ExxonMobil Permian Development to Provide $64 Billion in Benefits to New Mexico: Study
May 17 2019 - 10:00AM
Business Wire
- Study evaluates planned development
activities over the next 40 years
- Research shows New Mexico to receive an
estimated $62 billion in net fiscal benefits
- Local communities to gain an estimated
$1.8 billion in economic growth
ExxonMobil today said a new study estimates the company’s
development of Permian Basin resources in New Mexico will generate
approximately $64 billion in net economic benefits for the state
and local communities over the next 40 years, creating thousands of
new jobs and providing increased funding for education, health and
human services and infrastructure improvements.
“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 Darren W. Woods,
chairman and chief executive officer of Exxon Mobil Corporation.
“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 $62 billion in
net fiscal benefits, $44 billion of which will come from new leases
and royalties, according to the research. About $8.5 billion will
come from state oil-and-gas severance taxes, said the study which
was conducted for ExxonMobil by Impact Data Source. The research
findings assume an oil price of $40 per barrel.
From an employment perspective, ExxonMobil’s activities will
generate an average of 4,100 direct job opportunities for New
Mexicans per year for the next 40 years, the study estimates. Over
the next 40 years, the company’s operations are expected to
generate a total of approximately $29 billion in new wages,
salaries and benefits.
New Mexico Governor Michelle Lujan Grisham said the industry is
crucial for residents and expressed optimism about the
projections.
“The benefit to this state’s bottom line, as represented by
investments from companies like ExxonMobil, has been enormous,”
Gov. Lujan Grisham said. “My administration has been and will
continue to be responsive to changes in the energy sector and the
need for meaningful regulation and diversification as a means of
ensuring a sustainable future – for our children, their education,
the infrastructure that will support our collective future and
more.”
As part of ExxonMobil’s Permian Basin growth plans, the company
plans to expand its operations to produce more than 1 million
oil-equivalent barrels per day as early as 2024. This significant
growth will require about $55 billion in capital expenditures in
Eddy and Lea counties, providing significant economic growth
benefits to the state.
Southeastern New Mexico communities where ExxonMobil operates
will receive an estimated $1.8 billion in net tax revenue, said the
Impact Data Source study.
More than 65 percent of those estimated tax revenues will flow
to the state’s general fund.
At current funding levels, those contributions would translate
into:
- $6 billion for higher education,
which is enough to pay college tuition for more than 827,000 New
Mexico students
- $10 billion for health and human
services, which is equal to the salaries of more than 146,000
nurses
- $18 billion for New Mexico’s public
schools, which is equal to the salary of more than 309,000
elementary school teachers
- $6 billion for other state
government services, which is almost equal to the entire 2018
New Mexico state budget
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. For more information, visit
www.exxonmobil.com or follow us on Twitter
www.twitter.com/exxonmobil.
Cautionary Statement: Statements of
future events or conditions in this release are forward-looking
statements. Actual future results, including project plans, timing,
and costs; capital expenditures; future production rates and
timing; and economic impacts could differ materially due to changes
in market conditions affecting the oil and gas industries or
long-term price levels for oil and gas; political and regulatory
developments, including changes in environmental laws and
regulations and obtaining necessary permits and approvals; the
ability to implement operating and management plans as intended,
including timely completion of construction projects; the
occurrence and duration of economic recessions; technical and
operating factors; the outcome of commercial negotiations; the
actions of competitors; and other factors discussed in this release
and under the heading “Factors Affecting Future Results” on the
Investors page of ExxonMobil’s website at www.exxonmobil.com.
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