Permian Strategic Partnership Annual Report

Page 1

Power in Partnership

2019-2020 ANNUAL REPORT


The Permian Strategic Partnership is a coalition of 17 leading Permian Basin energy companies who joined together to work in partnership with leaders across the region's communities to address current and future challenges to the responsible development of the vast oil and natural gas resources of the Permian Basin in the states of New Mexico and Texas.


The Permian Basin didn’t become the world’s third-largest energy producer through the work of any one entity. It is through the efforts of many that the Permian has risen in prominence, achieving energy security for the nation and prosperity for the region. In the same spirit, the Permian Strategic Partnership leverages its relationships with like-minded organizations, local and national leaders, and

Power in Partnership

public partners to achieve more together than we could alone. Working in collaboration, we have increased funding for education, invested in career training, expanded healthcare access, improved

safety and infrastructure, made housing more affordable for teachers, and expanded broadband access across the Permian Basin. Our partnerships have also transformed $48,477,329 in member contributions into $844,314,261 in community-led investments. And that’s just the beginning.

‟The Permian will be the engine for the world economy for decades to come. It’s one of the great hydrocarbon basins in the world.” Daniel Yergin Vice Chairman of IHS Markit and Author of “The New Map: Energy, Climate and The Clash of Nations”


Permian Strategic Partnership Members Apache BPX Energy Chevron Cimarex Energy ConocoPhillips Devon Energy Diamondback Energy Endeavor Energy Resources EOG Resources ExxonMobil Halliburton Occidental Petroleum Ovintiv Pioneer Natural Resources Plains All American Pipeline Schlumberger Shell

2

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


ABOUT PSP

About the Permian Strategic Partnership It’s rare to see competitors working together. But that’s exactly what we’re doing. The Permian Strategic Partnership is a first-of-its-kind alliance between 17 leading energy companies: Apache, BPX Energy, Chevron, Cimarex Energy, ConocoPhillips, Devon Energy, Diamondback Energy, Endeavor Energy Resources, EOG Resources, ExxonMobil, Halliburton, Occidental Petroleum, Ovintiv, Pioneer Natural Resources, Plains All American Pipeline, Schlumberger, and Shell. True, our partners are competitors. However, we choose to work together toward a common goal: to make a lasting impact in the Permian Basin. With its vast reserves, the region has the potential to improve energy security for decades—but to keep pace with growth, investment in infrastructure is critical. Founded in 2018, the Permian Strategic Partnership focuses on addressing challenges to the responsible development of the Permian Basin in New Mexico and Texas. By supporting the development of safer roads, innovative schools, expanded healthcare, affordable housing, a trained workforce, and other vital infrastructure needs, we can strengthen the Permian today, and ensure its success well into the future. The needs are great, and we can’t do it alone. Together, we can.

2019-2020 ANNUAL REPORT

|

3


LETTER FROM THE CHAIRMAN

A Letter from Our Chairman I have called the Permian Basin home for decades, and I know firsthand that this is a wonderful place to raise a family and build a meaningful career. When I was asked to be the inaugural Chairman of a new organization focused on preserving and improving quality of life in the Permian Basin, the decision was an easy one. There are few places in the world that compare to the Permian. The Permian Strategic Partnership is an organization like no other, serving a community like no other. The Permian Basin is a generational energy play that will power the country and world for decades to come; in many ways, the boomand-bust days of energy are gone. Through its continuous innovation and technological advancements, the industry is stabilizing, but the community has lacked a similarly stable quality of life. Despite best efforts by local leaders and industry partners, access to key resources and opportunities for residents in the Permian Basin has trailed behind other areas of Texas and New Mexico. The Permian Strategic Partnership’s ability to leverage funds through public-private partnerships to improve infrastructure, healthcare, education, and other essential services in the region has been nothing short of remarkable. We have worked alongside community members, industry leaders, and elected officials at all levels of government to transform initial investments into hundreds of millions of dollars that will tangibly and dramatically improve our area for future generations. The Permian Strategic Partnership would not be the organization it is today without the extraordinary leadership of Tracee Bentley and the work of our committed staff. Nor would the organization exist without generous support from our industry partners—not to mention the countless hours of dedication and expertise volunteered by their employees. We are also grateful to have leadership at the state level, with Governors Greg Abbott and Michelle Lujan Grisham, who each understand the unique potential of the Permian Basin. The leaders of both states’ Departments of Transportation, Bruce Bugg and Michael Sandoval, have been indispensable in implementing the Permian Promise and building safer roads. I believe in the Permian Basin, and I am humbled by the opportunity to lead the Permian Strategic Partnership. The treasure that is West Texas and Southeast New Mexico has transformed the world, lifted families out of poverty, and built the vibrant Permian community we all love. I am honored to play a small part. Our work is not done.

