Case Study
Permian Basin: America's Shale Revolution
Texas / New Mexico, USA
1920s – 2024
Key Stakeholders
Oil companiesLocal communitiesLandownersEnvironmental groupsRegulators
What Critics Say#
Environmental and community groups argue:
- Fracking causes water contamination and earthquakes
- Air quality impacts harm local residents
- Methane emissions undermine climate benefits
- Boom-bust economics destabilize communities
- Short-term thinking depletes resources
What Supporters Say#
Industry and supporters argue:
- Shale created U.S. energy independence
- Hundreds of thousands of jobs created
- Local economies transformed
- Technology continues improving
- Environmental performance improving
Context#
The Permian Basin, spanning West Texas and New Mexico, became the epicenter of America's shale revolution. Production grew from under 1 million b/d in 2010 to over 6 million b/d today.
Economic Impact
- ~300,000 direct jobs
- $95 billion annual economic output
- Major tax revenues for Texas
- Land royalties for property owners
Key Issues#
Environmental Concerns
- Water use in arid region
- Induced seismicity from wastewater injection
- Methane and VOC emissions
- Flaring when pipeline capacity limited
Community Impacts
- Rapid population growth strains infrastructure
- Housing costs spike during booms
- Crime and social disruption
- Economic volatility
Sustainability Questions
- Decline rates high for shale wells
- Continuous drilling required
- Long-term economic viability uncertain
- Transition planning limited
Outcomes#
The Permian Basin illustrates both shale's potential and challenges:
Achievements:
- U.S. became world's largest producer
- Energy security improved
- Technology proved revolutionary
- Economic benefits substantial
Ongoing challenges:
- Environmental impacts persist
- Community stress during booms
- Long-term decline inevitable
- Transition planning inadequate
The basin's future depends on balancing extraction with community and environmental needs.
Timeline
1920s
Conventional oil discovered
2010
Horizontal drilling + fracking enables shale
2019
Permian becomes world's largest oil field
2024
Production exceeds 6 million b/d