Jobs and Local Economy

The Permian Basin creates thousands of jobs every year that support families and local businesses across West Texas and southeast New Mexico, with a long tail of stimulus throughout the entire U.S. economy and across all major industries.

The Perryman Group estimates that, including multiplier effects, the total annual economic benefits of Permian oil and gas activity include $129.2 billion in gross product and 508,800 jobs in Texas, $17.2 billion in gross product and 110,900 jobs in New Mexico, and $153.2 billion in gross product and over 673,900 jobs across the United States.

This creates activity in supply chains that run through every state and spreads across industries including agriculture, mining, utilities, construction, manufacturing, wholesale and retail trade, transportation and warehousing, information, financial activities, business services, and health services.

The Permian Basin punches above its weight in contributing to the economies of Texas and New Mexico. Permian Basin counties in Texas represent just 1.6% of the state’s population, yet contribute up to 7.8% of Texas private-sector gross product. In New Mexico, Eddy and Lea counties only comprise 6.3% of the state’s population, but contribute 21.3% of New Mexico’s private-sector gross product.35

The Perryman Group estimated the total economic impact of the Permian Basin in 2050 under scenarios reflecting varying growth rates, oil prices, incentives, and climate policy. Depending on the assumed scenario, the projected 2050 impact of the Permian Basin (in constant 2021 dollars and including multiplier effects) was found to be $146 billion to $220 billion in gross product and 557,566 to 778,270 jobs in Texas, $19 billion to $29 billion in gross product and 121,553 to 169,668 jobs in New Mexico, and $173 billion to $260 billion in gross product and 738,580 to 1,030,935 jobs for the United States.

The Permian Basin will continue to be a force in job creations and economic growth for decades to come.

Projected 2050 Permian Basin Impact for Gross Product and Jobs

Current Projected