ExxonMobil estimates $64 billion in economic benefits for New Mexico

New Mexico News

MIDLAND, TX – JANUARY 20: A pumpjack sits on the outskirts of town at dawn in the Permian Basin oil field on January 21, 2016 in the oil town of Midland, Texas. Despite recent drops in the price of oil, many residents of Andrews, and similar towns across the Permian, are trying to take the […]

On Friday, ExxonMobil released a study that estimates the company’s development will provide $64 billion in economic benefits for New Mexico over the next 40 years. 

According to the company’s survey by Impact Data Source, southeastern New Mexico communities will receive an estimated $1.8 billion in net tax revenue. The state will receive an estimated $62 billion in net fiscal benefits, with $44 billion of that coming from new leases and royalties according to research by the company.

The study, which evaluates planned development activities, states that the company plans to expand operations at the Permian Basin, hoping to produce over 1 million oil-equivalent barrels a day by 2024.

Research findings are based off an oil price of $40 per barrel.

“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,” said chairman and chief executive officer of Exxon Mobil Corp. Darren W. Woods. 

Governor of New Mexico Michelle Lujan Grisham is optimistic about the projected economic outcomes and explained the importance of the company’s impact.

“The benefit to this state’s bottom line, as represented by investments from companies like ExxonMobil, has been enormous. 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,” said Gov. Lujan Grisham in a statement. 

It is projected that ExxonMobil activities will generate around 4,100 jobs for New Mexicans per year for the next 40 years. Over that same amount of time, operations are estimated to generate around $29 billion in salaries, benefits, and new wages. 

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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