Market Overview

ExxonMobil Permian Development to Provide $64 Billion in Benefits to New Mexico: Study

  • 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

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

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
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.
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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

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