Don Evans Chairman, Permian Strategic Partnership

4

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


LETTER FROM THE PRESIDENT & CEO

A Letter from Our President & CEO When I was asked to serve as the President and Chief Executive Officer of the Permian Strategic Partnership, I could never have predicted the challenges we would face as a region over the past year. The pandemic, coupled with its impact on energy demand, has affected every aspect of our industry. Serving in this role has always been a tremendous honor, both personally and professionally, and after seeing how our partners have come together to support our Permian Basin communities in this difficult time, I could not be prouder to represent our industry and particularly our 17 member companies. I am pleased to share in this report the tremendous progress we have made in just over two years—progress that will improve the lives of those who call the Permian Basin home. The Permian Strategic Partnership is setting an example of how effective, community-driven investment can reap exponential returns. Across our focus areas of education, healthcare, roads and infrastructure, workforce development, and housing, we are making strides to improve quality of life for everyone in our region. We know that the challenges our region faces cannot be solved overnight, and they cannot be solved alone. We have learned how to invest in terms of decades, not years, and how to partner with many like-minded organizations in our region. The power of these organizations, as well as strategic partnerships with our local communities, unlocks unlimited potential for the future. Our organization set out with an ambitious goal in mind: to invest in a region and its communities through publicprivate partnerships, in order to yield outcomes far greater than what could be accomplished by any individual company or government. In the end, ambition became reality. In our short tenure, we have turned nearly $50 million in contributions from our member companies into more than $800 million in community-oriented investments. This report is a demonstration of how our organization has partnered with others to make the Permian Basin an even better place for business—and, more importantly, an even better place to call home. I am proud of all that we accomplished so far, and look forward to even more exciting projects in the years ahead. Thank you for your continued support.

Tracee Bentley

President & CEO, Permian Strategic Partnership

2019-2020 ANNUAL REPORT

|

5


Working Together for a Greater Impact Investing in the Permian is the right thing to do, for the

The Permian Strategic Partnership is a new organization,

communities, and for the country. The members of the

directly invested $48,477,329 in Permian Basin projects,

future of our industry, for the vitality of the region’s Permian Strategic Partnership feel a social responsibility

to give back to this region that has given jobs, energy security, and economic stability to the U.S.

formed just two and a half years ago—yet we have and contributed to collaborative investments totaling $844,314,261.

$48.5mm in PSP contributions

Education

Healthcare

Road Safety

$16,500,000

$6,800,000

$1,100,000

$4,000,000

$2,500,000

IDEA Public School Investment

Teacher Certification Investment

Healthcare Access Investment

Regional Physician Assistant Investment

$1,000,000

Education Technology Investment

6

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P

Road & Safety Investment


E C O N O M I C I M PA C T

$844 mm in collaborative investments

Workforce

Housing

Initiative Support

$10,000,000

$700,000

$4,400,000

Hobbs CTE Program

Teacher Housing Investment

Data, Research, & Outreach

$800,000

Permian Basin Community Grants

$800,000

Permian Basin Catalyst Program

2019-2020 ANNUAL REPORT

|

7


Co m

mun i ty I n f r a s t r uc t ure

Education

Housing

Healthcare

Permian Strategic Partnership Focus Areas

Infrastructure

Broadband Access

Workforce


PSP MISSION

Our Mission To strengthen and improve quality of life for Permian Basin residents by partnering with local leaders to develop and implement strategic plans that foster superior schools, safer roads, quality healthcare, affordable housing, and a trained workforce. The companies involved with the Permian Strategic Partnership bring people, expertise, resources, and leadership to develop solutions in partnership with local leaders and communities. Since our founding, we have also worked to expand broadband access and have helped spearhead a number of community-focused studies and campaigns.

2019-2020 ANNUAL REPORT

|

9


$16.5mm The Permian Strategic Partnership invested $16.5 million to bring IDEA (Individuals Dedicated to Excellence and Achievement) public schools to Midland and Odessa.

10

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


I N V E S T M E N T I N E D U C AT I O N

Working Together to Improve Education Outcomes Children are the future of the Permian Basin. Investing in their education today helps ensure we will have a high-quality workforce and a prosperous local economy tomorrow. Creating excellent public schools also improves quality of life for those who call the Permian home, while making the region more attractive for those who are to come. The Permian Strategic Partnership is focused on accelerating improvement to public schools in Texas and Southeast New Mexico. We focus on initiatives like advancing school performance, improving teacher quality, and investing in technology for schools and students. Transforming education in the Permian Basin is a formidable task—but fortunately we aren’t tackling the problem alone. We are proud to partner with schools, teachers, businesses, private foundations, and public entities to increase the impact of our investment in education.

2019-2020 ANNUAL REPORT

|

11


I N V E S T M E N T I N E D U C AT I O N

A Bright IDEA for School Innovation PSP's investment was combined with other business, foundation, and individual donations for a total investment of:

$55mm 100% College-Bound Seniors for 13 years

Imagine a school where every senior who graduated was accepted into college. It’s not just a dream. For IDEA Public Schools, it’s a reality. As the fastest-growing network of tuition-free, Pre-K–12 public charter schools in the United States, IDEA has sent 100% of its graduating seniors to college for 13 years in a row. When the need for an education partner arose, IDEA clearly stood out to the Permian Strategic Partnership. An acronym for Individuals Dedicated to Excellence and Achievement, IDEA closes achievement gaps through personalized learning, expert teachers, and family partnership. As a 501(c)(3) nonprofit organization, it is open to all students at no cost. The Permian Strategic Partnership committed $16.5 million to bring IDEA public schools to Midland and Odessa, contributing to a total of $55 million raised by local business, foundation, and individual partners. As a result of this collaborative effort, the first IDEA campus, Travis IDEA Academy, opened in August 2020. The Midland, Texas, school revitalized an existing school that was underperforming and had high teacher turnover. Since re-opening as Travis IDEA Academy, the school has improved its test scores, and is outperforming other schools in the district. A second IDEA campus, IDEA Yukon, broke ground on April 1, 2020, and five additional campuses across Midland and Odessa are planned to open by the 2024-2025 school year.

‟IDEA Travis really gives kids that are mislabeled the chance to shine and restore their passion to learn. My son was lost, and IDEA Travis provided him with the fuel to keep learning over the summer on his own. This says a lot about how much this school cares about our children.” Jazmine P.

