It'll be a Long Time Before We Know

    

 

 As I conclude my research on the Oil Boom in ND, I’ve realized we may not know for a long time if this new found prosperity is a blessing or a curse for ND.  I have concluded that some people certainly have determined it is a curse. They have lost the community they once had to big oil and big growth. Others are finding themselves with opportunities and happiness they could never have imagined.  As far as environmentally, I believe this is the question that will take longest to answer, what is the long term environmental and health damage being done by fracking for oil?  I’ve learned a little bit about a lot of different issues associated with drilling for oil and all that comes along with it.  It really impacts many more people and areas of a community than one would think. I still want to do more research on oil booms in other areas of the United States and see how they handled the growth and issues that came with it. I haven’t found very much information on this so far.  I am not sure if I will ever decide if this boom is good or bad. I think I’ll remain somewhere in the middle. Like anything else, it’s good for some and not for others and everyone’s got a different opinion on it.

The six different sources I used for my research were pretty comparable in their overall view of what’s going on in North Dakota. Most of what I found talked a lot about the growth and changes that are happening, but provided little in the way of answers to these problems. There were a few exceptions, with one source in particular that was very positive.  These were the sources that affected my way of thinking the most.  I really want to believe this oil boom will be a good, safe thing for North Dakota.

Slowing Down The Growth

     Could the oil companies slow down the drilling activities and give the communities time to adjust to the rapid growth? What is the big hurry? Or why is it all moving so fast?

When you have schools that can’t house all the new students, roads that can’t handle the traffic and big trucks, restaurants that can’t handle all the customers, and stores that can’t keep the shelves stocked, you would think the growth would slow down some naturally.

 People are coming to North Dakota and getting jobs but then they can’t find a place to live, so some are just turning around and leaving. Crime is on the rise as well, in some areas where crime was virtually nonexistent.  Along with crime and rising rent, older, long-time residents are choosing to leave. The face of the community is definitely changing.

The main idea and theme of the article I found from the Bismarck Tribune for this blog post are that all the growth and prosperity that come with this oil boom are having adverse effects on the housing, infrastructure and traffic in the community.

The North Dakota Miracle

From the Institute for Energy Research

June 2012

 

The You Tube video I’ve inserted shows a much more positive spin on the oil boom. People are very proud of what they are doing and happy with the opportunities they have now.  A Geologist even goes so far as to say, from a scientific stand point, fracking is safe and effective. This video changed my outlook on the events taking place in North Dakota. I felt much better about what’s happening there after watching this video.   I want good things for North Dakota and the people there.

Big Changes for ND

In a report from CBS News and an article in the Washington Post the general consensus seems to be that rapid growth from the oil boom in North Dakota is having a huge impact on the communities and economy. Some of these changes are positive and some negative.

Financially it seems this oil boom is going to be a good thing for North Dakota, but will the quality of life suffer for it?

Video found on You Tube posted Nov 28, 2010 by AlJazeeraEnglish

As told in a report from CBS News  North Dakota is known for its beauty of the plains and the brutal nature of its winters.  North Dakota has long been the least populated state in the country, but is changing every day. People, mostly men, pour in from across the nation.

“There are Help Wanted signs at every street corner, but there is no easy way to handle a boom quite like this.

Suddenly, there's prosperity and there's rural renewal, but there's traffic, dust and strain.”

One resident said "Life has changed, (and) not for the better.” For example, when the owner of the land does not own the mineral rights to the oil below they feel like they’ve been invaded. Even with $10k-$15k per well they’d be happier without the money and the wells.

Williston, N.D. is the epicenter of the oil boom. The population there has more than doubled in two years. Another resident says there's a downside to the prosperity. "We're a small town. We just aren't equipped to have 25 to 30,000 people here, and now they are expecting 60 (thousand). We just aren't equipped for that many people to be here."  She just wants things to be back the way it used to be. "Not to be mean, but I'd like these people to leave.” 

These changes aren’t just affecting North Dakota people, “there are those newcomers who run out of options and take refuge in their cars or RVs, public camp sites, or at Wal-Mart for the night.”
“Williston now deals with a 200 percent increase in crime that overwhelms local law enforcement. From 2009 to 2011, DUI arrests in Williston increased 40 percent, criminal complaints 31 percent”. The crime alone is reason enough for me to rethink the whole way they (oil companies) are going about this.  Maybe a slower, smaller approach would be better for the city?
The people of North Dakota say; "We're going to be the richest state per capita shortly. We have an endless amount of money in our treasury. We have full employment and opportunity in a way that other states would beg to have. You know, the question is what do we do with it? And do we survive it? And do we manage it properly?"



