The Permian Basin is largely contained in western Texas and southeast New Mexico. It has one of the world's thickest deposits of rocks from the Permian geologic period. The greater Permian Basin includes the Midland Basin, the Delaware Basin and the Marfa Basin.

The Permian Basin gives its name to a large oil and natural gas producing area, part of the mid-continent oil producing area. The towns of Midland and Odessa serve as the headquarters for oil production activities in the basin.