"It seems the regulation in New Mexico has had an impact without hurting business"
Assuming that oil has some net affect on humanity -- pros and cons. Then we need to consider the net affect of oil produced by texas on humanity, and consider how that net affect is changed with more regulation.
Simply saying "yeah it seems like New Mexico doin real good with more laws" is extremely dangerous, because most regulation DOES harm and destroy market affects and competitive businesses. The authors on the study here should AT LEAST report with due diligence on this before requesting for increased regulation and attempting to sway public opinion -- potentially having a net NEGATIVE affect on humanity.
One possible example of not considering the net negative affect of regulation, is, for example, if there are many competing energy companies in texas, and there is a consumer demand for more responsible operations, then those competing energy companies are forcing each other to tighten their operations wrt environmental impact. However, if regulation destroys small producers and benefits big corporations, then we would see LESS competition and LESS Priority from companies to tighten their operations, negatively affecting the environment.