Parent, 4th Grade IDEA Travis Student

12

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


Investing in Teachers Improves Student Success Our children deserve the best education. Our teachers deserve opportunities to advance. How do we meet both goals? Investing in board certification is a great way to start. Research has shown that students taught by National Board Certified Teachers learn more than students taught by other teachers—and the effect is even greater for low-income students.1 Teachers who are Board-certified also receive higher salaries, which can improve teacher retention and career satisfaction.

~$4mm To Support Board Certification of

In an effort to improve teacher quality while providing opportunities for advancement, the Permian Strategic Partnership joined forces with the National Board for Professional Teaching Standards and the New Mexico National Board Certified Teacher Network. The Partnership identified state funds dedicated to support Board certification of teachers and increase teacher salaries after program completion. We then leveraged the funds available through the program by providing $3,960,180 in additional financial support for local teachers interested in completing the two-year Board certification curriculum. The initiative, which focuses on Eddy and Lea Counties in New Mexico and Ector County in Texas, will provide funds for 700 teachers (about five percent of the region’s teachers) to become

700

Teachers in Texas and New Mexico

certified over a three-year period.

2019-2020 ANNUAL REPORT

|

13


I N V E S T M E N T I N E D U C AT I O N

$800k Provided by PSP to Improve Technology in Permian Schools

Boosting Connectivity for Virtual Learning For schools today, technology isn’t a luxury. It’s a necessity. In 2020, as schools across America transitioned to virtual learning, disparities between regions with access to highspeed internet, and those without, became apparent. Unable to teach students in person, educators relied on technology to reach their students—but many districts in rural communities of the Permian Basin lack high-speed internet. The Permian Strategic Partnership teamed up with Edlink18, a technology consortium that provides internet access, email, and videoconferencing services to K-12 students, educators, and entities throughout Region 18 Education Service Center, to help schools and students

33k

Students Benefit from the Investment

stay connected during the pandemic, and beyond. The Partnership provided $800,000 to help facilitate technology upgrades, supporting about 33,000 students. The funds provided fast internet for Permian Basin schools, along with data security and tech support from trained IT professionals.

‟As a rural school, it gives us peace of mind to know that our data is secure, and that we have access to trained IT professionals who can troubleshoot our internet issues. Without this support, many small schools in the area would not have the tools necessary to provide quality instruction to their students.” Adrian Gallardo Principal, Rankin High School

14

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P



I N V E S T M E N T I N H E A LT H C A R E

Expanding Healthcare Access Across the Permian Imagine for a moment that you need to see a doctor—and the closest one is hundreds of miles away. In an emergency situation, it could be the difference between life and death. If you’re living with a chronic health condition, it could mean having to move far from home just to get routine care. While the Permian Basin is home to many outstanding doctors and hospitals, the region is in need of many more. As people continue to move to the region, investment in the healthcare industry is critical to ensure there are enough physicians and healthcare workers to treat every resident. That’s why the Permian Strategic Partnership joined forces with Texas Tech University Health Sciences Center, one of the top healthcare institutions in the nation, in 2020. Together, we’re helping to expand healthcare access across the Permian Basin.

16

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


$5.9mm The Permian Strategic Partnership invested $5.9 million to expand Texas Tech University Health Sciences Center School of Medicine’s Family and Community Medicine Rural Residency Program.

2019-2020 ANNUAL REPORT

|

17


I N V E S T M E N T I N H E A LT H C A R E

PSP's investment will increase the number of primary care resident physicians in the Permian Basin by:

21

New Family Medicine Residents Over 3 Years

2

New Mental Health Fellows

Expanding Healthcare through Physician Residencies Access to healthcare is essential to quality of life. But in certain areas of the Permian Basin, finding a local primary care provider can be a challenge. With only one physician for every 3,500 residents, West Texas has been designated a Health Professional Shortage Area by the Texas Department of State Health Services.2 The shortage isn’t exclusive to healthcare. It makes it difficult to attract and retain employees across all sectors, from oilfield workers and engineers to teachers, restaurant employees, and hotel staff. To address this challenge, the Permian Strategic Partnership teamed up with the Texas Tech University Health Sciences Center School of Medicine to provide funding for the expansion of its Family and Community Medicine Rural Residency Program. We invested $5.9 million to help grow the program, which serves Midland Health, Carlsbad Medical Center, Lea Regional Medical Center in Hobbs, New Mexico, and Reeves County Medical Center in Pecos, Texas. The investment will allow the program to admit 23 additional family medicine residents for each graduating class, creating a sustainable pipeline for medical talent in the Permian Basin. Beyond training doctors to operate in rural regions, the residency program also helps them plant roots in the Permian Basin. Residents begin their training with a year in Midland or Odessa, and then spend two years practicing at rural sites. Retention is a key aspect of the program’s success. Training more doctors locally will likely increase the chances that

Second-Largest Family Medicine Residency in Texas

doctors will continue to practice locally when their education is complete. By investing in a preeminent local healthcare institution, the Permian Strategic Partnership is helping to position the Permian Basin as a healthcare destination. After Texas Tech expanded its residency program, it became the second-largest family medicine residency program in the state of Texas.

