In what could pass for some of the darkest times in state oil history, the Permian Strategic Partnership sees a light at the end of the tunnel.
In a letter penned to the Midland Reporter-Telegram, Don Evans and the partnership shared their optimism in the long-term future of the oil-rich region. Evans acknowledged the Permian Basin area has taken it on the chin this year, starting with the COVID-19 pandemic and its impact on health and the economy. The results of the economic shutdown served up another dose of bad news to global oil demand.
One reason that partnership has reason for optimism in comparison to past downturns is the Permian Basin produces oil with competitive returns.
“The Permian is now among the most prolific and productive oil fields in the world with strong economics to match,” Evans wrote.
Although the partnership finds predicting the future beyond its grasp, it believes as the world grows it will continue to need a reliable and affordable source of energy that the Permian Basin provides.
To date, it has proven profitable for the 20 companies of the partnership, which in turn have made efforts to serve as good community partners. During the first year of its existence, it provided $40 million in funding to support schools, roads, and health care while investing in a well-trained workforce. The partnership has also successfully advocated for $1 billion in federal and state funding.
Those investments are expected to pay off for the Basin as the wheels have begun turning to reopen the economy.
“The determination, resilience and grit of those who call the Permian Basin home give us all hope and confidence that our long-term future is bright,” Evans wrote. “PSP’s commitment to partnership continues today and will continue tomorrow and during the day’s ahead. We knew we have the best place, partners and people to respond to today’s challenges and, over time, put them behind us as we'll all work together toward a better tomorrow.”