By Ron Davis – Reporter, Albuquerque Business First
Nov 19, 2018, 3:30pm
A group of big energy players in the Permian Basin has made $100 million available in West Texas and New Mexico, Reuters reported Saturday.
Chevron, EOG Resources and ExxonMobil are among the 17 that have pledged money toward health care, education and civic infrastructure struggles in and around one of the hottest areas for oil in the world. The 17 that make up the Permian Strategic Partnership will work with other officials and groups to address labor and housing shortages, overtaxed health care and traffic congestion, according to Reuters.
There isn’t a set timetable for when and how the $100 million will be spent.
Exxon announced in January that it is set to invest $2 billion over the next seven years as it plans to triple production to 600,000 barrels of oil per day in the Permian.
Business First held its Energy Outlook panel earlier this month, which included speakers whose businesses were directly and indirectly affected by the oil boom in southeast New Mexico.
With the state expecting to have a surplus for 2019, in part because of the Permian boom, Carlsbad National Bank President Jay Jenkins recommended that some of that surplus be used to reinvest in the infrastructure in the area.
The panel shared tips on the housing and labor shortage struggles, along with a few cautionary tales about companies and individuals jumping at the chance to get a piece of the oil-ripe Permian Basin.
In its report, Reuters said the oil boom has caused retail and restaurant workers to leave their jobs for the lucrative oil industry. During the Energy Outlook panel, Jenkins said a much-needed apartment complex in Carlsbad remained a work in progress after construction workers took off for the oil business.
COG Production LLC topped Business First’s List of Largest Oil Producers in New Mexico with nearly 30.5 million barrels produced in 2017, which was an 11 percent increase from the year before.