18

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


Building Healthcare Access from the Ground Up We’re making great progress in attracting more family medicine physicians to the Permian Basin, but it will take time to close the gap between doctor supply and healthcare demand. As we all know, the path to become a doctor requires a substantial investment of time and money. Add the challenge of convincing physicians to practice in rural areas, and the problem becomes even greater. But what if there was another way to bring high-quality healthcare to Permian patients? One way to expand primary care capacity is to train and hire physician assistants (PAs). Completing medical school plus residency can take an average of seven to 10 years. In contrast, PAs graduate and begin training in 27 months. These highly educated healthcare professionals are licensed to practice with physician supervision—

12

New Physician Assistant Residents in the Permian Basin

35,000 Square-foot PA Training Facility

and they can provide 90-95% of primary care services. To help bring more PAs to the Permian Basin, the Permian Strategic Partnership provided $2.5 million in funding to support the $30 million expansion of Texas Tech University’s Master of Physician Assistant Studies program. Together with other donors, the Partnership helped make it possible for Texas Tech to build a brandnew, 32,500-square-foot facility in 2020, and to increase its PA class size by 12 students. The new facility broke ground in March 2021, and will house an anatomy lab, clinical classrooms, and training facilities. The PA training program strategically rotates students through Permian communities to encourage retention and permanent placement— and its expansion will increase patient access across the region, reaching several cities that were previously underserved. As PAs become more familiar with a community, patients, and managing physicians, they may be more likely to receive job offers, and choose to practice in the area full-time after graduation. We were proud to play a small role in this powerful investment,

‟The ability to put more students through TTUHSC's PA program will provide even more top-notch healthcare providers to this region and surrounding areas, and I am certain that this investment will be fruitful for many years to come. I can’t wait to see the finished product and the new opportunities students will have to develop and hone their medical knowledge and skills.”

which was a team effort between many public and private partners.

Daniel Lockhart

Texas Representative Tom Craddick secured $20 million for the

PA-S2, Texas Tech University Health Sciences Center

program during the 86th Texas Legislature, and additional funding was provided by Midland Development Corporation, the Scharbauer Foundation, Texas Tech institutional funds, and other gifts.

2019-2020 ANNUAL REPORT

|

19


$1.1mm The Permian Strategic Partnership contributed to a collaborative investment of $1.1 million to purchase life-saving equipment for first responders.

20

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


INVESTMENT IN INFRASTRUCTURE

Inroads in infrastructure In the oil and gas industry, safety always comes first. Every one of our employees is important—and so is every resident of the Permian Basin. That’s why the Permian Strategic Partnership invests in public safety initiatives like providing support to first responders, improving public roads, and applying for grant funding. Since our inception in 2018, the Permian Strategic Partnership has been at the forefront of road improvement initiatives. We are committed to doing our part to help prevent accidents, fund highway safety research, and support the implementation of roadway projects. Working together with local, state, and federal partners, we are committed to protecting the people of the Permian Basin.

2019-2020 ANNUAL REPORT

|

21


INVESTMENT IN INFRASTRUCTURE

Giving First Responders the Tools to Save Lives PSP teamed with the Permian Road Safety Coalition to provide life-saving equipment across:

22

Counties in Texas and New Mexico

1 hr

Average Response Time in Rural Permian Basin

When we call 911, we expect help right away—but in the Permian Basin, it may take up to an hour for first responders to arrive. The region’s high call volume and rural geography make it increasingly more difficult for help to arrive quickly. Adding to the challenge, many first responders in the Permian serve in small jurisdictions with limited infrastructure and resources. First responders act selflessly and heroically every day, but without the right equipment, people may have to wait even longer for additional personnel to arrive. To help first responders address emergencies more effectively, the Permian Strategic Partnership teamed up with the Permian Road Safety Coalition to provide life-saving equipment to 22 counties across West Texas and New Mexico. Together, the organizations invested $1.1 million, purchasing equipment such as battery-powered “jaws of life,” medical supply kits, fire extinguishers, mobile lighting tools, and rescue helicopter landing zone kits. The investment has the potential to save lives by ensuring first responders are as prepared as possible to help individuals in need.

‟Let me extend our thanks to the Permian Strategic Partnership and Permian Road Safety Coalition for extending the already successful First Responder Life-Saving Equipment Initiative to all 22 counties of the Permian Basin. Please know how much we appreciate the positive collaboration between industry and first responders—it truly makes a difference.” Josh Mack Fire Chief, Eddy County

22

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


Laying the Groundwork for Road Safety Improvements Safer roads save lives. According to a recent study commissioned by the Permian Strategic Partnership from the Texas A&M Transportation Institute, investing $1.2 billion in rural widening efforts could result in 4,500 fewer crashes, potentially saving 180 lives.3 The study was one of two collaborative projects with the Texas A&M Transportation Institute, in order to accelerate the funding and delivery of road safety improvements.

PSP's commissioned study from the Texas A&M Transportation Institute found that rural road widening could result in:

~4,500 Fewer Crashes

Study: Building Safer, Better Roads in the Permian Basin The goal of the study was to capture the safety and economic benefits of investing in Permian roads, in both Texas and New Mexico. Analysts studied the potential impacts of the $6 billion in Permian roadway improvement projects proposed by the Departments of Transportation in Texas and New Mexico, and found significant longterm benefits. Results of a cost-benefit analysis projected through 2050 found that for every $1 spent in construction costs, $3 would accrue over time. Study authors also estimated that if all the proposed

and

~180 Fewer Fatalities

rural roadway widening projects are completed, three million hours in roadway delays will be saved—a third of which would be attributed to heavy trucks. The time saved is the equivalent of a fleet of 100 cars and trucks, driving every minute of every day, for 34 years. Project: Access Management and Driveway Consolidation Next, we partnered with the Texas A&M Transportation Institute on an access management and driveway consolidation project. Goals of the project included improving road safety, providing implementation support, and developing cutting-edge research on connected vehicle data, to solve real-world highway safety problems. The project leverages the Texas Department of Transportation’s current work to consolidate driveways and improve access management in order to reduce highway crashes. By taking a critical look at access management issues from an industry perspective, the Permian Strategic Partnership aims to balance the needs of all affected parties—including landowners, lease holders, and logistics providers—and create attainable, shortterm solutions to our shared challenges.

