Exhibit I β€” Regional Assessment

Regional SWOT analysis

A synthesis of the regional economic profile, the last two years of economic developments, and the published plans of cities, counties and partner agencies across the 17-county service region. This is a working draft for the CEDS: tell us where you agree, where you do not, and what is missing.

How the list changes: a public suggestion moves into the boxes below once it has at least 3 thumbs up and more than half its votes in favor. Any point that draws 9 or more votes and falls under 50% agreement drops to the archived list at the bottom of the page.

Points on the board

23

Votes cast

0

Overall agreement

β€”

Suggestions received

0

Archived

0

Strengths

Internal assets the region can build on

5 points
  • The most productive oil and gas basin in North America

    Permian production anchors a dense cluster of operators, service firms, midstream companies and manufacturers that few regions of this population can match, generating wages, royalties and severance revenue well above state norms.

    Basis: Baker Hughes county rig counts; regional industry mix in the economic profile

    No votes yet β€” be the first to weigh in

  • High household incomes and a tight labor market

    Median household income of about $77,000 and an unemployment rate near 3.3% put the region ahead of most non-metropolitan areas in Texas, giving employers a proven ability to pay competitive wages.

    Basis: Census SAIPE 2023; BLS LAUS annual averages

    No votes yet β€” be the first to weigh in

  • Population growth concentrated in two urban anchors

    Midland and Ector counties continue to add residents and services, supporting regional retail, medical, air service and higher-education capacity that smaller counties draw on.

    Basis: Census Population Estimates, 2019–2024

    No votes yet β€” be the first to weigh in

  • Interstate, state highway and rail connectivity

    More than 13,300 centerline miles of state-maintained highway and roughly 550 miles of rail line connect the region to Gulf Coast refining, Mexico trade lanes and southwestern markets.

    Basis: TxDOT Roadway Inventory 2025; BTS/FRA North American Rail Network

    No votes yet β€” be the first to weigh in

  • Deep local capital and philanthropic capacity

    Locally headquartered energy firms, foundations and economic development corporations can co-invest in projects at a scale unusual for a region of this size.

    Basis: Recent developments inventory; member plans in the plans library

    No votes yet β€” be the first to weigh in

Weaknesses

Internal conditions that constrain growth

6 points
  • Economic concentration in a single volatile sector

    Employment, tax base and population all move with the drilling cycle. Regional rig activity fell from an average near 297 in 2019 to roughly 139 in the most recent year, and payrolls follow.

    Basis: Baker Hughes rig counts, 2019–present; LAUS employment trend

    No votes yet β€” be the first to weigh in

  • Low postsecondary attainment

    A smaller share of adults holds an associate degree or higher than statewide, which limits the region's competitiveness for diversified employers and slows reemployment after downturns.

    Basis: ACS 5-Year Estimates, educational attainment

    No votes yet β€” be the first to weigh in

  • Housing supply and affordability pressure

    Boom-cycle demand outpaces construction, driving up rents and limiting the ability of teachers, nurses, first responders and service workers to live where they work.

    Basis: ACS housing cost and tenure data; local comprehensive plans

    No votes yet β€” be the first to weigh in

  • Remaining broadband and digital-access gaps

    Household broadband subscription rose to about 86% region-wide, but roughly 11% of households still report no internet access at all, with rural and lower-income counties furthest behind.

    Basis: ACS table B28002, 2019 and 2023

    No votes yet β€” be the first to weigh in

  • Thin staff capacity in small counties and cities

    Several member jurisdictions have little or no dedicated grant, planning or engineering staff, which slows project readiness and limits competitiveness for federal and state funding.

    Basis: Coverage gaps observed across the regional plans library

    No votes yet β€” be the first to weigh in

  • Constrained water supply and aging systems

    Groundwater decline, produced-water handling and aging municipal distribution systems raise the cost of every new residential, commercial and industrial project.

