Oil and gas activities drive economic growth in the Texas portion of the Permian basin, but so do some other industries, according to a recent report on regional demographics from the Texas Independent Producers and Royalty Owners Association (TIPRO).
Along with the oil and gas industry and its related activities, some of the Permian basin’s strongest employment numbers come from health care, retail, and construction industries as well as local governments, the report said.
“It’s important to understand the various market trends and their impact on the economy, and to illustrate the contributions of the energy industry,” said TIPRO Pres. Ed Longanecker, adding that the report also was intended to help promote more economic growth.
TIPRO’s report did not focus specifically on oil and gas demographics and stopped short of making any recommendations, Longanecker said. Meanwhile, TIPRO works with the Permian Basin Petroleum Association, Permian Strategic Partners, and others to guide Texas state legislation and partnership initiatives.
“When you think of West Texas, you think of oil and gas,” Longanecker said. “It’s an important part of our history, of our economy, of the fabric of Texas. But there are other strong industrial sectors. These sectors are all intertwined, they’re important to each other. It’s important to show the other growing sectors and what they need for continued growth.”
Study highlights
In 2018, total population in the Texas Permian basin region totaled slightly more than 2 million. The Texas Permian basin covers 61 Texas counties and extends into New Mexico. TIPRO used the same criteria as the Texas Railroad Commission to define the Texas portion of the Permian basin.
Study highlights included the following:
• The Permian basin’s residential population rose 3.3% during 2013-18, adding 65,942 residents. Another 47,000 people are expected in the Texas Permian basin by 2023.
• Midland County has the highest percentage of occupied housing units (93.2%), followed by El Paso County (90.8%), Ector County (90.3%), Tom Green County (89.8%), Gaines County (89.1%), and Crane County (88.6%).
• The region had 477,378 millennial residents (ages 20-34) in 2018, slightly above the US average of 423,506 for an area the size of the Texas portion of the Permian basin.
• Racial diversity is high, with 1.4 million racially diverse residents compared with the national average of 803,027 for a similar-sized area.
• The top three industries in 2018 in the Texas Permian basin were education and hospitals, restaurants and other eating establishments, and oil and gas support activities.
• During 2013-18, the number of jobs increased slightly in the Texas Permian basin to 966,657 from 902,908.
Permian basin trends
Longanecker said West Texans already are familiar with the ups and downs of oil prices and what a downturn can mean for their communities. TIPRO is interested in learning what else can influence the economy.
“Monitoring trends in the Permian basin region is important in understanding the market factors that impact the economy and our fellow Texas citizens,” he said.
TIPRO’s analysis also examined the next generation of college graduates from the Permian basin to serve the regional work force. In 2017, a total of 34,555 people graduated in the Texas Permian basin. The highest share of graduates were liberal arts and sciences-liberal studies, registered nursing, and medical or clinical assistants.
Separately, TIPRO issued its 2019 State of Energy Report in February. That report noted statewide oil production set a record at 1.54 billion bbl in 2018, surpassing a 1973 record of 1.28 billion bbl.
TIPRO represents about 3,000 independent oil and natural gas producers and royalty owners throughout Texas. Members include small businesses to large, public independent producers as well as mineral owners, estates, and trusts.
