PERMIAN BASIN (YourBasin) – In a study from the Permian Basin Petroleum Association developed with the Texas Taxpayers and Research Association shows that through tax revenues and royalties in the oil and gas industry, the Basin paid close to $9 billion dollars.
“We wanted to look at what does this region contribute to the state. Funds that are spent everywhere across the state not just funds that come back to the Permian Basin,” says PBPA Executive Vice President Stephen Robertson.
According to the report, if the Texas economy did not have that money, Texans on average would pay $937 or higher in taxes for a family of three.
“Just in those tax revenues and royalties in themselves, it was able to save Texans 300 dollars each last year that other wise they would have had to pay into the system to be able to provide the services that the state usually provides,” says Robertson.
Not only have Texans put money back into their savings, with the massive contributions, Texas was also able to spend an extra $1 billion in public education.
Though this economic engine has taken a blow from the dagger and drastic demand levels dropping, cautious optimism begins to drill in the minds of people as Texas begins to open.
“As the state of Texas looks at recovering and regrowing our state economy and getting out of the whole we are in today economically, recovery in the Permian Basin will accelerate that far fast than a lot of other areas in the state,” says MORTAN President James Beauchamp.
Though with drilling rigs down below 200 in the Permian Basin, the region still stays ahead of the rest of the state by more than double in 2019.
“For the most part over the last 10, 12 years, 50% of the rigs in the state of Texas have been located in the Permian Basin. In general, it was about a quarter of them in the United States are located here,” says Beauchamp.
Since 2014 oil production has increased by 140% in the Basin while the rest of the state has remained steady on a flat line. Also, natural gas production has increased by 167% while declining 17% of the rest of the state.
The Basin’s oil and gas production is concentrated in a few key counties with Midland County leading the way but not by much as Reeves County is second.