Economics

Welcome to the ‘Man Camps’ of West Texas

Thousands of oil workers are living in dormitory-like compounds in the Permian Basin.

The Aries Residence Suites in Goldsmith, Texas, is one of many “man camps” that have sprouted in the Permian Basin, which is drawing fresh investment as oil prices have climbed higher.

Photographer: Callaghan O'Hare/Bloomberg

There’s not much to look at except dirt, mesquite, and sagebrush around the 10 acres of flat, almost treeless land near Goldsmith, Texas, where Aries Residence Suites runs a housing complex used by itinerant oil workers. Three years ago, all 188 rooms were as empty as the landscape—a testament to crude’s tumble from more than $100 a barrel to $30. Today, prices are up around $70 and almost every Aries bed is occupied, just as at many other “man camps” throughout West Texas.

The Permian Basin, a more than 75,000-square-mile expanse of sedimentary rock that’s one of the world’s biggest oil plays, is drawing billions of dollars in new investment. Companies are scrambling to find people to do everything from operating drilling rigs to driving trucks. Wages have reached such lofty levels that even unskilled laborers can earn $100,000 a year. Many of the jobs are in remote areas with no houses, schools, or supermarkets, so free room and board are essential perks for workers, most of whom elect to leave their families at home.