HART ENERGY: The Permian Basin’s economic impact on Texas and the nation is growing—thanks to both its natural and renewable energy resources.
A new report from The Perryman Group and the Permian Strategic Partnership (PSP) claims that by 2050, the region is expected to contribute up to $260 billion in gross product and more than 1 million jobs to the nation’s economy, which is roughly double current employment.
“Over the last century, the Permian Basin has been the lifeblood of our nation—providing vital resources, jobs and economic opportunities,” commented Don Evans, PSP Chairman and Former U.S. Commerce Secretary during the George W. Bush Administration.
The Permian Basin is one of the top energy-producing regions in the world, with abundant natural and renewable resources. With 94.5 billion barrels of known recoverable oil and 213.3 trillion ft3 of known recoverable natural gas, the Permian Basin helps fuel the state and national economies.
In 2021, the Permian Basin contributes $153.2 billion and nearly 700,000 jobs to the U.S. economy. According to the new report, the Permian Basin is also 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; and
- $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 Permian Basin is the largest secure supply of energy in the world,” Evans continued in a statement. “Texas should continue to invest in and expand the infrastructure of the region. This will enhance the ability for the energy industry to provide the energy resources necessary to keep our nation’s economy strong and country secure.”
Despite being home to just 1.6% of the Texas population, the Basin is responsible for 7.8% of the state’s private sector GDP, the two groups noted.
“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.
While the Permian Basin’s contribution is substantial, there is still room for improvement, the two groups added.
According to the report, an additional $1 billion in investments in Permian Basin infrastructure could result in:
- 4,500 fewer fatalities and injuries;
- 2.1 million few hours in traffic delays; and
- $1.5 billion in economic benefits from increased safety and fewer delays.
“Texas leaders have a historic opportunity to invest in the future of our state and country and keep energy abundant by investing in Basin infrastructure,” Bentley added in her statement.