A report recently released by the Permian Strategic Partnership notes that the Permian Basin collected a record sum of tax revenue from the oil and gas industry, summing up to $181.8 Billion In GDP. The industry has also been credited with contributing 786,000 Jobs To U.S. Economy.
“This report confirms what many of us already knew: the Permian Basin is a major contributor not only to the Texas and New Mexico economies but to the national and global economy as well,” Tracee Bentley, President and CEO of the Permian Strategic Partnership, said. “Through continued investment, strategic planning, and foresight, the Permian Basin has created opportunities for hundreds of thousands of Americans and their families.”
The region holds approximately 105 billion barrels of recoverable oil and 229 trillion ft3 of recoverable natural gas. By 2025, it is projected to generate 50% of U.S. oil production.
The Perryman Group estimates the Permian Basin to generate $325 billion in gross product and create more than 1,200,000 jobs for the national economy by 2050. According to the Economic Impact report, the Permian is also credited with collecting $24.5 billion in taxes across Texas and New Mexico.
Within the last year, oil and gas production has doubled across both states, making it possible to allocate $2.1 billion to Texas’ Permanent University Fund, 35% of New Mexico’s state budget, equating to $5.8 billion.
“~3% of US wind capacity and ~8% of US total solar plant capacity,” the site states. “Investments in both wind and solar are growing rapidly in the Permian Basin."
The funds are allocated towards road improvements, tax relief, public schools and teachers, police and fire departments, community hospitals, universities, and other essential services.
“Our fiscal success will enable us to double down on the investments we know are working and explore innovative new strategies that move the needle and move New Mexico up in the rankings,” New Mexico Governor Michelle Lujan Grisham said regarding New Mexico’s growing state revenues presenting an opportunity for investment in public education, healthcare, housing, and public safety sectors.”
Despite only housing 1.6% of Texas’s population, the market accounts for 8.2% of the state’s private sector GDP. The same applies to New Mexico, where only 9.3% of the state’s population resides, but its industry contributes 26.5% of the state’s GDP.
“The Permian Basin continues to be America’s economic powerhouse and further strengthens our nation’s national security, economic security, and energy security,” Don Evans, Permian Strategic Partnership Chairman said. “Our region is the world’s largest secure supply of energy. Texas and New Mexico must persist in their commitment to invest in and expand the region’s infrastructure, further empowering the energy industry to furnish the indispensable resources that fortify our nation’s robust economy.”