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Oil Fueling Eddy County's Economic Future

CARLSBAD, N.M. (AP) — Stakeholders in New Mexico's oil and gas industry, particularly in Eddy County, are bracing for where crude oil prices will land in this new year.

The New Mexico Oil and Gas Association says the state had a record producing year but a drop in prices in 2015 had many wondering if it was the end of a boom.

In the past year, oil has dropped to a seven-year low and a 40-year-old oil export ban was lifted.

Association spokesman Wally Drangmeister says federal agencies are reviewing multiple new regulations for New Mexico and the Carlsbad area specifically.

Drangmeister says the regulations may lead to greater operating costs.

Carlsbad officials say this year's budget is based on oil revenue from last year.