Permian Basin Booms to Become Economic Powerhouse Supporting Millions

The Permian Basin in West Texas and southeastern New Mexico has undergone a remarkable transformation from a 'graveyard' of oil production to a thriving economic powerhouse. A century ago, early observers dismissed parts of the landscape as unimpressive, but today it is at the center of one of the country's most important energy-producing regions.

According to the Permian Basin Petroleum Association (PBPA) 2024 report, the basin supports 853,924 jobs nationwide, while activity connected to it generated about $18.2 billion in taxes for Texas and New Mexico. The economic chain created by the basin reaches far beyond oil wells and drilling rigs, supporting businesses, public revenues, and services in communities connected to the energy industry.

The region's economic footprint is considerable, accounting for 25.9% of private-sector gross domestic product in New Mexico, despite representing only 9.2% of the state's population. In Texas, the basin accounts for 8.1% of private-sector GDP, despite containing just 1.6% of the state's population.

The scale of the resource beneath the basin remains a central part of the picture. The report estimates that the Permian contains 92.7 billion barrels of recoverable oil and about 211 trillion cubic feet of recoverable natural gas.