PERMIAN BASIN (YourBasin) – With the recovery process underway in Texas many are looking to get the economy back to the levels before the collapse.
In MOTRAN’s conference, State of the Basin, panelist Doctor Bradley Ewing from the Rawls College of Business at Texas Tech University, states strategically investing in critical infrastructure in the oil and gas industry is projected to speed up the recovery process.
“And by strategic investment, I mean things like these big projects that we see going on. Whether it’s a storage facility, hub, pipeline, those types of infrastructure projects,” says Ewing, “those have a lot of economic benefits in the area.”
And, with those projects, Ewing states that the economy will strengthen and shorter periods during economic downturns.
“It shortens up, essentially, the size of those cycles and it shortens up or reduces how long they last,” says Ewing.
An example Ewing gives is the pipeline project that will run from Wink to Webster as a prime example. Ewing states that the project is around halfway complete and expected to carry a million barrels of crude oil a day.
According to Ewing’s analysis, this project will speed up the Basin’s economy by 35 weeks.
“This type of investment these private sector investments in critical infrastructure, Wink to Webster is just one example of them,” says Ewing, “there are going to be broad economic effects that strengthen the resiliency of the Permian Basin.”
The broader economic benefits include short and long term including investment and recovery in the short term. As well, growth, stability, and competitiveness in the long term.