Exxon Explains Benefits of US Permian Splurge
US major ExxonMobil’s major increase in its upstream activities in Permian Basin oil and gas production will generate revenues worth about $64bn for New Mexico over the next 40 years, according to a new report.
“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 CEO Darren Woods in a May 17 statement. “We will be a significant, long-term economic contributor to the state of New Mexico and will work hard to be a trusted member of the community.”
The state government will receive an estimated $62bn in net fiscal benefits, $44bn of which will come from new leases and royalties, according to the research, produced by Impact Data Source. About $8.5bn will come from state oil-and-gas severance taxes. The research findings assume an oil price of $40/barrel.
As part of ExxonMobil’s Permian Basin growth plans, the company plans to expand its operations to produce more than 1mn barrels of oil equivalent/day as early as 2024. This will require about $55bn in capital expenditures in Eddy and Lea counties, providing significant economic growth benefits to the state, said ExxonMobil in its statement.