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During his visit, the president will tour an oil rig and address how the U.S. has become a dominant energy power, from reducing regulation, expediting the approval of projects and providing an impetus for private investment in energy infrastructure.
What is the Permian Basin?
The Permian Basin is one of the leading oil-producing fields in the world. The basin spans parts of West Texas and southeastern New Mexico and stretches 250 miles wide and 300 miles long.
It accounts for nearly 40 percent of all oil production in the U.S. and nearly 15 percent of its natural gas production, the Federal Reserve Bank of Dallas reported.
In a report from the Houston investment advisory firm Tudor, Pickering, Holt & Co, it has become a top destination for U.S. fracturing, seeing a rebound in activity since COVID-19 shuttered some operations. In the past decade, new technologies have been transformative for the region, allowing new life into old wells and providing capabilities to tap into new ones.
Many large oil companies have stakes in the Permian. Chevron, for example, is one of the largest producers of oil and gas in the region with approximately 2.2 million net acres.
Trump’s visit this week is not the first time the White House has paid a trip to Midland. In April 2019, Vice President visited the rig site, and as the constraints on energy production face regulation and permission processes, Trump will return in hopes to continue incentivizing production and job growth.
The White House told the Midland Reporter-Telegram in a statement that "the president saw the pain caused in the energy industry by the price collapse and demand shock that energy industry is now contributing to the nation’s economic recovery, and the president will continue to support the industry as it rebuilds."
The president is also scheduled to appear at a fundraiser event in Odessa called the "Permian Basin Special Event."