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

Sources (3)