http://web.ongard.state.nm.us. Once on the site, navigate through the following steps: Tax and Revenue Department: TRD Reports TAX RESEARCH COUNTY VOL/VAL REPORT BY SALE PERIOD (PCVV) At this point, you will reach the query page. In the PRODUCT CODE options, select 01-Oil (BBLS), 02-Condensate (BBLS), 05-Other Liquid Hydrocarbons (BBLS), and 14-Oil Lost. Select “Output Results in Excel” to download the query into an Excel spreadsheet. Once the data is in Excel, select the… View Full Post

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