In an article in the Washington Post Officials say “the city’s population has doubled in the past decade to some 30,000 residents and the average wage has risen from about $32,000 in 2006 to about $80,000.”  This sounds a little more positive than the last report I read (and wrote about). There definitely are pros and cons to this situation in North Dakota. The question still remains; are the benefits going to outweigh the risks?
“Williston expects an influx of about 1,200 students this year, bringing enrollment to about 3,800 from about 2,600 last year. School officials are hiring 52 new teachers to add to the 190 they already have. They also are adding dozens of mobile classrooms and reopening an elementary school that closed a dozen years ago when the region’s first oil boom went bust and enrollment fell.”  Although this is good news, “about 15 people have turned down teaching jobs due to the lack of housing or because they can’t afford to live in Williston, school superintendent Viola LaFontaine said. Pay for teachers hasn’t kept up, although they are desperately needed.”
“Lanny Gabbert, a high school science teacher and president of the Williston Education Association, said the salary for new teachers went up by $1,500 under the present contract. But that sum has been more than offset by the increased cost of living in Williston. Gabbert said rent for one of his fellow teachers jumped from $500 per month to $900 this year for the same apartment. “I count my blessings,” she said. “Not only have we gotten a lot of applications, we’ve gotten a lot of good applications. There are people who want to teach in Williston.”

Risks of Fracking

Because one of my main concerns is the damage the drilling method of fracking does, I decided to do some research on the process and write about it today. There are still so many unanswered questions about this method, I still have to wonder, how long will the cost of fracking continue to be offset by the price of oil? Are the benefits worth the risks and damage it causes? What are the long-term effects of fracking on the drinking water?

 An oil well near Ross, ND Aug 23, 2011 Karen Bleier Getty Images

According to an article from the Natural Resources Defense Council “nearly all natural gas extraction today involves a technique called hydraulic fracturing, or fracking, in which dangerous chemicals are mixed with large quantities of water and sand and injected into wells at extremely high pressure.”  This process contaminates drinking water and is “suspect in polluted drinking water” in many states, including Colorado.  Hydraulic fracturing is a very controversial process that is enabling oil companies to reach previously inaccessible oil reserves in North Dakota. Because of this, ND ranks 2^nd only behind Texas in oil output.

USA Today reports that there are two things that “hold the potential to make the boom go bust almost immediately.

The first, oil prices. Right now, oil needs to be selling at $60 a barrel or more to make the drilling process profitable in the huge rock formation called the Bakken. No problem there. It's selling at around $100 a barrel with no price collapse in sight.

The second, hydraulic fracturing, or fracking, is a bit more complicated. There is a huge operating cost to drill down two miles and then two more miles laterally. In addition to the trucking, employment and infrastructure costs, the process of fracking is both costly and has become environmentally controversial.  If there were to be a nationwide moratorium on fracking — which has been discussed — the job and oil boom in North Dakota would go away virtually overnight.”

A Trip Back Home

Is North Dakota’s oil boom a blessing or a curse?

On a recent trip back to my home town of Bismarck, ND there was a lot of talk about North Dakota’s oil boom.  Just over 200 miles away in Williston is the biggest oil field ever found, Bakken Field. There seems to be mixed feelings about all this new activity in the state.

People seem generally happy and hopeful about the opportunities, yet worried about all the unknowns. Is the fracking method they use going to ruin the land or cause health problems later? What kind of communities is all this development going to create? Who is going to work all these jobs? Can we keep up with this growth rate?

The thought of new jobs, 30,000 created in the last few years, gets people excited for new opportunities. But without enough people to work these jobs (9 job openings for every 1 resident looking for work) what is the quality of the applicants coming in from all over the country? How are the demographics going to change?

To a lot of people, North Dakota is a beautiful, safe, friendly place to live and raise a family. Will the simplicity be taken away by all the development, growth and increased population? Will this no longer be a “nice” place to live? What are the long term effects of all the drilling and growth?  According to State Representative, Vicky Steiner, some of the communities that were dying are now flourishing. But the onslaught of new residents is straining public resources. Merchants are able to charge an increased rate. Folks in town sometimes get a little upset from supporting the industry while not receiving benefits.

I guess as I begin my research on the events taking place in North Dakota my main question or concern has most to do with the people and quality of life there.  Is the revenue really worth it? Who is really going to benefit in the long run from the drilling in North Dakota?

An arial view from my jet ride above northwest North Dakota