The “Brain Drain” Issue

The Permian Basin is the undisputed leader in American oil and natural gas production—with all due respect to our colleagues and compatriots in North Dakota. With this stature comes enormous responsibilities, not just from the oil and gas industry and its workers, but across the states and counties of the Permian as well. Being so far removed from population centers, the Permian is a frontier where thrives the grit and can-do, will-do attitude of the people who live here. Given how environmentally challenging and physically remote the Permian is, it is not surprising that some will say it is not for everybody. One way that concern shows itself is over the question of “brain drain.” Does our region lose workers and families because of its remoteness, ruggedness, and isolation from big metro-style living? That’s the question. Our preoccupation with “brain drain” is a legitimate concern worthy of review.

In a sense, the Permian is no different from any other place around the country, or the world: some part of the native population will move away, never to permanently return. For a (relatively) sparse population (506,000 people) spread across a large geographical area (86,000 square miles) the conditions here would understandably seem ripe for an outmigration. Just as demographic researchers have told us repeatedly, populations have been moving from rural to urban areas for more than 100 years.

That being so, local governments and industry leaders are rightly concerned to assure that this dusty, arid, windswept, and austere Chihuahuan Desert environment doesn’t eventually suffer enough outflow to relegate the Permian to a collection of degraded ghost towns (though there are a famous few).

For those clutching their pearls over brain drain in the Permian Basin I’ve come to deliver the good news: you’re wrong—really wrong. The population in the Basin overall is increasing, has been increasing, and population projections show nothing but increase. There are a few simple reasons for why this is true and we will explore some of the contours as to why the future is nothing but bright for the Permian Basin and its current and future residents.

 

Brain Drain: Understanding the Phenomenon

“Brain drain” generally refers to the emigration of highly skilled and educated individuals—or those seeking education and gaining skills—from one region or country to another, often resulting in a loss of talent and expertise. This phenomenon can especially impact the more rural and remote areas in the Permian Basin. Some of the factors that exacerbate brain drain are lack of educational and employment opportunities, as well as the desire to obtain a better quality of life in general.

Fortunately, there is a confluence of factors that contribute not only to the lack of outflux, but to the growth of the region. These include raw economic demand for a robust workforce, the expansion of educational opportunities, and steadily increasing quality of life. Let us review in turn these factors.

 

The Permian Basin: Economic Powerhouse

The Permian Basin’s economic importance is underscored by staggering statistics reflecting its unparalleled contribution to the energy sector. According to data from the U.S. Energy Information Administration (EIA), the Permian Basin accounted for approximately 40 percent of total U.S. crude oil production and nearly 20 percent of total natural gas production in 2023. This remarkable output has translated into substantial economic gains, with the region supporting over 500,000 direct and indirect jobs and contributing over $300 billion to the U.S. gross domestic product (GDP) annually, as reported by the Permian Strategic Partnership. Looking ahead, the EIA projects continued growth in oil and gas production from the Permian Basin, forecasting a 14 percent increase in crude oil production and a 17 percent increase in natural gas production by 2025. These projections underscore the Permian Basin’s pivotal role in meeting both current and future energy needs, ensuring economic significance for decades.

The needs of the future will only be greater as the region continues to grow in a managed and sustainable way. The Permian will need to keep importing talent, as it always has—no doubt. Of course, it would be foolish not to develop the natural resources of our own people, and this has become something of a secret weapon and another section of casing in the deep well to tap the reservoir of local talent.

 

Educational Opportunities

Access to quality education and research opportunities plays a crucial role in attracting and retaining talent in any region, and especially in such technological industries such as oil and gas. In smaller communities across the Basin experiencing brain drain, the lack of robust educational institutions and research facilities can hinder the development of a skilled workforce and innovative ecosystem overall (sorry, Jal and Mentone). This dearth of educational resources often leads talented individuals to seek opportunities elsewhere, where they can access better training and professional opportunities.

