OZ Outlook: Permian Basin
The Permian Basin, and in particular the Western Delaware Sub-Basin has experienced explosive population growth due to increased oil & gas activity over the past 24 months. The sub-basin’s infrastructure is woefully inadequate for the rapid increase of workers, equipment and trucks. OZ Capital has identified the QOZ in Loving and Reeves county as a focus area for infrastructure, healthcare and real estate investment.
“When...oil companies review their business plans and consider their greatest concerns, he said it’s not sand or pipeline capacity or technology. ‘Collectively, they say it’s schools, roads, doctors and housing.’” – Tim Leach, CEO, Concho Resources at Midland Chamber of Commerce
“Midland’s population is burgeoning, and the Midland Development Corp. (“MDC”)…recognizes the urgent necessity for expanded capacity in housing, child care and roads, and is working to address those issues. We look forward to more participation in infrastructure, health care, and education as we establish partnerships to meet Midland’s needs.” – Sara Harris, Interim Administrator, MDC
Permian Basin region is 2% of Texas population but accounts for 10% of state highway fatalities. – Texas Energy Sector Rural Improvement Program.