Study: ExxonMobil investment to generate $64 billion for state

CARLSBAD — ExxonMobil’s development of assets in the Permian Basin is estimated to provide $64 billion benefiting New Mexico over the next four decades, according to a report released by the company Friday.

The company said its investment in the Permian will represent $55 billion in capital expenditures in Eddy and Lea counties.

“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,” ExxonMobile Chairman and CEO Darren Woods said in a news release.

“We will be a significant, longterm economic contributor to the state of New Mexico and will work hard to be a trusted member of the community.”

The figures are the result of a study conducted by Impact Data Source for the company, which assumes the price of a barrel at $40.

Approximately $44 billion of the estimated revenue for the state will be the result of new oil and gas developments.

The study estimated another $8.5 billion will be generated by state oil and gas severance taxes.

It also estimates that $1.8 billion in net tax revenue will be contributed to communities in southeastern New Mexico where ExxonMobil operates.

Gov. Michelle Lujan Grisham said the study results mean great things for New Mexico’s future economic stability.

“The benefit to this state’s bottom line, as represented by investments from companies like Exxon Mobil, has been enormous,” Lujan Grisham said in a news release.

Last year, New Mexico’s budget saw a surplus of $1 billion generated largely by oil and gas operations in southeastern New Mexico.

According to the study, the company is expected to support over 14,000 direct jobs.