Sunday, November 16, 2014

Midland, Saudi America

Midland, Saudi America   

The Gist


The Midland/Odessa area of west Texas is booming. The oil boom that the United States is experiencing is brought to you courtesy of something called fracking. Fracking (hydraulic fracturing) is the use of high-pressure water and chemicals underground to break up shale rock and release the oil and gas trapped inside. The process is expensive and raises the ire of environmental groups. Although the price of oil continues to fall, the oil boom that has made Midland the “Dubai of Texas” is not likely to end any time soon. Midland has the lowest unemployment rate in the country and the population is growing at 4.6% per year (the overall Texas rate is 1.6%). Plans are being made to build the tallest building between Los Angeles and Houston. All this growth is creating an inflated housing market more like DC than a city of 150,000 and stretching the city’s infrastructure to the brink. However, city officials know that the boom might quickly become a bust when oil prices come down. Longtime residents remember ‘Black Friday’ (October 14, 1983) when the largest bank in the region collapsed after oil priced bottomed out, starting a domino effect that transformed a once booming Midland into a ghost town…and now you know the gist.  

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