Already a global energy powerhouse, the Permian Basin is proving to be an economic powerhouse as well.
A new economic impact report issued Tuesday by the Permian Strategic Partnership and The Perryman Group details the impact of a region that holds just 1.6% of the Texas population but provides 7.8% of the state’s private sector gross domestic product.
By 2050, the report finds, the Permian Basin’s national economic impact could range from $173 billion to $260 billion in US gross domestic product and from 738,580 to 1,030,935 jobs.
“It is both a pleasure and a privilege to be part of this important effort,” Economist Ray Perryman told the Reporter-Telegram by email about the project. “The Permian Basin is a key to the energy future of the world and will play a vital role in improving the lives and economic prospects of people around the globe. It is also a huge engine of business expansion and growth.”
He commended the partnership for its work detailing the region’s importance and in investing in and attracting investment in infrastructure the Permian Basin needs to grow and fulfill its potential as an economic engine.
“PSP is helping communicate this critical message across a broad spectrum and promoting the initiatives needed to assure the region realizes its full potential,” Perryman continued.
For example, the report found an additional $1 billion invested in Permian Basin road infrastructure would result in:
- 4,500 fewer fatalities and injuries
- 2.1 million fewer hours in traffic delays
- $1.5 billion in economic benefits from increased safety and fewer delays.
“The PSP is committed to providing current data about not only the Permian Basin’s impact on the Texas economy but also on the strategic role of our region in an ever-evolving geopolitical landscape,” said Tracee Bentley, president and CEO of the PSP in a statement. “Texas leaders have a historic opportunity to invest in the future of our state and country and keep energy abundant by investing in Permian Basin infrastructure.”
According to the new report, the Permian is currently responsible for:
- $11.8 billion in 2021 Texas tax collections
- 508,800 industry jobs in Texas
- $1.9 billion in 2022 mineral revenue contributions to the Texas Public University Fund.
- $3.58 billion to the Texas State Highway Fund in 2023e and $3.58 billion to the Texas Rainy-Day Fund in 2023; the highest amount ever recorded.
The New Mexico portion of the Permian Basin holds 6.3% of the state’s population but contributes up to 21.3% of the state’s gross domestic product.
It is currently responsible for:
- 110,900 jobs in New Mexico
- $3.8 billion in 2021 New Mexico tax collections
