In a press release from the City of Carlsbad, we received some affirmation of confidence in many oil industry leaders. XTO, Chevron, and Marathon Oil have all made generous donation directly into our communities. These are good signs that these companies are committed to their long-term investment in our area and to our residents.
“We believe Chevron is well-positioned to weather this downturn, but the severe drop in the commodity price outlook requires us to take action to defer investments that would have driven near-term production growth,” said Jeff Gustavson, Vice President of Chevron’s Mid-Continent Business Unit. “This includes temporarily scaling back current drilling and completion activities in the Permian. We are still fully committed to the Basin and its surrounding communities, and fully expect to increase activity levels in the area once prices recover.”
Marathon Oil gave us a similar message, noting that they have made the decision to reduce activity levels across the multi-basin portfolio, including southeast New Mexico. Marathon believes its decisions, as well as its financial strength, positions it for recovery.
Marathon also recently made a generous donation to Carlsbad through the Roadrunner Food Bank.
“We understand the Carlsbad community, which many of our local employees and contractors call home, is facing unprecedented challenges along with the rest of the country,” the company tells us. “These funds will launch a new Childhood Hunger Initiative program in the Carlsbad Municipal School District – the first of its kind in Eddy County, providing approximately 150 families with 50 pounds of food each month. While it is being set up to meet the immediate needs of Carlsbad students and their families, this program will be an on-going program within the school district, lasting long beyond COVID-19 response.”
Creating a program to last long beyond COVID-19 is a great example of a long-term commitment.