Former U.S. Commerce Secretary and energy executive Don Evans will chair a partnership of oil and gas firms that have pledged $100 million toward easing the civic strain of the shale oil and gas boom in West Texas and New Mexico, the group said Jan. 17.
The Permian Strategic Partnership was formed late last year to ease the strain on health care, education, housing and the workforce created by companies flocking to the Permian Basin. Its 19 members include Exxon Mobil Corp. (NYSE: XOM), ConocoPhillips Co. (NYSE: COP), Occidental Petroleum Corp. (NYSE: OXY), Pioneer Natural Resources Co. (NYSE: PXD) and Royal Dutch Shell Plc (NYSE: RDS.A).
The nation's largest oil field is expected to pump 3.8 million barrels of oil per day this month, according to the U.S. Energy Information Administration.
Evans, who started his career working on a rig for Tom Brown Inc. and eventually became its CEO, served as commerce secretary during the administration of former President George W. Bush. He is a longtime resident of Midland, Texas, where the organization will be based.
Restaurants, local governments and other employers in the area have come under pressure with staff leaving for oilfield jobs. Midland's unemployment rate was 2.1% in October, compared to the nation's 3.7% rate.
The last decade's shale boom has led to school overcrowding, soaring traffic fatalities, drug abuse and strains on the power grid.
The region needs more pediatricians, better schools and affordable housing to attract families, Evans said. While oil and gas workers can afford rising rents, "it's the teachers and nurses and other support services that you need in any community that it's tough on," he added.
The partnership has started holding community meetings in the region and is still recruiting staff. It has no timetable or plan yet on how to spend the initial $100 million contribution, though Evans said the group is set up to receive and consider grant applications.
Recommended Reading
US Drillers Cut Most Oil Rigs in a Week Since November
2024-04-26 - The number of oil rigs fell by five to 506 this week, while gas rigs fell by one to 105, their lowest since December 2021.
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.