The City of Odessa, Texas, Mayor Javier Joven is feeling good these days despite all the economic and energy issues happening across globe. The reason Joven is feeling optimistic is he knows the Permian can become a solution to the global energy problem.
The mayor attended at special ceremony for DistributionNOW, who had a Grand Opening and Ribbon Cutting Celebration at their new facility in Odessa, Texas. The event was well attended with local community members, professional colleagues and special guest dignitaries like Mayor Hoven and also the neighboring city Midland (TX) Mayor Patrick Payton.
“You see the creativity of how you have to survive,” Mayor Joven said. “This regional DistributionNOW warehouse will be the nerve center for the entire Permian basin into New Mexico to resupply the satellite service companies from valves to fittings and other equipment from the oilfield.”
DistributionNOW operates primarily under the DistributionNOW and DNOW brands. Through its network of approximately 195 locations and 2,600 employees worldwide, NOW Inc. offers a comprehensive line of products and solutions for the upstream, midstream and downstream energy and industrial sectors. Its locations provide products and solutions to exploration and production companies, energy transportation companies, refineries, chemical companies, utilities, manufacturers and engineering and construction companies.
Mayor Hoven was very excited about the commitment from DNOW, as well as their innovative remodeling capabilities.
“Basically DNOW has retooled the Halliburton facilities back into a regional distribution center,” Joven said. “You know the old industry is retooling itself since we’ve had the downtown and the nature of issues like inflation.”
Not only are investments coming to the Permian Basin domestically, but according to Mayor Joven, there are international interests and investments as well.
“We’ve been contacted by a couple groups based in Mexico who represent a dozen companies each, so 24 or more companies are looking at Odessa right now for international expansion,” Mayor Joven said. “So we do have professional businesses who want to come in and build multi-family apartments downtown. We also have another group interested too. We will be having more announcements coming over the next two weeks.”
Mayor Joven expanded his international context a bit by layering in the current administration’s recent actions and desires towards American Independence and Domestic Energy.
“If we could get this administration to stop battling with what we are dealing with. The thing is we have a 4M-a-barrel-a-day gap for the reasons that are happening in the Ukraine and Russia,” Joven said. “Now we are going down to Venezuela, this administration is now trying to deal with Iran, OPEC won’t deal with them. It’s just insanity.”
Host Jason Spiess brings up an interview with Dickinson (ND) Mayor Dennis Johnson back in 2014 when their city was growing at a rate beyond double their highest growth year in history.
“I will never forget Dickinson Mayor Dennis Johnson coming on The Crude Life and just shattering everyone’s $100 oil dreams by stating not one more shovel will enter the ground until a new water treatment plant is constructed,” Spiess recalled. “Mayor Johnson hammered home the maximum usage of basic city services like water, sewer and roads.”
Mayor Joven understood those challenges more than most can appreciate living in the literal desert.
“Right now we’ve already put in financing for two major water and sewer projects running north and south on the east side of Odessa” Mayor Joven said. “One we were able to bring in $15M under budget. So there’s money in place and infrastructure investments without putting increasing the burden on the tax payers.”
Mayor Joven continued with other investments and innovations happening in the epicenter of the Permian Basin.
“We’ve even found environmentally friendly ways to clean the water (in the Permian),” Mayor Joven said. “Right now, we are even finding new ways to recycle water into drinking water. This is the creativity we have out here in West Texas.”
Plus there are more diverse investments into communications and industry coming too.
“We are now in the discussion phase of finalizing over a $100M capital investment into the city of Odessa where we will run fiber throughout the entire city limit,” Mayor Joven said. “The thing is that is will not cost us, they are actually paying us one-dollar a connection on a monthly basis, so the potential there are in the thousands monthly and billions over the life of it.”
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