The Permian Basin is facing a double threat of supply glut of a consequential price war of oil, and the novel coronavirus decimating the foundation of its economy – the oilfields. It has affected thousands of jobs for residents, inside and outside . The Mayor of the largest city in the largest county has seen the brunt of it. While he is remaining optimistic, he knows the immediate future will be tough.
“As a city we already are seeing layoffs in the hundreds if not thousands… Just about everything we’re doing right now will be a slow fix as we are moving forward.”Patrick Payton, Mayor of Midland
Experts, and Payton, say that in order to properly estimate how long this downturn will last, they point to the national and global demand of oil must meet the supply. For that to happen, consumption will need to resume. President Trump estimated 40 percent of the oil market has disappeared.
Payton thinks that current time table could be months, if not years.
What I’m hearing as far as those are trying to make predictions, figure out how long it will take to get back maybe to not where we were but ahead of where we were, that 2 years is a fairly conservative estimate, I’m hoping things are faster. a 24 month turnaround could be effective for us and we are going to have to see the world economy rebound in that time as well in that time because it’s the world economy that has hurt the demand economy, that’s why we are where we are, so I’m hearing anywhere from 2 years, hopefully less but hopefully not too much longer than 2 years.Patrick Payton, Midland Mayor