ECONOMIC IMPACT

OF THE
PERMIAN BASIN

Investment
Versus
Consumption

Natural Gas Production Comparison in Texas

Crude Oil Production Comparison in Texas

Drilling Permits Issued Comparison in Texas

10000
9000
8000
7000

6000
Barnett Shale
5000

Eagle Ford Shale

Permian Basin

4000
3000
2000
1000
0
2005

2006

2007

2008

2009

2010

2011

Undiscovered Oil & Gas Resources

Permian Basin Region

58 or 59 Counties in Texas
1,226,432 Population
(2010 US Census)

1,258,988
(July 2012 Estimate)

IN 2011
$56.2 Billion in Gross Sales
$18.47 Billion in Sales subject to Sales Tax
$1,152,969,642.38 in Sales Tax for the State
$1,304,798,532 in Severance Tax for the State
$954, 493,272 for Permanent University Fund
$316,619, 223 for the Permanent School Fund

$3.7 Billion in Revenue for the State of Texas

Sales and Severance Taxes
Permanent University and School Funds
Local Ad Valorem
$142.6 billion worth of market value ad valorem property
$115 billion in taxable ad valorem property
$464 million in county revenue from ad valorem revenues.

SEVERANCE TAXES
From 2011 to 2012
Annual Severance Taxes generated in the Permian Basin
increased over $200 million
The Permian Basin generated 42% of all Severance Taxes
generated in Texas for those 2 years

2011 $1,304,798,532
2012

$1,515,444,799

ECONOMIC GROWTH-GROSS SALES

Permian Basin
$60,000,000,000

$50,000,000,000

$40,000,000,000

$30,000,000,000

Permian Basin

$20,000,000,000

$10,000,000,000

$0
02 Gross Sales

Permian Basin

02 Gross Sales
$27,873,223,914

06 Gross Sales

06 Gross Sales
$44,837,276,687

11 Gross Sales

11 Gross Sales
$56,201,924,516

STATE SALES AND USE TAXES

Permian Basin
$20,000,000,000
$18,000,000,000
$16,000,000,000
$14,000,000,000
$12,000,000,000

$10,000,000,000

Permian Basin

$8,000,000,000
$6,000,000,000
$4,000,000,000
$2,000,000,000
$0
02 Taxable

Permian Basin

02 Taxable
$8,828,568,735

06 Taxable

06 Taxable
$13,478,262,017

11 Taxable

11 Taxable
$18,447,514,278

Sales Taxes Paid to the

State (6.25%) increased
over $300 million annually
over the last 5 years

AD VALOREM VALUES
160,000,000,000

140,000,000,000

120,000,000,000

100,000,000,000

80,000,000,000

Market Value
Taxable Value

60,000,000,000

40,000,000,000

20,000,000,000

0
2003

Market Value
Taxable Value

2003
65,328,988,933
54,547,038,735

2007

2007
109,561,755,586
91,062,883,571

2011
142,687,586,546
115,072,822,884

2011

AD VALOREM VALUES
County Ad Valorem Levy
500,000,000
450,000,000
400,000,000
350,000,000
300,000,000
250,000,000

County Ad Valorem Levy

200,000,000
150,000,000
100,000,000
50,000,000
0

2003

County Ad Valorem Levy

2003
264,637,210

2007

2007
368,270,627

2011

2011
464,108,998

POPULATION

% Increase
4.00%

PERMIAN BASIN
2.65%

3.50%
3.00%
2.50%

% Increase

2.00%
1.50%

STATE OF TEXAS
3.6%

1.00%
0.50%
0.00%
Permian Basin

Permian Basin
State of Texas

State of Texas

2010 Census
1,226,432
25,145,561

2012 Estimate
1,258,988
26,059,203

ECTOR/MIDLAND CO.
16%

USGS Assessment of Undiscovered Oil & Gas Resources

Gas (BCFG)
60000
50000
40000
30000
20000
10000
0

Barnett Shale
Eagle Ford Shale

Oil (MMBO)

Permian Basin
Barnett
Shale

Eagle Ford
Shale

Permian
Basin

1400

1200
1000
Barnett Shale
800

Eagle Ford Shale

600

Permian Basin

400

NGL (MMBNGL)

200
0
Barnett Shale

2500
2000
Barnett Shale

1500

Eagle Ford Shale

1000

Permian Basin

500
0
Barnett
Shale

Eagle Ford
Shale

Permian
Basin

Eagle Ford Shale

Permian Basin

$3.7 Billion to be Spent from Rainy Day Fund

Permian Basin Share 2.82 Billion

James Beauchamp
(432) 563-6240
James@motran.org