A Partnership Prepared to Help During Extraordinary Times
Permian Strategic Partnership is made up of 17 companies committed to providing more than $100 million over the next several years as seed money to spur additional private sector investment.
As leaders of major energy companies operating in the Permian Basin, we often engage in spirited competition with each other for quality workers, leases and equipment, and to make our individual companies the best operators and service providers in the industry.
But a once-in-a-generation opportunity has brought us together for a common purpose – to strengthen the communities where we live and work.
The Permian is poised to provide energy the world needs, create tens of thousands of local jobs and generate billions in state and local tax revenues. But this potential can only be fully realized if we simultaneously address significant infrastructure challenges and preserve the quality of life that makes so many want to live and work here.
With this goal in mind, our companies have formed the Permian Strategic Partnership, an industry resource that will partner with local leaders and stakeholders to strengthen communities across West Texas and southeast New Mexico for decades to come.
What is happening in the Permian today is nothing short of remarkable. We are becoming one of the most strategically important oil producing regions in the world. We are leading the way to making America energy secure.
Total oil production in the region is expected to more than double in the coming years. At that point, the Permian would be an oil-producing super-power trailing only Saudi Arabia, Russia, and the combined output of all other U.S. producing regions. The Permian has the power to strengthen our country’s energy and economic future in a way not previously imagined.
While the oil and gas business is inherently cyclical, we are convinced that what is happening in the Permian today points to a resilience that is different from the boom and bust cycles of the past. Advances in technology and improved operating efficiencies have helped us produce safely and profitably even when prices are relatively low. We have analyzed various scenarios and believe that, even in a downturn, Permian production will continue to grow in the coming years.
Being such a strategically important oil producing region comes with certain challenges that are stressing our communities. To start identifying these key challenges and understanding future community needs, the Partnership first listened to local organizations and surveyed thousands of our employees who live here.
Collectively, they emphasized the need for safer roads, superior schools, quality health care, affordable housing and a trained work force. As employers, we want workers to move here with their families, build careers, and become a part of the community.
The good news is that the production growth we anticipate will result in billions of dollars of state and local tax revenues that could be directed to help meet these needs. A number of significant charitable foundations are also doing important work in education and infrastructure, and our individual companies are already supporting many community projects. But we feel this uncommon situation requires more.
In the coming months, we will open an office and announce leaders and staff to guide what we expect to be a multi-year effort. Early next year, we will begin a series of community meetings to invite citizen input and harness the volunteer spirit that is so much a part of this region.
We aim to add value to – not duplicate – the important work already being done by local governments, school districts, business organizations, nonprofits and foundations.
As energy companies, we know how to drill wells and lay pipelines; we are not experts in areas such as improving public schools or training medical staff. However, we can partner with schools and colleges to help prepare future workers for the job opportunities that await them.
Our companies make significant, long-term capital investments, and we hope our business expertise can help with planning and projecting future needs. The Partnership will convene conversations with stakeholders and advocate with state and federal officials to garner support for the critical investments in infrastructure improvements in the region.
While our primary financial contribution will be the substantial tax revenues our industry generates, we will also continue to provide funds for selected priority projects, both as individual companies and through the Partnership. Collectively, we are committed to providing more than $100 million over the next several years as seed money to spur additional private sector investment.
This will be a long-term process. Building new roads, recruiting new doctors and teachers and developing new neighborhoods will require years of work, substantial resources and sustained cooperation among many entities. But we share a sense of urgency with our communities to find both interim and long term solutions.
West Texas is known for its boundless optimism and “sky’s the limit” thinking. That “big sky” helps us see the incredible possibilities ahead, just as the beautiful public lands and caverns of southeast New Mexico ground us in the values that make this region so exceptional. Every member of the Partnership is eager to participate in the decisions that will help ensure the full potential of the Permian is realized by all.
Al Walker, Anadarko
John Christmann Apache
Jeff Gustavson, Chevron
Tom Jorden, Cimarex
Tim Leach, Concho
Dave Hager, Devon
Travis Stice, Diamondback
Doug Suttles, Encana
Chuck Meloy, Endeavor
Bill Thomas, EOG Resources
Jeff Miller, Halliburton
Vicki Hollub, Occidental
Matt Gallagher, Parsley
Tim Dove, Pioneer
J.F. Poupeau, Schlumberger
Staale Gjervik, XTO Energy
Gretchen Watkins, Shell