    Basis: Regional and municipal water and comprehensive plans

    No votes yet β€” be the first to weigh in

Opportunities

External conditions the region can capture

6 points
  • Energy-adjacent diversification and advanced manufacturing

    Sand, chemicals, equipment fabrication, pipe and modular manufacturing already serve the basin and can scale into markets outside oilfield demand.

    Basis: Expansion and opening announcements in the developments inventory

    No votes yet β€” be the first to weigh in

  • Solar, wind, storage and grid investment

    Abundant land and solar resource, plus rising basin electricity demand, make the region a natural host for generation, transmission and storage projects with substantial property-tax value.

    Basis: Announced generation and transmission projects; ERCOT interconnection activity

    No votes yet β€” be the first to weigh in

  • Carbon capture, hydrogen and produced-water reuse

    Existing pipeline corridors, geology and technical workforce position the region to capture emerging federal and private investment in low-carbon industry.

    Basis: EDA CEDS economic resilience guidance; announced basin projects

    No votes yet β€” be the first to weigh in

  • Aligned workforce and higher-education pipelines

    Community colleges, universities and school districts can expand stackable credentials in energy, healthcare, skilled trades and logistics to lift attainment and retain young workers.

    Basis: Workforce and institutional plans in the plans library

    No votes yet β€” be the first to weigh in

  • Highway, rail and air corridor upgrades

    Ongoing interstate, relief-route and rail improvements can reduce freight cost and crash exposure while opening new industrial sites.

    Basis: TxDOT roadway inventory growth, 2019–2025; TxDOT project programming

    No votes yet β€” be the first to weigh in

  • Quality of place as a retention strategy

    Downtown redevelopment, childcare capacity, healthcare access and parks are increasingly what determine whether families stay through the next downturn.

    Basis: Municipal comprehensive and downtown plans

    No votes yet β€” be the first to weigh in

Threats

External forces that could set the region back

6 points
  • Commodity price and capital-discipline cycles

    Operator consolidation and capital discipline mean production can hold while rigs, service contracts and local employment fall, breaking the historical link between output and jobs.

    Basis: Rig count decline alongside sustained basin production

    No votes yet β€” be the first to weigh in

  • Automation and consolidation reducing headcount

    Mergers among operators and service companies have already produced office consolidations and layoffs in the region, with decision-making moving out of the basin.

    Basis: Closing and relocation entries in the developments inventory

    No votes yet β€” be the first to weigh in

  • Out-migration of young and skilled workers

    Housing cost, childcare scarcity and limited career breadth push graduates toward larger metros, thinning the pipeline for employers of every type.

    Basis: Age structure and migration components in Census estimates

    No votes yet β€” be the first to weigh in

  • Drought, water scarcity and induced seismicity

    Extended drought and disposal-related seismic activity carry regulatory and operational risk for both municipalities and industry.

    Basis: State water planning; Railroad Commission seismic response areas

    No votes yet β€” be the first to weigh in

  • Policy and funding volatility

    Shifts in federal energy, permitting and grant policy can reverse project economics and stall announced investments before construction.

    Basis: Unrealized announcements tracked in the developments inventory

    No votes yet β€” be the first to weigh in

  • Infrastructure lagging behind demand peaks

    Road wear, school capacity, emergency services and utilities are sized between booms, so each upswing arrives faster than public capacity can be financed and built.

    Basis: Local capital improvement plans; TxDOT maintenance reporting

    No votes yet β€” be the first to weigh in

Add to the analysis

Suggest an addition

Pick the box it belongs in and describe the strength, weakness, opportunity or threat in a sentence or two. Suggestions are public, and once one earns at least 3 thumbs up with majority support it joins the boxes above.

Running list

Suggested additions

Loading suggestions…

Removed by vote

Archived points

Points that drew 9 or more votes and fell below 50% agreement. They stay on the record and return to the boxes above if opinion shifts back.

Nothing has been archived yet.