$1.2b

‟The alliance between the Permian Strategic Partnership and TTI brings industry perspective and research-based results to the improvement of highway safety and operations in the Permian Basin. Together with the Texas Department of Transportation, we are applying innovative research strategies to provide a safer travel experience for everyone in the region.” Greg Winfree Agency Director, Texas A&M Transportation Inst.

Rural Widening Efforts

2019-2020 ANNUAL REPORT

|

23


INVESTMENT IN INFRASTRUCTURE

$600mm Secured Funding for Permian Basin Roadways in Texas

$99.5mm Secured New Funding for the New Mexico Department of Transportation

On the Road to a Safer Permian There were 195 traffic fatalities on Texas roadways in the Permian basin in 2020.4 If you’ve driven on Permian roads, you may understand why. Roadways designed for light traffic are now traveled by heavy trucks. Two-way access roads built in the '50s and '60s are crowded with traffic. Backup from busy intersections can turn highways into parking lots. As our population has grown, traffic has increased—and as a result, many roadways have become damaged or dangerous. The Permian Strategic Partnership is facilitating road improvements in Texas and New Mexico by leveraging the power of collaboration and public / private partnerships. Texas Road Improvement Projects: Building roadways across Texas is a big job.5 That’s why the Permian Strategic Partnership advocates for state-funded support of public roadways. The Texas Department of Transportation has committed $600 million in road funding to Permian Basin roadways in Texas, through a project called the Permian Promise. The Permian Strategic Partnership played a key role in bringing this funding, which represents a 40% increase over 2019 funding levels, to the region. Promise funding will help to improve road safety, increase capacity, and reduce bottlenecks. The Permian Strategic Partnership has also advocated for $75 million in federal funds through Better Utilizing Investments to Leverage Development (BUILD) grants. Two awards of $25 million were made in 2018 for rural widening and overpass projects, and one $25 million award was made for Interstate 20 in 2020. New Mexico Road Improvement Projects: In 2018, there were 49 crashes on US 285.6 On any given day, more than 4,000 cars on New Mexico Highway 128 are driving over the speed limit.7 Permian roads in New Mexico are in critical need of safety and capacity improvements—and the Permian Strategic Partnership is committed to being part of the solution. We have worked in close collaboration with the New Mexico Department of Transportation (NMDOT) since our organization’s inception, and our partnership is beginning to pay off. We were instrumental in helping the state secure $87 million in new funding for its District 2, which includes Eddy and Lea Counties. We also assisted NMDOT in securing a $12.5 million federal BUILD grant in 2019. The Permian Strategic Partnership has supported the creation of safety corridors on US 285 and NM 12, and is actively working to accelerate continued road funding and development.

‟Under the leadership of Texas Transportation Commission Chairman J. Bruce Bugg, Jr., state road funding for Permian Basin projects has increased by more than 40 percent. I am thankful to Chairman Bugg and his fellow Commissioners for standing with the Permian Basin and dedicating precious resources toward the Permian Promise, which is making our roads more safe and more reliable.” Don Evans Chairman, Permian Strategic Partnership 24

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


‟The Permian Strategic Partnership has been an invaluable partner in identifying needs and collaborating on innovative solutions to make driving on Texas roads safer and more predictable. Thanks to PSP Chairman Don Evans, the Permian Promise has made Texas and federal decision makers more aware of the Permian’s impact on all our lives and how crucial it is to our future to shore up Permian infrastructure now.” J. Bruce Bugg, Jr.

Chairman, Texas Transportation Commission


A once-in-aopportunity brou for a commo to strengthen th where we liv


-generation ught us together on purpose: he communities ve and work.


INVESTMENT IN THE WORKFORCE

Working to Build a Strong Future To power industry in the Permian Basin, we need people. An educated, well-trained workforce helps businesses thrive, strengthens local economies, and improves wellbeing for workers and their families. The Permian Strategic Partnership works together with local school districts, community colleges, state and local officials, and other organizations to attract, develop, and retain qualified employees and their families, across the Permian Basin.

28

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


$10mm The Permian Strategic Partnership committed $10 million toward the construction of a new Career and Technical High School in Hobbs, New Mexico.

2019-2020 ANNUAL REPORT

|

29


INVESTMENT IN WORKFORCE

‟The new career and technical education high school represents a quality of life improvement for our community. It will give students the skills to enter the workforce at a secondary level, as opposed to a minimum wage job. It also allows them to develop job skills that can help them fund post-secondary education. Our plan is to make the school available for local businesses, to help train their workforces in a state-of-the-art facility.” TJ Parks

Superintendent, Hobbs Municipal Schools

30

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


Making Career Technical Education a Community Effort Technical careers provide higher salaries, stable employment and

New Mexico Junior College. By getting an early start on career

essential services. So why don’t more students pursue them?

training and college education, students will be positioned for well-

Career and technical education (CTE) has been downplayed

paying employment upon graduation.

for decades—and as a result, many industries are experiencing worker shortages, while students are missing out on valuable

Businesses will also play a key role in the school, working with

opportunities. This is even more true in the Permian Basin,

educators to develop curriculum in line with industry needs, and

where technical workers are in high demand. To create new

offering internships and training programs that expose students to

opportunities for local students and begin training the workforce

real-world work environments. The Permian Strategic Partnership

of tomorrow, the Permian Strategic Partnership is helping to fund

is proud to contribute to this important development, which

the construction of a new career and technical high school in

shows how much we can accomplish when we work together.

