2025 Legislative Days Economic Impact 1.30.25 PR

Midland and Odessa Economic Impact PERMIAN BASIN Midland and Odessa Economic Impact PERMIAN BASIN Midland and Odessa Economic Impact PERMIAN BASIN Since the 1920s, oil and energy have been the preeminent sectors in the Permian Basin. Productivity in the oil sector drives the area’s high performance; the mining and construction sector employs roughly 30% of the area’s workforce but accounts for a whopping 60% of the extended metro area’s GDP. Recent technological advances in hydraulic fracturing to extract oil and gas have led to a boom in the West Texas area over the past decade. Midland & Odessa Economic Impact

Midland and Odessa are the population, commercial, and cultural centers of the Permian Basin, one of the world's commercial, and cultural centers of the Permian Basin, one of the world's most prolific oil and natural gas producing most prolific oil and natural gas producing most prolific oil and natural gas producing regions. The Permian Basin is a sedimentary basin that spans over 86,000 square miles of West Texas and Southeastern New Mexico. regions. The Permian Basin is a sedimentary basin that spans over 86,000 square miles of West Texas and Southeastern New Mexico. miles of West Texas and Southeastern New Mexico. Midland and Odessa are the population, Midland and Odessa are the population, commercial, and cultural centers of the Permian Basin, one of the world's regions. The Permian Basin is a sedimentary basin that spans over 86,000 square

Map from the Permian Strategic Partnership Map from the Permian Strategic Partnership Map from the Permian Strategic Partnership

ENERGY ENERGY

ENERGY

Industry in the Permian Basin is responsible for approximately 40% of all oil and 15% of all natural gas produced in the United States. Oil Production Natural Gas Production Industry in the Permian Basin is responsible for approximately 40% of all oil and 15% of all natural gas produced in the United States. Oil Production Natural Gas Production Industry in the Permian Basin is responsible for approximately 40% of all oil and 15% of all natural gas produced in the United States. Oil Production Natural Gas Production of all oil and 15% of all natural gas produced in the United States. Oil Production ENERGY

Permian Basin 15% Permian Basin 15%

Permian Basin 15%

Permian Basin 40% Permian Basin 40%

Permian Basin 40%

Rest of the U.S. 85% Rest of the U.S. 85%

Rest of the U.S. 60% Rest of the U.S. 60%

Rest of the U.S. 85%

Rest of the U.S. 60%

Percentages from Federal Bank of Dallas Percentages from Federal Bank of Dallas Percentages from Federal Bank of Dallas Data from Federal Bank of Dallas

Midland and Odessa Economic Impact ECONOMY

The combined metropolitan statistical areas (MSAs) for Midland and Odessa account for over $69.2 Billion in current-dollar GDP in 2022. This ranks the combined economies for Midland-Odessa MSAs at 5th most extensive in Texas, ahead of El Paso MSA and Beaumont/Port Arthur MSA. This also makes Midland’s and Odessa’s combined economies greater than two states, Vermont and Wyoming.

According to the Kenan Institute for Private Enterprise’s American Growth Project February 2023 Report, the Midland EMA (extended metropolitan areas), which includes Odessa, was ranked the #1 fastest- growing economy among midsize cities nationally. The 6.7% growth rate is more than two and a half times greater than Amarillo, TX (at 2.5%) and nearly four times greater than Fort Collins, CO (at 1.7%). GROWTH According to the Kenan Institute for Private Enterprise’s American Growth Project February 2023 Report, the Midland EMA (extended metropolitan area), which includes Odessa, was ranked the #1 fastest growing economy among the mid-size cities nationally. The 6.7% growth rate is more than two and a half times greater than Amarillo, TX (at 2.5%) and four times greater than Fort Collins, CO (at 1.7%). GROWTH

Rank EMA Name

2023 GDP Growth

2022 GDP Growth

Change in Growth

GDP (2023, billions USD)

GDP Share of U.S. Total (2023)

Population (2020, millions)

Population Share of U.S. Total (2020)

1 Midland, Texas 2 Amarillo, Texas

6.7% 2.5% 1.7% 1.1% 0.9% 0.9% 0.9% 0.8% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.5% 0.5%

9.4% -2.7% 3.1% -0.5%

69 27 29 39 38 48

0.3% 0.1% 0.1% 0.1% 0.1% 0.2% 0.4% 0.1% 0.2% 0.1% 0.2% 0.3% 0.1% 0.3% 0.1% 0.2% 0.1% 0.2% 0.2% 0.1% 0.1% 0.1% 0.2% 0.1% 0.3%

0.3 0.3 0.4 0.4 0.5 0.7 1.2 0.4 0.8 0.5 0.8 1.0 0.5 0.9 0.3 0.8 0.4 0.7 0.6 0.4 0.3 0.4 0.9 0.5 1.2

0.1% 0.1% 0.1% 0.1% 0.2% 0.2% 0.4% 0.1% 0.2% 0.1% 0.2% 0.3% 0.1% 0.3% 0.1% 0.2% 0.1% 0.2% 0.2% 0.1% 0.1% 0.1% 0.3% 0.2% 0.4%

3 Fort Collins, Colorado 4 Santa Barbara, California

4.5% 3.9%

-2.8% -2.8%

5 Fayetteville and Springdale, Arkansas

3.5% -2.5% 2.2% -1.3% 2.4% -1.5%

6 Wichita, Kansas 7 Albany, New York 8 Salinas, California

101

2.6%

-1.8%

35 58 24 46 87 36 83 21 61 22 50 47 29 22 24 60 32 92

9 Charleston, South Carolina

2.9% -2.2% 3.4% -2.6% 2.7% -1.9% 2.1% -1.4% 2.7% -2.0% 2.7% -2.0% 3.1% -2.4% 2.5% -1.9% 2.2% -1.5% 1.1% -0.5%

10 Visalia, California

Chart from American Growth Project | Fastest-Growing Economies Among the Top 100 Midsize Cities American Growth Project | Fastest Growing Economies Among the Top 100 Midsize Cities

11 Spokane, Washington 12 Omaha, Nebraska 13 Cedar Rapids, Iowa 14 Des Moines, Iowa

15 Wilmington, North Carolina

16 South Bend, Indiana

17 Lubbock, Texas 18 Portland, Maine

19 Huntsville, Alabama 20 Shreveport, Louisiana

2.4%

-1.8%

2.7% -2.1% 2.7% -2.2% 2.5% -1.9% 2.9% -2.3% 2.9% -2.3% 2.6% -2.0%

21 Destin, Florida

22 Gainesville, Florida 23 Bakersfield, California 24 Asheville, North Carolina

25 Buffalo, New York

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