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Former U.S. commerce secretary to lead group to help Permian residents

Thu, 17th Jan 2019 17:48

HOUSTON, Jan 17 (Reuters) - Former U.S. Commerce Secretaryand energy executive Don Evans will chair a partnership of oiland gas firms that have pledged $100 million toward easing thecivic strain of the shale oil and gas boom in West Texas and NewMexico, the group said on Thursday.

The Permian Strategic Partnership is a group of 19 top U.S.energy companies that have organized to address stresses onhealth care, education, housing and the workforce created bycompanies flocking to the Permian Basin, it announced inNovember.

The nation's largest oil field is expected to pump 3.8million barrels of oil per day (bpd) this month, according tothe U.S. Energy Information Administration.

Evans, who started his career working on a rig for Tom BrownInc and eventually became its CEO, served as commerce secretaryduring the administration of former President George W. Bush. Heis a longtime resident of Midland, Texas, where the organizationwill be based.

The boom has employers, including restaurants and localgovernments, under pressure from staff leaving for oilfieldjobs. Midland's unemployment rate was 2.1 percent in October,compared to the nation's 3.7 percent rate.

The last decade's shale boom has led to school overcrowding,soaring traffic fatalities, drug abuse and strains on the powergrid.

Exxon Mobil, ConocoPhillips, OccidentalPetroleum Corp, Pioneer Natural Resources andRoyal Dutch Shell PLC are among the members of thegroup.

The partnership has started holding community meetings inthe region to gather input, but is still recruiting staff. Ithas no timetable or plan yet for how the initial $100 millioncontribution will be spent.(Reporting by Jennifer HillerEditing by Phil Berlowitz)

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