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Permian to contribute $350bn and 1,200,000 jobs to US economy by 2050

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Permian to contribute 0bn and 1,200,000 jobs to US economy by 2050

The basin currently generates $18.2bn of tax revenue across Texas and New Mexico. Credit: e-crow via Shutterstock.

The US’s Permian Basin is still an important source of economic activity for Texas, New Mexico and the rest of the country, supporting a raft of related infrastructure.

The 2024 Economic Report from the Permian Strategic Partnership (PSP) has detailed the importance of the Permian for the region, generating around $350bn in gross product, as well as providing 1,200,000 jobs for the US economy by 2050.

According to the report, the region supports infrastructure developments such as roads, public schools, police and fire departments, community hospitals and universities.

As such, said the report, the  multiplier effect from the initial activity, which is oil and gas drilling, is high. 

The PSP is a coalition of 31 Permian Basin energy companies and higher education institutions to “address current and future challenges to the responsible development of the vast oil and natural gas resources” in the region, according to the organisation’s website.

The report also highlights how the area has the “second lowest production of carbon dioxide emissions per barrel of oil” among the major onshore producing basins across the world.

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Don Evans, chairman of Permian Strategic Partnership, said: “The basin provides indispensable resources to energy security, making significant contributions to our nation’s robust economy every year.”

He added: “As the world’s largest secure energy supply, our region is fundamental to our national, economic and energy security. Texas and New Mexico can promote further growth and support the American economy in collaboration with the energy industry through investment and expansion of our region’s infrastructure.”

The basin currently generates $18.2bn of tax revenue across Texas and New Mexico.

However, in 2023’s report, published just under a year ago, the PSP claimed the region generated $24.5bn in tax revenue. There is no explanation in the new report as to why tax revenues have fallen.

According to GlobalData, Offshore Technology’s parent company, strong global demand for oil and gas and geopolitical shifts are leading to the further growth and competitiveness of the region.

The region’s crude oil production averaged 5.6 million barrels per day during the first quarter (Q1) of 2024.

The Permian Basin, a large sedimentary basin in the south-western US, is the highest-producing oilfield in the country.


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