The Permian Basin supported 853,924 U.S. jobs in 2023, including 629,163 in Texas and 145,469 in New Mexico, the Permian Strategic Partnership shares in its latest Power of the Permian Economic Report.

Moreover, it predicts, the region will need new workers to fuel anticipated growth and replace retirees. From 2023 to 2040, demand for workers will increase from 365,102 to 481,018, or about 32%, the report details.

“Thanks to years of dedicated investment, strategic planning and foresight, the Permian Basin has made the American dream a reality for hundreds of thousands who move here in search of economic opportunity,” says Tracee Bentley, the organization’s president and chief executive officer. “The Permian Strategic Partnership remains committed to supporting the Basin, hand-in-hand with every hard-working citizen who calls our region home, to fully realize the basin’s economic potential.”

In addition to providing jobs, Permian Basin activity generates tax revenue that supports vital government functions such as road improvements, public schools and teachers, police and fire departments, community hospitals and universities, the PSP notes. Across Texas and New Mexico, the basin contributed $18.2 billion in tax revenue last year, including at least $5.3 billion supporting education, the group details.

According to the data, the Permian Basin is a key pillar of the New Mexico and Texas economies. “Although the Permian Basin is home to only 9.2% of New Mexico’s population, the region produces over a quarter, 25.9%, of New Mexico’s private sector GDP,” the PSP details. “Likewise, in Texas, the Permian Basin accounts for 8.1% of the state’s private sector GDP despite being home to only 1.6% of Texas’ population.”

Among the world’s major onshore producing basins, the Permian has the second-lowest carbon intensity for every barrel of oil it produces, the organization adds.

“The Permian Basin provides indispensable resources to energy security, making significant contributions to our nation’s robust economy every year,” reflects Don Evans, the PSP’s chairman. “As the world’s largest secure energy supply, our region is fundamental to our national, economic and energy security. Texas and New Mexico can promote further growth and support the American economy in collaboration with the energy industry through investment and expansion of our region’s infrastructure.”

The full report, which provides more details on the industry’s contribution to GDP and the region’s success at deploying wind and solar power, is available on the Permian Strategic Partnership’s website.

Recent Job Growth

In its newest monthly report on oil field jobs, the Energy Workforce & Technology Council finds signs of employment growth across the industry. In June, the U.S. oil field services sector added 968 jobs, according to preliminary data from the BLS and the council’s analysis.

This represents the first time in 2024 that employment growth outpaced 2023’s growth by almost 450 jobs, the council observes. In total, Energy Workforce estimates that the energy services sector supports 647,636 jobs across the United States.

At the national level, the U.S. economy added 206,000 jobs in June. However, the unemployment rate climbed to 4.1%, the highest level since October 2021, the council relates. It says the energy service sector’s growth is particularly notable amid the broader economic context of rising unemployment, and may suggest a rebound in energy-specific job markets.

“This uptick in job growth within the oil field services sector is a positive indicator for American energy production,” comments Energy Workforce President Molly Determan. “Despite economic challenges spanning the national workforce, our sector continues to demonstrate robust growth, driven by advancements in technology and the continued global demand for American oil and gas.”