Hobbs, New Mexico. The new school will complement Hobbs High School, which is nearing capacity and may soon exceed it. Approximately half of graduates from Hobbs already pursue technical track careers, either directly entering the workforce after high school or pursuing a twoyear technical degree.8 The new CTE facility will enhance students’ skills and improve workforce preparedness by offering a range of programs, including construction, hospitality, STEM, oil and gas, information technology, manufacturing, and transportation. It will also allow them to earn college credits and certifications while still

~$50mm

Total Community Investment Toward Construction of the New Career and Technical School in Hobbs, New Mexico

in high school, through a dual credit program in partnership with

Partnering to Meet Workforce Needs Permian schools need strong career programs. Permian businesses need educated workers. It’s easier to address the needs of our future workforce when schools and businesses work together. That’s why the Permian Strategic Partnership collaborated with the University of Texas Petroleum Extension and Petroskills Alliance, an oil and gas training coalition, to develop the Catalyst workforce program in 2020. Catalyst is a first-of-its-kind initiative to assess the Permian’s current education architecture, and develop a platform to streamline workforce integration. The program’s goal is to align curriculum for career training programs with current industry workforce training requirements. In its first phase, Catalyst will define the skills necessary for the region’s future workforce. Next, it will build an asset map of the current training ecosystem, identify gaps, and assess the system’s capacity for growth. Once this is complete, it will provide support to schools, fund engaging student programs, and facilitate connections between schools and Permian-based businesses.

2019-2020 ANNUAL REPORT

|

31


20% The Permian Strategic Partnership and Weidner Apartment Homes worked together to provide a 20% rent discount to teachers in the Permian Basin.

32

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


INVESTMENT IN HOUSING

Opening Doors in Housing The Permian population is growing—but as more people move to the region, it’s becoming more difficult to find housing. The U.S. Census Bureau recently identified Midland and Odessa as two of the fastest-growing communities in the country.9 Yet the pace of building homes and apartments in the region has not been able to keep up. Housing shortages and high rent costs are making it harder for many people to call the Permian Basin home. The Permian Strategic Partnership Housing Committee is working to accelerate housing investment at all price points. More housing options will make it easier to attract employees to the region, while improving home affordability for local residents.

2019-2020 ANNUAL REPORT

|

33


INVESTMENT IN HOUSING

Helping Teachers Feel at Home in the Permian Basin PSP's initiative will increase the possibility of affordable housing for teachers in the Permian Basin by:

200

Reduced Rent Apartments in Midland/Odessa

We want teachers to stay in the Permian Basin. Affordable housing can help. It’s a challenge to recruit teachers to a region where rent is high. That’s why the Permian Strategic Partnership entered a joint agreement with Weidner Apartment Homes, owner of several apartment complexes in Midland and Odessa, Texas, to make apartments more affordable for teachers. The two-year program gives teachers a 20% discount in rent for Weidner-owned apartments: Weidner Homes offers a 10% reduction in rent, and the PSP provides funding for an additional 10% of rent costs, through each participating school district’s charitable foundation. The initiative, which launched in 2019, provides reduced rent for 100 apartments in Odessa and 100 apartments in Midland. By the end of 2020, 187 of these units were occupied. It is anticipated that the remaining apartments will be leased in the fall of 2021.

‟I became a resident of Andalucia Villas / Weidner in September 2019 when it was very difficult to find housing, much less affordable housing. The agreement that I initially entered afforded me the opportunity to live in an apartment for a reasonable expense, and I was able to alleviate a lot of stress because I knew exactly what I was going to be paying for rent and utilities each month. Through the partnership, I was also able to payroll deduct many of the upfront expenses and saved $350 in an initial pet deposit.” Elisha Sessions Teacher, Gale Pond Alamo Elementary

34

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P



INVESTMENT IN CONNECTIVITY

Expanding Broadband Connectivity Within the Permian Basin Internet access has a bigger impact on economic growth than you might think. As more of our daily tasks shift online—from retail shopping, to education, to remote work, to watching television and listening to music—it’s becoming nearly impossible to live a modern life without high-speed internet access. Broadband is a vital part of our modern infrastructure. Without it, cities, schools, and businesses fall behind, and industries struggle to attract and retain employees. To help the Permian Basin cross the digital divide, the Permian Strategic Partnership formed a working group focused on broadband expansion. Our first project, launched in partnership with Starlink, SpaceX's new satellite internet access provider, is already making a big impact in improving coverage. We will continue to seek opportunities to enhance connectivity across the Permian Basin, improving quality of life and accelerating the pace of business.

36

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


$100k The Permian Strategic Partnership contributed $100,000 to provide free internet for a year to 45 families in Ector County through the Starlink satellite internet service.

