Permian Infrastructure

The Permian Basin has a growing economy and workforce, and more families are relocating there for new opportunities. Transportation volumes are growing and demand is increasing for basic services, yet the existing infrastructure is strained and requires significant investment.

The Permian Basin spans 86,000 square miles with over 17,000 centerline miles of road and highway running through it. Safe, well-built roads are essential for millions of Americans to travel to work or school each day, and for businesses to transport goods and services that drive the economy. However, most roads in the Permian Basin were built decades ago and designed for light use across smaller communities. Economic activity has dramatically increased roadway use, and as more large trucks and vehicles travel through the area each day, the existing infrastructure is not only insufficient, but unsafe. Hydraulic fracturing has unlocked great reserves, improving energy security and stability for the U.S. However, horizontal drilling requires the increased use of heavy vehicles, stressing Permian roadways. For each horizontal well, roughly 4,000 to 7,000 truck trips are needed over 45 to 75 days.20 The Permian Basin peaked at 568 rigs in fall of 2014, requiring more than 3.8 million trips. Rig counts dropped during the COVID-19 pandemic but have rebounded. The total rig count on July 15, 2022 was 350 and is expected to continue rising. To support this growth, existing Permian infrastructure requires improvement.

The growing population is leading to increased traffic on Permian roadways, which has caused a spike in fatal and serious-injury crashes. However, recent improvements made possible by the Texas Department of Transportation’s Permian Promise program and increased awareness in the Permian Basin are beginning

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to show results. The latest infusion of $600 million in TxDOT funding provided by the Commission for Permian Basin priority projects has gained wide support at local, regional, state, and federal levels for increased investment in road safety issues and energy roads. During the 2019-2021 time period, the Midland/ Odessa area experienced a 23% reduction in fatalities and a 30% reduction in overall vehicular crashes.

New Mexico Department of Transportation led commitments under the Governor’s administration of $241 million in Lea and Eddy counties.

A recent Texas A&M University study showed that a $1 billion investment in the Permian Basin’s transportation infrastructure, including widening roads and adding passing or turn lanes, could prevent more than 4,000 crashes and nearly 180 fatalities over a 30-year period. The investment would also reduce traffic delays by more than 270,000 hours each year.

Public awareness is also key to reducing crashes. As fatalities continue to increase statewide, it is imperative that Permian Basin communities prioritize and encourage traffic safety while highway improvement projects are developed and constructed.

In addition to transportation investments to promote road safety and support the physical economy, the region’s information technology infrastructure also requires funding, including expanded access to broadband internet service. Broadband is no longer a luxury, it is a basic public utility for families, students, and at-home workers.

A significant investment in the Permian Basin’s broadband infrastructure would make a tremendous impact on education, economic and workforce development. A study conducted by Connected Nation showed that for each household with reliable internet access, the economic benefit equaled $1,850 per household. The rural sections of the Permian Basin are predominantly served by fixed wireless and satellite broadband providers. These are generally considered the slowest and least reliable of broadband options and are very costly (up to $150/ month for 3MBps service).

The Texas Education Agency’s Operations Connectivity Task Force estimates that 2.3 million of their 5.2 million students do not have access to reliable and affordable internet service (unserved or underserved). A majority of these students are in rural communities. New Mexico’s statistics are very similar with more than 30% of students without reliable internet access. New Mexico Department of IT estimates that the cost to connect New Mexico would be from $1 to $5.5 billion.

The Permian Basin’s most treasured resource is not energy, but the talented and hardworking people who call the region home. Critical investments are needed to support and protect the people who live and work here. Thanks to investment from the Texas Department of Transportation, the New Mexico Department of Transportation, and other agencies, we are seeing more orange cones of progress on our highways. However, significant work remains to ensure the Permian Promise supports the projected growth of the Permian’s industry activities. Highway infrastructure must continue to be improved and maintained to ensure the safety of our residents and the reliability of our complex freight and supply chain networks. Investments in reliable and affordable internet service will enhance economic development, healthcare and education to all residents across the region.

Proper planning and strategic funding for critical infrastructure can save lives and support livelihoods.