This oil-rich area of West Texas known as the Permian Basin is experiencing a domino effect from compound crises. Midland and Odessa are the largest cities in the Permian. The collapsing oil industry is causing a housing crash, especially in Odessa. Real estate in Odessa is projected to be the hardest hit area globally with coronavirus restrictions and the catastrophic decline in the oil market combined.
I’ve personally seen two RV parks experience a 50% exodus of guests. The people leaving, approximately 100 in just two small parks, have lost their jobs. Many others remain, although currently unemployed. These workers have lost their livelihoods. As a result, the RV park owners have lost about 50% of their income.
With fewer residents in the park, water and electrical usage have been almost cut in half. This may seem like a good thing for the environment, but we must keep in mind that utilities are also businesses. These companies, along with others, will soon experience a serious drop in revenue.
Due to the mass exodus, the RV parks have cut the number of times their dumpsters are being emptied in half. These may seem insignificant statistics, but the West Texas disposal companies are experiencing these cutbacks from multiple local companies. They will also have to deal with less income. This will probably be addressed by cutting hours or laying off “essential” employees. When profits fall, employees pay the price.
Compound Crises = Domino Effect
Combined with the current coronavirus shutdowns, this area is facing an extremely dire future. As businesses reopen, they will encounter fewer customers and unemployed clients. Each hit that the economy takes on one business causes the domino effect on suppliers and service providers.
The U.S. economy is tumbling down a spiral that may not be recoverable. With such devastation in just this small area of the country, it is inconceivable that state and local officials are refusing to allow business owners to open their doors and attempt to recover. Not stimulus or bailouts, but a personal attempt at recovery. When businesses reopen their will again be a demand for fuel and, at least the oil industry, may be saved.
It’s past time to get back to work. The American spirit can pull us out of this mess. America began with a huge risk that a group of settlers chose to take. They risked their lives to form this nation. Now it’s time for those who wish to take what some call a risk by going back to work. Let’s finally follow the science. The risk of dying from this virus is minuscule. In response, we’re killing our economy.
As AOC cheers for the oil industry crash, we are in West Texas watching the dominoes fall.
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Enjoy the Journey!