2019-2020 ANNUAL REPORT

|

37


INVESTMENT IN CONNECTIVITY

Education Takes Flight with Starlink Satellites By 2022, PSP and Starlink will provide free satellite internet to a maximum of:

135

Families of the Permian Basin

We’re committed to supporting students—and the sky is not the limit. In 2020, the Permian Strategic Partnership brought Starlink high-speed broadband internet to students in Ector County Independent School District (ECISD). Beginning in 2021, ECISD will be the first school district in Texas to use Starlink. Starlink uses low Earth orbit satellites, which are over 60 times closer to Earth than traditional satellites, and can transmit data faster. The service is ideal for rural and remote communities, where connectivity has typically been a challenge. Because it does not require traditional ground infrastructure, Starlink can deliver broadband internet to locations where it was previously unavailable or unreliable. It’s an ideal fit for Ector County, where 39 percent of students lack reliable broadband access at home.10 Two high-speed internet service providers serve Odessa, but beyond city limits, infrastructure is lacking. Even before the pandemic, the Permian Strategic Partnership was in discussions with the district about increasing broadband access. A sudden shift to online

First School District in Texas to Use Starlink

learning accelerated the project’s urgency. The district quickly learned many of their students did not have internet access at all, while others had such poor connections, they were unable to support video calls—or they were dropped from calls altogether. One of the Partnership’s member companies had already reached out to SpaceX to inquire about connecting remote oil and gas equipment via satellite. Starlink is currently offering beta service in the United States and internationally.

38

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


In January 2021, Starlink beta service was provided to 45 families in ECISD who have no form of home internet access. The service will be expanded to include 90 additional families as network capabilities grow. Permian Strategic Partnership and Odessa Development Company will each contribute $100,000, and Chiefs for Change and the Moody Foundation will each contribute $50,000 to cover the cost for families, who will receive free internet access for one year. By 2022, 135 Permian families will have high-speed internet connections. It is our hope that this project can be expanded to meet the needs of other families in the Permian Basin, and ultimately improve connectivity across the region.

‟The relationship between ECISD and PSP is one of innovation, collaboration, and creativity. Our community is better today because of this partnership, and we know that even greater opportunity awaits.” Dr. Scott Muri Superintendent, Ector County ISD

2019-2020 ANNUAL REPORT

|

39


$1.5b The Permian Strategic Partnership published a report showing that $1 Billion invested in Permian Basin roads would deliver $1.5 Billion in economic benefits from increased safety and fewer traffic delays.

40

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


INVESTMENT IN COMMUNITY

Advocacy in Permian Basin Communities The Permian Strategic Partnership is committed to the communities where we live and work—and our investment shows it. Beyond our core focus areas, we also invest in initiatives that benefit the community as a whole, such as encouraging census participation to improve public funding, conducting assessments of local needs, and providing grant writing assistance. We are always interested in supporting projects that will improve quality of life in the Permian Basin.

2019-2020 ANNUAL REPORT

|

41


INVESTMENT IN COMMUNITY

‟The Grants Collective is excited to partner with the Permian Strategic Partnership to expand funding opportunities for communities and non-profits in Eddy and Lea Counties. All of us, working together, have the opportunity to make tremendous progress in southeast New Mexico.” Terry Brunner

CEO, The Grants Collective

42

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


Making Sure Every Permian Resident Counts Most Americans wouldn’t leave $716.3 million lying on the table.

don’t live in the region full-time, but they do spend more than 51

But according to a Perryman Group study commissioned by the

percent of their time in the Permian Basin, making it the correct place

Permian Strategic Partnership, that’s how much the region could

to submit their census forms.

lose in Federal funding, over the next ten years, if Permian residents failed to complete their 2020 Census forms. If no action had been

As with all 2020 efforts, COVID-19 made the project more

taken to increase census participation, one in 50 Permian Basin

challenging, but The Permian Counts was quick to adapt with

residents would likely go uncounted, according to the study.

intentional media coverage about changing deadlines, and

This could result in losses to funding for education, healthcare,

contactless methods to respond.

infrastructure, and housing. To encourage census participation, the Permian Strategic Partnership launched The Permian Counts, an education and awareness campaign, in March 2020. The campaign included a website, articles and videos, and testimonials from local and state leaders. Messaging focused on the impact of an accurate count, and the consequences of undercounting—including $1.1 billion in gross product losses, $42.9 million in losses to government entities, and 13,135 job-year losses. The campaign also provided education about who should fill out census forms in the region. For example, many local workers

The Permian Counts Campaign Created Awareness to the Positive Effects of the 2020 Census

Expanding Opportunities for Community Investment in New Mexico Grants can provide millions of dollars in support for local communities.

To date, the grant writing support has helped fund several

But to get the funds, you first have to ask. Applying for grants is

community initiatives in the City of Carlsbad, including school

a competitive process, and it requires significant time, experience,

violence prevention programs, training for first responders, and

and technical expertise. In 2020, the Permian Strategic Partnership

reimbursement for COVID-19 prevention costs. As we know well in

stepped in to assist New Mexico’s Lea and Eddy Counties in applying

the Permian Basin, it takes resources to get resources. It is our hope

for grants to help local governments, school districts, and nonprofits

that, by investing in grant writing, we can bring even more powerful

successfully compete for state, federal, and private grant programs.

projects to New Mexico.

The Partnership provided $500,000 in funds for professional grant writing resources—$250,000 per county. To maximize the impact of our investment, we partnered with JF Maddox Foundation, which provided an additional $125,000 for the program in Lea County, and The Grants Collective and Community Development Consulting Associates, which provided grant writing assistance and resources. Grants covered under the program will address the Partnership’s five

$500k Funds for Grant Writing Support

focus areas: public education, healthcare, housing, road safety, and workforce development.