What is not seen from a 30,000 foot view above the region is the vast network of trade, technical, and higher education networks and partnerships that have been formed—decades ago—precisely to head off the problem before it became a problem. This is emblematic of the cooperative nature that civic, educational, and industry leaders have fostered together.

Southeast New Mexico College, Odessa College, New Mexico Junior College, Midland College, Sul Ross State University, Howard College, and The University of Texas at The Permian Basin (UTPB) have for years played critical roles in providing higher education options for Permian residents. By offering local, affordable, and area-specific programs, these schools have been instituted for the sole purpose of providing everyone in the Basin access to higher education without having to leave.

In the Permian Basin, Midland College, Odessa College, the University of Texas at The Permian Basin, and New Mexico Junior College are educational institutions that have developed training programs available to meet the evolving needs of the oil and gas industries, thus driving economic growth in the region. Access to specialized training or advanced degrees in fields like petroleum engineering, geology, and environmental science have increased the talent pipeline and help the region’s ability to compete globally.

The Permian Strategic Partnership, an alliance of local governments and 25 major industry employers, just recently added its first two non-industry partners, The University of Texas at The Permian Basin (UTPB) and Texas Tech Univerity, to address the education and research gap. The Partnership acknowledges that solutions require a multifaceted approach, including increasing funding for STEM (Science, Technology, Engineering, and Mathematics) education, fostering collaboration between universities and industry stakeholders, and incentivizing investment in research and development initiatives.

 

Changing the Trajectory

While the above is absolutely essential to growth in the Permian Basin, it is useless if students either can’t be accepted due to poor academic attainment (grades) or choose not to go in the first place. Luckily there are people and programs that are changing the trajectory in the Permian. By focusing on the quality of kindergarten to 12th grade education, students are better prepared for college, work force, or military by the time they graduate high school. These programs focus on resources and opportunities here in the Basin, emphasizing that whatever is sought outside the Permian can (for the most part) be had here—and with a much better paying job to boot.

Mike Mills of ACCESS (Avatar Center for Communication, Engagement, and Student Success) in Odessa explained the unique nature of the ACCESS for SUCCESS program, “It’s a GPS from education to career, showing students how what they are studying directly relates to a job and career opportunity, Mills said.” Indeed. There needs to be a balance between the promise and the payoff. When one can see the payoff they are more likely to believe the promise that it is attainable. This is where the ACCESS program really shines, Mills says.

“Three high school graduates with job offers IN HAND. $84k, $96k, $122k. A year. Right out of high school. This is the power of our local business partners,” Mills proudly tells me, the smile unseen but heard clearly through the phone.

It is a testament that so many mid and large sized employers in the region have ponied up to put their proverbial money where their mouth is and engage the community through enlightened self-interest to improve their own potential talent pool. Kendall Gray of the Education Partnership of the Permian Basin is instrumental in making sure that the overall needs across the Permian schools are being met to have students “College, Career, and Military Ready (CCMR)” and prepared to enter into well paying Permian Basin-based jobs that lead to more lucrative future career potential. She explains to me that, “It is important to show students that it is possible to have a good quality of life living and working in the Permian Basin.” Initiatives such as the Energy Pathway Initiative (EPI), supported by the Permian Strategic Partnership, are created to provide specific industry education and training both in high schools and higher education institutions. By providing valuable data from across the region on enrollment, programs, graduation rates, courses, birth rates, and more, the EPI provides a “landscape document” of the state of educational readiness, helping local students to succeed not only in the Basin but anywhere their lives may take them in future.

 

Quality of Life

Quality of life is a multidimensional concept influenced by various factors that contribute to an individual’s overall well-being and satisfaction with their life circumstances. While the specific factors can vary based on personal preferences, cultural backgrounds, and socioeconomic conditions, some major factors that commonly contribute to quality of life include:

1. Healthcare Access and Quality

Access to affordable and effective healthcare services, including preventive care, treatment options, and mental health support, plays a crucial role in determining quality of life. Quality medical care has not been much of an issue in the Permian. Nonetheless, the recent 10 million dollar grant by the Permian Strategic Partnership and the Scharbauer Foundation to UTPB will strengthen the mental and behavioral health workforce in the Permian Basin. UTPB will cover tuition and mandatory fees for graduate students who live in one of the 22 counties that make up the Permian Basin and are majoring in Clinical Psychology, Social Work, Counseling, or School Counseling.

