Study details economic impact of ExxonMobil’s Permian Basin operations in New Mexico
A new study says ExxonMobil’s development of Permian Basin resources in New Mexico will generate about $64 billion in net economic benefits for the state and local communities over the next 40 years.
The study found that the state government will receive an estimated $62 billion in net fiscal benefits, $44 billion of which will come from new leases and royalties, according to the study conducted for ExxonMobil by Impact Data Source. Further, about $8.5 billion will come from state oil-and-gas severance taxes.
“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 Woods, chairman and chief executive officer of Exxon Mobil Corporation, said. “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 development activities will also generate an average of 4,100 direct job opportunities in New Mexico per year for the next 40 years, the study estimates. Operations are anticipated to generate a total of approximately $29 billion in new wages, salaries, and benefits.
“The benefit to this state’s bottom line, as represented by investments from companies like ExxonMobil, has been enormous,” New Mexico Gov. Lujan Grisham said. “My administration has been and will continue to be responsive to changes in the energy sector and the need for meaningful regulation and diversification as a means of ensuring a sustainable future – for our children, their education, the infrastructure that will support our collective future and more.”
ExxonMobil plans to expand its operations in the Permian Basin to produce more than 1 million oil-equivalent barrels per day as early as 2024. This will require about $55 billion in capital expenditures in Eddy and Lea counties, providing significant economic growth benefits to the state.
The tax revenues generated by these operations would send billions of dollars toward higher education, health and human services, public schools, and state government services.