2019-2020 ANNUAL REPORT

|

43


INVESTMENT IN COMMUNITY

92.3

billion bbl Barrels of Recoverable Oil

The Permian Basin: Unlocking the Full Potential The Permian Basin contains enormous untapped reserves—but to unlock the region’s full potential, infrastructure investments are critical. The Permian Strategic Partnership wanted to showcase the strengths of the Permian basin, while drawing attention to the need for investment in education, road safety, healthcare, housing, and workforce development. So, it commissioned an economic impact report, The Permian Basin: Unlocking the Full Potential. The report reinforces the region’s strong capacity, with 92.3 billion barrels of recoverable oil in its reserves, and 299.7 trillion cubic feet of recoverable natural gas—enough to meet U.S. household demand for 60 years. It also highlights statewide benefits, like 225,000 oil and

~300tcf Cubic Feet of Recoverable Natural Gas

gas energy jobs in Texas and New Mexico, and $105.72 billion in potential tax revenues and royalties toward state education funds in the next 30 years. However, it doesn’t just paint a sunny picture of the Permian horizon. It also points to problems like road safety, educational challenges, internet access, and infrastructure issues that need to be addressed. The Partnership enlisted the help of the Texas A&M University System to provide relevant data for the report—like highlighting what could be accomplished with regional investment. For example, the report found that $1 billion invested in local roads could prevent 4,500 fatalities and injuries, reduce traffic delays by 2.1 million hours, and provide $1.5 billion in economic benefits from increased safety and fewer delays. The main message of the report is that thoughtful, proactive investments must be made today in the Permian’s roads, broadband, schools, and housing, in order to successfully position the region for unprecedented future growth. Unlocking the Full Potential draws attention to the Permian Basin’s power and promise, and underlines the Permian Strategic Partnership’s role as a thought leader in the industry.

44

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P



One Powerful Partnership Investing in the Permian is the right thing to do, for the future of our industry, for the vitality of the region’s communities, and for the country. The members of the Permian Strategic Partnership feel a social responsibility to give back to this region that has given jobs, energy security, and economic stability to the U.S. The Permian Strategic Partnership is a new organization, formed just two and a half years ago—yet we have directly invested $48,477,329 in Permian Basin projects, and contributed to collaborative investments totaling $844,314,261. We are proud of the work our organization has accomplished so far, and we are grateful to each of our member companies, as well as our partners in business, government, and the private sector. We know our successes would not have been possible without their collective help and dedication, and we look forward to helping create an even more prosperous future in the Permian Basin.

46

|

P E R M I A N S T R AT E G I C PA RT N E R S H I P


‟Working with the Permian Strategic Partnership has shown what is possible when government, philanthropy, and the private sector work together toward common goals. As Governor of Texas, I am proud of the innovation spurred on by the PSP as we all strive to keep Texas the premier place to live, work, and raise a family.” Greg Abbott Governor, State of Texas

‟The Permian Strategic Partnership has helped to move New Mexico forward by providing innovative private-sector support for public needs. From investing in a forwardthinking new school in Hobbs to standing up behavioral health services in Carlsbad, the PSP is paving a new path for industry to give back to local communities.” Michelle Lujan Grisham Governor, State of New Mexico

Informational Sources: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

“Elevating Teaching, Empowering Teachers.” National Board for Professional Teaching Standards. https://www.nbpts.org/research/. Accessed 17 May 2021. “Changing the Landscape of Health Care in West Texas.” Texas Tech University Health Science Center, School of Medicine. 14 April, 2020. Accessed 13 May, 2021. https://dailydose.ttuhsc.edu/2020/april/som-changing-the-landscape-of-health-care-in-West-Texas.aspx “Building Safer, Better Roads in the Permian Basin.” Texas A&M Transportation Institute. 2020. Economic Report. Texas Department of Transportation. “2020 Fatalities - Permian Basin as of December 31, 2020 (2019 vs. 2020 YTD).” Permian Road Safety Coalition. https://www.permianroadsafety.org/wp-content/uploads/2021/01/YTD-Fatalities-All-Permian-1-1-thru-12-31.pdf. Accessed 18 May 2021. Wynne, Curtis C. “One of NM's deadliest highways gets increased patrols.” Hobbs News-Sun. 5 Oct. 2019. https://www.mrt.com/news/article/1-of-New-Mexico-s-deadliest-highways-gets-beefed-14496874.php. Accessed 18 May 2021. Reese, April. “Death highway: A massive oil boom in the Permian Basin has turned rural roads into deadly highways.” 1 July 2019. Searchlight New Mexico. https://nmpoliticalreport.com/2019/07/01/death-highway-a-massive-oil-boom-in-the-permian-basin-has-turnedrural-roads-into-deadly-highways/. Accessed 18 May 2021. Wynne, Curtis C. “One of New Mexico’s deadliest highways gets beefed up patrols.” 5 October 2019. Associated Press. https://apnews.com/article/46455308d37d458d9b7a3888c20211b6. Accessed 19 May 2021. “Hobbs Schools announces partners for CTE.” September 9, 2019. Hobbs News Sun eEdition. http://digital.olivesoftware.com/Olive/ODN/HobbsNews/shared/ShowArticle aspx?doc=NHN%2F2019%2F09%2F22&entity=Ar00108&sk=01960E80&mode=text. Accessed 19 May 2021. “New Census Bureau Estimates Show Counties in South and West Lead Nation in Population Growth.” United States Census Bureau. 19 April, 2019. https://www.census.gov/newsroom/press-releases/2019/estimates-county-metro.html. Accessed 18 May, 2021. Brown, Marquita. “A Final Frontier of the Digital Divide: Getting Wi-Fi to the Most Remote Areas.” EdTech. 16 Dec. 2020. https://edtechmagazine.com/k12/article/2020/12/final-frontier-digital-divide-getting-wi-fi-most-remote-areas. Accessed 18 May 2021.


www.permianpartnership.org