2. Economic Well-being

Financial stability, employment opportunities, income levels, and cost of living significantly impact an individual’s quality of life. This is a key strength, and lure, for young, determined workers to come live and work in the Permian Basin.

3. Education

Access to quality education and lifelong learning opportunities enhances personal development, career prospects, and overall life satisfaction. Educational attainment is often correlated with higher income levels and better health outcomes. As noted here, educational opportunities are only growing in the Basin.

4. Housing and Living Conditions

Affordable, safe, and comfortable housing options contribute to a higher quality of life. Factors such as housing affordability, neighborhood safety, access to clean water, and sanitation facilities are essential for overall well-being. New, quality construction has seen a resurgence since the COVID pandemic, providing housing for those who come here, plus more options for those already living here.

     5. Social Support and Relationships

Strong social connections, supportive relationships, and a sense of belonging within communities positively influence mental health, emotional well-being, and overall life satisfaction. This is a linchpin as citizens in the Permian are some of the most tightly knit communities in the United States. Enter any breakfast joint or restaurant and you’re bound to know at least one person.

6. Work-Life Balance

Balancing work responsibilities with personal life, leisure activities, and family time is essential for reducing stress and enhancing overall happiness. Flexible work arrangements and access to recreational facilities can contribute to a better work-life balance. This is one factor that definitely leans more towards “work,” rather than “life,” given the outsized demands of the oil and gas industry. Workers rotations can be 14 days on, with 7 days off, clearly tipping the scales.

7. Environmental Quality

Clean air, water, and natural surroundings contribute to physical health and psychological well-being. Environmental factors such as pollution levels, green spaces, and access to recreational activities impact quality of life. While we sit in the middle of the most prolific oil and gas production fields in the world, there are consequences of living in a mostly industrial area. Regardless, municipalities are constantly addressing these issues and improving public spaces.

8. Safety and Security

Feeling safe in one’s community, whether from crime, natural disasters, or other threats, is vital for overall well-being and peace of mind. While there are always those that would seek to take rather than give, by and large, security in one’s home and possessions is not a major factor.

9. Cultural and Recreational Opportunities

Access to cultural events, recreational activities, arts, and entertainment enriches people’s lives and contributes to their overall happiness and satisfaction. With an abundance of local and state festivals, theaters, new parks, and green spaces, the main population centers of the Permian are filling the gap.

10. Personal Values and Fulfillment

Pursuing personal goals, hobbies, interests, and values that align with one’s beliefs and aspirations enhances life satisfaction and contributes to a sense of fulfillment. This is one area where the Basin shines. As a reflection of Texas and the ideals of our Founding Fathers, the Permian Basin is unmatched in individuals leading their lives the way they want. Personal autonomy is the greatest gift endowed by our Creator and folk in the Basin are living proof.

 

The perception of, and actual quality of, life in the Permian has been rising over the years [see accompanying item], with sustainable growth initiatives from the local and municipal governments and the development of better infrastructure to handle the ever-increasing population of the region. The influx of younger and more educated people tends to drive growth of new businesses. The expectations for quality of life have risen in the Basin, as younger people demand more quality and variety in their shopping, dining, and experiences. West Texas and southeastern New Mexico have always had sizable Hispanic population, but now there are growing West African, South American, and Pacific Rim transplants bringing not only their cultures but their business savvy and tenacity to make it in a region that applauds risk takers.

 

Analyzing the Data Reveals an Incredible Truth

According to the U.S. Census Bureau and the Permian Basin Regional Planning Commission, the population of individuals between 18 and 30 has actually increased over 10 percent from 2016 to 2023. In 2016 there were 112,500 people in this category, topping out at 124,726 (as of June 2023). More statistics back this up: the average age in the Permian Basin is currently 36, compared to 38 for the United States.

