A new economic analysis demonstrates the opportunity that our state has before us thanks to the ongoing energy boom in the Permian Basin.
The study looked at ExxonMobil’s investments in the Permian Basin and estimated that New Mexico will receive $62 billion in net fiscal benefits and local communities will see an additional $1.8 billion in economic growth over the next 40 years.
The economic consulting firm Impact Data Source, which conducted the study, estimated that of the $62 billion, New Mexico will receive $44 billion from new leases and royalties and $8.5 billion from state oil-and-gas severance taxes.
The oil and gas industry supports 100,000 New Mexico jobs and the study said the company’s continued investment in our state will continue to play a key role in that:
ExxonMobil’s activities will generate an average of 4,100 direct job opportunities for New Mexicans per year for the next 40 years, the study estimates. Over the next 40 years, the company’s operations are expected to generate a total of approximately $29 billion in new wages, salaries and benefits.
“The Permian Basin is the engine of America’s energy renaissance and New Mexico residents will see direct economic benefits and opportunities from our planned investments,” Darren W. Woods, chairman and chief executive officer of ExxonMobil, said in a statement. “We will be a significant, long-term economic contributor to the state of New Mexico and will work hard to be a trusted member of the community.”
The company also said it will make significant capital investments in Eddy and Lea counties, which are already home to some of New Mexico’s fastest growing local economies:
As part of ExxonMobil’s Permian Basin growth plans, the company plans to expand its operations to produce more than 1 million oil-equivalent barrels per day as early as 2024. This significant growth will require about $55 billion in capital expenditures in Eddy and Lea counties, providing significant economic growth benefits to the state.
The energy boom in the Permian Basin has already been driving prosperity statewide and delivering enormous benefits to New Mexico, such as an historic $1.1 billion budget surplus, funding for capital outlay projects around the state, and record funding for our K-12 public schools.
This new economic impact study shows that New Mexicans are likely to continue seeing those benefits for decades to come.