Posted on 05/30/2013 7:35:59 AM PDT by SeekAndFind
New figures from the Bureau of Labor Statistics confirm what everybody already knows: If youre looking for a job in Cleveland, Ohio, your best bet is a one-way ticket to Midland, Texas.
Midland is not the most scenic spot in the United States. (Its sister city, Odessa, was described as the worst town in the world in Larry McMurtrys Texasville.) Imagine one square mile of downtown Atlanta plopped into the middle of a largely featureless savannah and youll have the idea. But the average rent on an apartment there is nearly twice what it is in nearby cities of comparable size, and rents are up more than 20 percent year over year if you are lucky enough to get an apartment. Official unemployment is about 3 percent; real unemployment is effectively zero. The reason for that is a booming energy industry. But its a different kind of boom: Whereas previous Texas oil-and-gas booms have been driven largely by prices, this boom is under way when oil prices are high but not dramatically so, and natural-gas prices are on the low side (last year, they were at 13-year lows). This isnt a price bubble, but real production improvements driven by technological advances.
Nellwyn Barnett of the Midland Chamber of Commerce is not telling any fairy tales. Sure, the capital of the West Texas oil patch has tried to diversify its economy, and has had some success, but its still an energy town. Energy is our bread and butter, our primary industry, she says. Rather than try to paint a picture of a diversified economy for the media, we embrace energy. But there has been a great deal of diversification within the industry, which gives us a lot more stability than weve had in our past. While wind energy is a significant economic presence on the edges of the Permian Basin, hydraulic fracturing and horizontal drilling mean that oil-and-gas outfits can go after more sources of energy from previously impractical locations. And horizontal drilling means that they can do so with less surface-level environmental impact. Among the non-energy businesses setting up shop in Midland, the city is particularly proud of XCOR, a private aerospace firm specializing in suborbital flight and rocket-engine development. Both its headquarters and its R&D facilities are relocating from their original location in Mojave, Calif. In addition to the obvious economic benefits, the move will confer a unique distinction on the city: Midland International will be the only facility in the United States that is both a commercial airport and a designated spaceport.
Spacecraft and oil rigs might seem to be miles apart, but in truth the two high-tech industries have a great deal in common: a constant need for engineers, technicians, and scientists, a focus on materials development (XCOR has a line in developing non-flammable plastics), and shared environmental concerns.
Like their counterparts in the rest of the country, Midlands oil-and-gas operators have been collaborating to keep ahead of environmental issues, working from the theory that they are better off in the long run going above and beyond what the law requires than pushing the envelope with the EPA and state regulators. Case in point: The sand dune lizard, as homely a West Texas creature as there is, had become a candidate for the endangered-species list. Rather than wait around for environmental regulators to tell them what they may and may not do in the lizards habitat, energy companies in Texas and New Mexico got together with state lawmakers, drew up their own conservation action plan, and presented it to the Fish and Wildlife Service, which signed off on voluntary conservation agreements that will protect nearly 90 percent of the lizards habitat. (Texas comptroller Susan Combs, who announced on Wednesday that she would not seek elected office again in 2014, was instrumental in putting the deal together.)
Rather than say, We cant do this, were saying How can we do this while maintaining the ecosystem? Barnett says. The current legal standards may be good for today, but what about tomorrow? Were taking a long-term approach.
The downside, if you want to call it that, is that Midland and the surrounding areas have been left with some pretty high-class problems: There are not enough houses and apartments for all of the new workers flooding into the Permian Basin, and the allure of high-wage jobs in the energy industry has made it hard to hire people for jobs in retail, services, and most critical education. Last year, Midland was obliged to petition the state for waivers of student-teacher-ratio rules in its schools. Getting back within state guidelines has meant hiring new teachers, which has been a challenge with so much competition from the energy business.
Educational institutions are a critical factor: Midland College, the University of Texas of the Permian Basin, and Texas Tech University all offer energy-oriented academic programs that help keep the oil and gas rigs staffed. Since it is harder to get people to move to West Texas than to get them to move to the big coastal metropolises, Midlands work-force strategy is focused locally.
