Midland, TX (Aug. 29, 2023) — The Permian Basin's economic impact continues to gain momentum, bringing promising news for Texas, New Mexico and the entire nation. According to the latest report by the Permian Strategic Partnership (PSP), the Permian Basin had a record year for tax revenue collected from the oil and gas industry.
These funds support tax relief, road improvements, public schools and teachers, police and fire departments, community hospitals, universities, and other essential services. The Perryman Group projected the Permian Basin to generate $325 billion in gross product and provide more than 1.2 million jobs for the nation's economy by 2050.
"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."
According to the Economic Impact report, the Permian is also responsible for:
- $24.5 billion in taxes collected across Texas and New Mexico
- Doubling the amount of oil and gas severance and production taxes across both states compared to the previous year
- $2.1 billion to Texas’ Permanent University Fund and $2.1 billion to Texas’ Permanent School Fund, more than double the previous year.
- 35% of New Mexico’s state budget ($5.8 billion) and more than 1/3 of the total funding for New Mexico’s schools.
- ~3% of US wind capacity and ~8% of US total solar plant capacity. Investments in both wind and solar are growing rapidly in the Permian Basin
The Permian Basin is a renowned leading global energy-producing region with abundant natural and renewable resources. With 105 billion barrels of recoverable oil and 229 trillion ft3 of recoverable natural gas, the Permian Basin helps fuel economies worldwide. By 2025, the Permian Basin will be responsible for generating 50% of U.S. oil production. Despite being home to only 1.6% of Texas's population, the Permian Basin accounts for 8.2% of the state's private sector GDP. Same goes for New Mexico, only 9.3% of the state’s population lives in Lea, Eddy and Chaves counties, but the Permian Basin accounts for 26.5% of the state’s GDP.