As former Head Coach of the Midland High School, Craig Yenzer is uniquely positioned to see the realities on the ground. “I see former students all the time. Guys and gals I knew who graduated as far back as 2004, but all the way [up] to 2017, even. Sure, some will go away to university, but they seem to mostly be returning, buying homes, and raising families.”

There really isn’t much surprise in this when one considers a few objective realities. First, the predominant industry requires mostly young men who do the hard and difficult work in the oil field. Second, salaries of those working in the oilfield are higher on average in the Basin (depending on one’s type of work) than salaries in other areas of the Permian when adjusted for educational attainment. A young person without a college degree can soon be making six figures a year—not an easy feat to accomplish across the rest of the nation.

The numbers don’t lie; look at the top ten largest population centers in the Permian:

City	State	2010 Population	2020 Population	Percent Change
Carlsbad	NM	26,138	30717	17.47%
Odessa	TX	99,940	123,334	23.42%
Midland	TX	111,147	146,038	31.37%
Big Spring	TX	37,282	27,290	0.03%
Hobbs	NM	34,122	42,281	23.92%
Andrews	TX	12,718	15,105	18.74%
Pecos	TX	9,501	9,970	4.94%
Seminole	TX	7,972	8,979	12.63%
Lamesa	TX	9,422	8,515	-9.63%
Monahans	TX	6,953	8,430	21.27%

• Source: U.S. Census Bureau

 

 

Implications for the Future

Even as the economic base of the Basin is diversifying, there will long be a need to plan, build, support, and maintain the oil and gas production infrastructure for the foreseeable decades. This will continue to provide younger workers opportunities unmatched in the rest of the country. And let’s face another sobering fact: it takes a special kind of person to live in the Basin. If one is born here, there comes with it a very special sense of independence and pride, even for Texas, a state that outranks most of the world in down home loyalty.

Justin Roberts, a resident in the Basin and an oilfield worker, subscribes to the current analysis. “I’ve been to other places, but no place is like the Permian Basin. I live in Midland, but have traveled to every corner of the Basin. There’s nothing else quite like it.” Indeed this is true. While some may leave the Basin in search of fame or fortune, many return as they are unable to find that particular type of charm and lifestyle afforded by the Permian.

The lure of larger metropolitan areas such as Austin, Houston, and San Antonio has drawn citizens from across Texas, and will continue to do so. However those areas are much larger and have the capacity to absorb the large influx of people as we have seen the last decade, especially from states such as California.

For the most part, unless one is born in the Permian Basin, or moves here to pursue a career in the oil and gas industry, outsiders aren’t lining up to purchase bungalows in Big Spring, Orla, Lamesa, Loving, Artesia, Odessa, or Eunice. One has to be from the Basin to appreciate what it means to return and live here.

The extent to which the Permian Basin retains a healthy outsized sense of self is easy to see. It means something to be from a place that is part cowboy western novella, part “oil field trash,” and 100 percent grit and adventure. Highly educated people from around the world come to stake their own claim to the American Dream in the Basin and many choose to stay rather than leave once they see the richness not only economically but culturally.

The oil and gas fields will always be a young-person’s forte, and with the incessant development of technology, and innovative ideas built on that technology, there will always be a place for a young man or woman willing to work their way up the economic ladder. Undoubtedly, that place is the Permian Basin.

*Any errors or omissions are solely the author’s and he welcomes clarification and comments.

 

Christian Lombardini, who works in the oilfield, is also an author, father, and entrepreneur. He’s founder and host of the Oil Field Leader Podcast. Christian shares insights and content on LinkedIn.

 

Sources:  U.S. Census Bureau, Permian Basin Regional Planning Commission, Permian Strategic Partnership, Education Partnership of The Permian Basin, ACCESS for SUCCESS, Texas Workforce Commission, Neilsberg Research, Federal Reserve Bank of Dallas, CensusReporter.org, U.S. Energy Information Administration