ExxonMobil Corp.’s development of Permian basin resources in New Mexico will generate $64 billion in net economic benefits for the state and local communities over the next 40 years, according to a study conducted for ExxonMobil by Impact Data Source.
The research findings assume an oil price of $40/bbl.
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. About $8.5 billion will come from state oil and gas severance taxes.
ExxonMobil’s activities will generate an average of 4,100 direct jobs/year for New Mexicans for the next 40 years, the study estimates, generating some $29 billion in new wages, salaries, and benefits.
ExxonMobil plans to spend $55 billion in Eddy and Lea counties as part of its plan to expand Permian basin operations to produce more than 1 million boe/d as early as 2024.
Southeastern New Mexico communities where ExxonMobil operates will receive an estimated $1.8 billion in net tax revenue—more than 65% of which will flow to the state’s general fund, the study said.