But those tempted by California or the East Coast should know this: According to a 2012 report from the Bureau of Economic Analysis, Midland had a higher per capita income than did Silicon Valley, and the second-highest per capita income in the nation, trailing only the posh Connecticut suburbs of New York City. At the opposite end of the employment spectrum is Atlantic City, N.J. Having spent some time in both cities, I can tell you that you will seldom find two towns as different as Midland and Atlantic City. Atlantic Citys economy is based on a fundamentally non-productive enterprise gambling the politics and economics of which I explored at some length here. An economy based on gambling has foundations in fantasy; an economy based on energy has its foundations in the real world. There will be ups and downs, inevitably, but the energy industry, plagued for decades by short-term thinking and fly-by-night business models, shows every sign of settling in for the long term. Unless the federal government suffocates it a real danger it has the potential to transform the U.S. economy. And not only in Midland: The only thing preventing an energy renaissance in New York and California is politics.
West Texas is not for everyone, Barnett says. For people relocating from other parts of the country, it can be startling. In other words: It aint pretty, but it works. But, she adds, if you want a job in Midland, Texas, you can find it. If you happen to be in El Centro, Calif. (unemployment rate 24 percent), Cleveland (4,300 jobs lost last year), or Atlantic City (4,700 jobs lost last year), a regular paycheck might prove to be a lovely thing. Try not to step on the lizards.
Kevin D. Williamsons new book is The End Is Near and Its Going to Be Awesome.
When I was in college at Texas Tech in Lubbock 20 years ago, one of those magazine salesman knocked on my door. She said it was her first time to be in a desert. Desert? Obviously she’s never been to Arizona, Nevada, or southern New Mexico.
In some parts of West Texas, they lack an abundance of trees, but that doesn’t make it a desert.
Well, down here in Midland/Odessa we really are part of the Sonora desert. :)
That’s a fact. Really can’t farm much here in Odessa’s county (Ector). Too darn dry!
It's also home to the Commemorative Air Force. If you haven't seen the nose art, well, it's a treat.
“You just thought it was Nowhere but I can assure you that you can see it from there since it’s just that flat. For that matter, you can stand on top of tuna can and look around the world to see the back of your own head.”
Now that’s funny! Would like to go back there. So close to many great things to see.
Home of real Texans and Real Americans, God-fearing, military loving, Constitution-loving, Old-fashion ideal loving Americans.
Sounds identical to the situation here in western North Dakota.
With work, I can stay in NYC for less. No wonder I hear of daily van runs from Abilene and even further.
I may look out there for temporary work until my new job starts paying off ...
There are some long drives to and from work out here on very crowded highways (I have a trip coming up and I’m nervous getting on I-20). And...yes, the hotels are prohibitive! Hope you find something!
And welcome to Odessa/Midland! :)
The best thing I ever saw was Midland in my rear view mirror as I pulled out of town headed for college!
Sounds like Heaven.
Midland/Odessa is a crucible of harsh weather, sandbox terrain and a boom or bust economy. If you can live and work there, you can survive just about anywhere. Wimps need not apply.
Let me tell you something, I love the armpit of Texas if the smell is raw oil.
You beat me to it.
Absolutely don’t drink the tap water. Don’t brush your teeth with it. Don’t cook with it. And don’t even smell it.
If where I work goes south, I will look at Texas. Odds are someone can use an experienced IT guy who fixes stuff out there.
With all the computers being utilized around here for the oil business, I’d bet on that for sure!
I make an actual OK salary but if my job went away, fat chance of finding anything that paid even half of what I make now out here. I would bite the bullet even as much as the spousal unit would freak and try my hand out there. Odds are I would be going alone.......
I think that’s “Monahans?” I’ve driven past about 100 times.....
Few people believe that but those of us who have been out in West Texas know that for a fact! ;^)
Gentleman finally stopped in a 5/4 flatbed with stakes, and took me to my front door in Canoga Park, CA.
Truck was old, top speed was fifty, and the steering box was shot, needed to go almost 10-15 degrees to either side continuously to maintain straight line drive. Had a good time!
If you don't have these, you aren't in the Sonoran desert:
Y'all are in the Chihuahua desert.
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