American Oil and Gas Reporter - November 2023 - 80

America's economic powerhouse and further
strengthens our nation's national security,
economic security and energy security, "
says PSP Chairman Don Evans.
" Our region is the world's largest secure
supply of energy. Texas and New Mexico
must persist in their commitment to invest
in and expand the region's infrastructure,
further empowering the energy industry
to furnish the indispensable resources that
fortify our nation's robust economy. "
" Our fiscal success will enable us to
double down on the investments we know
are working and explore innovative new
strategies that move the needle and move
New Mexico up in the rankings, " says
New Mexico Governor Michelle Lujan
Grisham, regarding New Mexico's growing
state revenues presenting an opportunity
for investment in public education, healthcare,
housing and public safety sectors.
" Texas is blessed to be home to the
Permian Basin, the nation's most prolific
energy producing region that not only
strengthens our state's thriving economy,
but helps secure America's energy independence, "
says Texas Governor Greg
Abbott. " The vast oil fields of the Permian
Basin have helped create unprecedented
levels of economic success and
opportunity in Texas, keeping our state
the economic engine of America.
" Our continued support of this critical
region will ensure Texans-and Americans-have
the necessary energy to power
their homes, businesses, and growing local
communities, " he adds. " I am proud of the
collaborative work, spurred by the Permian
Strategic Partnership, that the Permian
community is undertaking to support one
of the state's most valuable treasures. "
Securing The Energy Future
According to the PSP report, the Permian
is responsible for:
· $24.5 billion in taxes collected
across Texas and New Mexico;
· Doubling the amount of oil and gas
severance and production taxes across both
states compared with the previous year;
· Contributing $2.1 billion to Texas'
Permanent University Fund and $2.1 billion
to Texas' Permanent School Fund,
more than double the previous year; and
· 35% of New Mexico's state budget
($5.8 billion) and more than 1/3 of the
total funding for New Mexico's schools.
With 105 billion barrels of recoverable
oil and 229 trillion feet of recoverable
natural gas, the Permian Basin helps fuel
economies worldwide, PSP says, and by
2025, the Permian will account for 50%
of U.S. oil production. Despite being home
to only 1.6% of Texas' population, the
Permian accounts for 8.2% of the state's
private sector gross domestic product. The
same goes for New Mexico, the partnership
notes, observing that only 9.3% of the
state's population lives in Lea, Eddy and
Chaves counties, but the Permian Basin
accounts for 26.5% of the state's GDP.
" This report confirms what many of
us already knew: The Permian Basin is a
major contributor not only to the Texas
and New Mexico economies but to the
national and global economy as well, "
says PSP President and Chief Executive
Officer Tracee Bentley. " Through continued
investment, strategic planning and
foresight, the Permian Basin has created
opportunity for hundreds of thousands
of Americans and their families. We at
the Permian Strategic Partnership will
continue our work to help the basin and
all the people who call it home reach its
full economic potential. "
According to the report, Permian Basin
oil output reached 1.85 billion barrels in
2022, and is projected to continue climbing.
Meanwhile, natural gas production reached
7.5 trillion cubic feet in 2022. About 73%
of Texas oil production and 47% of Texas
natural gas production takes place in the
Permian. In New Mexico, 98% of oil production
and 77% of natural gas came
from the Permian in 2022.
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American Oil and Gas Reporter - November 2023

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