MIDLAND, Texas — The City of Midland is projected to have yet another strong economic year.
This comes from the Kenan Institute's American Growth Project, which ranked Midland first on a list of 100 mid-size cities in regards to potential gross domestic product (GDP) growth.
Midland was one of five Texas cities to have overall growth projections alongside Amarillo, Lubbock, Killeen and El Paso.
Meanwhile, Midland finished higher than other cities such as Albany, Santa Barbara and Fort Collins.
“I believe their growth projections are comprised of job creations and gross domestic product of the region," said Sara Harris, the executive director of Midland Development Corporation. "That is based primarily on the energy industry; we have seen significant increases in activity and oil and gas sectors due to higher price increases for commodity.”
High contributions from the oil and gas industry alongside spikes in energy prices pegged Midland's 2022 GDP at 9.4%.
While that GDP growth rate is projected to lower to 6.7% in 2023, it is still four percent higher than second place Amarillo's 2.5% GDP growth rate.
The driving force behind this growth comes from increased prices for West Texas Intermediate oil and overall price increases for natural gas, leading to a boom in the energy field.
"That leads to increased activity in the energy sector with more jobs and more hiring, which results in more capital expenditures by those oil companies," Harris said. "Since energy makes up the largest proportion of Midland’s economy, economic activity, that directly drives economic growth in the city.”
For more information on the Kenan Institution's findings, the full report can be found on their website.