Midland, Texas is looking for ways to utilize the benefits of the current oil boom to prevent a future bust:
In the Permian, “we don’t say boom anymore,” according to Morales, who serves as mayor of the nation’s fastest growing city. “We’re very sustainable. The boom-and-bust era is over.”…
The Permian rose from the dead with the advent of fracking a decade ago to become a market beast, producing about a third of U.S. oil as it grew to become one of the world’s most prolific oilfields.
In the process, though, local resources were stretched beyond their limits. Now, Morales and others say the region may be settling into adulthood. Employers still struggle to fill jobs in competition with the oilfields, roads are jammed, schools overflow and home prices are sky-high. But local leaders say they have plans and resources set to secure a long-term future…
The partnership being forged between the oil companies and the local communities is unlike anything achieved elsewhere, Bentley said.
Growth is good in any American community. When the population is increasing, businesses arrive in town, and money is being made, a lot of problems can be overlooked (including the issues of adjusting to sudden or rapid growth).
But, growth does not always continue or move at the same pace. This seems especially true for places reliant on limited natural resources like oil. At some point, the oil runs out or prices change and the boom is over. Reliance on any single industry or produced good – think Detroit and cars – can lead to problems.
I would guess that few communities could quickly replace or recover from the loss of a business sector that seems to be as important as oil is in Midland. At the same time, resiliency is a buzz word in many circles as cities, regions, and states consider how they might set themselves up to be more adaptable to the sudden changes that could come. Imagine New York City without the finance industry, Silicon Valley without tech, Miami without tourism and beaches, and so on. Building infrastructure now and sowing the seeds for other industries and sectors to grow in the future could be a good hedge for a time when oil is not booming.