The Permian Basin is a cornerstone of the nation’s energy security and a vital engine of economic growth. Stretching across West Texas and southeastern New Mexico, the basin’s abundant production over the last decade has cemented the United States as a global energy leader.

In 2024, the Permian produced approximately 6.3 million barrels of oil per day, nearly half of total U.S. output, and over 24 billion cubic feet per day (bcf/d) of natural gas. The U.S. Energy Information Administration projects 2025 production will rise to 6.6 million barrels and nearly 26 (bcf/d), with the basin expected to account for 50% of US oil output by 2026.

This surge in output has also reshaped the competitive landscape, with major operators expanding their footprints to secure long-term growth. Following its acquisition of Pioneer Natural Resources, ExxonMobil now holds the largest contiguous acreage position in the Permian Basin and plans to increase production in the Permian Basin to approximately 2.3 million barrels per day by 2030.

Bart Cahir, ExxonMobil’s SVP of Upstream Unconventional, recently stated: “We’ve strengthened our position in the industry and created new opportunities for innovation and growth. Together, we are better equipped to produce the energy the world needs and deliver long-lasting value to our local communities."

The Permian also dominates rig activity, currently representing over half of all active rigs in the United States, according to Permian Strategic Partnership’s 2025 Economic Report. If it were its own country, it would be among the top five oil producers in the world.

That production fuels American economic dominance, national security and everyday benefits. In 2024, Permian oil and gas activity generated $12.9 billion in taxes for Texas and $6.3 billion for New Mexico, according to the Permian Strategic Partnership (PSP), funding schools, universities, highways and stabilization funds that deliver real value to communities.

The report also found that the Permian supports over 860,000 jobs nationwide, including 645,000 in Texas and 147,500 in New Mexico, with another 185,000 projected by 2040. Though home to just 1.5% of Texas’ population, the region contributes 7.5% of the state’s private-sector GDP, a remarkable economic impact.

Beyond its traditional energy output, and notable contribution to jobs and GDP, the Permian is an example of American energy innovation, demonstrating that responsible production can achieve reduced emissions while production remains high. According to PSP, the Permian Basin is ranked the lowest in GHG emissions per barrel of oil equivalent, among the major onshore producing basins worldwide.  

These findings support a recent Texans for Natural Gas analysis which found that in 2023, the basin reached one of its lowest methane intensity levels this decade, down nearly 83% since 2011, even as production rose 482% in the same time frame. Flaring intensity in the Permian in 2023 was also down 65% from its decade high in 2015, demonstrating the industry’s commitment to producing more and emitting less.

Few regions in the world combine high levels of production with this scale of economic and technological impact. The 2025 White House report on the “Economic Benefits of Unleashing American Energy” credits growth in U.S. oil and gas, led by the Permian, with boosting GDP, lowering energy costs for consumers, and solidifying America’s competitiveness as a leader in petroleum, gas, and LNG exports. Similarly, PSP notes that LNG and oil from the Permian provided more than $119 billion in contributions to the US Balance of Trade in 2024.

Federal policy under the Trump Administration is poised to further enable the Permian’s continued success by streamlining infrastructure, supporting regular lease sales, and investing in supply chains, multiplying the region’s value. As global markets face new pressures and global energy demand continues rising, Texas and the Permian will remain critical stabilizing forces for the United States, its hard working people and global allies. Bipartisan support for continued domestic production will be more critical than ever before.