• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

Bakken Oil Boom A Big Bust

Mike

Well-known member
WASHINGTON —

While the massive Bakken oil boom drew hordes of job seekers and international attention to the remote prairies of North Dakota and Montana in recent years, it’s turned into a money loser for most cities and counties in the region.

Crime in Dunn County, N.D., in the heart of the nation’s oil boom, skyrocketed 60 percent in just three years, and the road maintenance budget soared from $1.5 million to $25 million.


The local government couldn’t keep up, with demand for services outpacing the growth in tax revenue by as much as 40 percent. The problem continues as the drop in oil prices in the past year means increasingly less money for the county to spend on projects – while drilling, the truck traffic that eats up the roads, and demand for community services haven’t stopped.

“The gap between revenues and needs is still fairly large,” Daryl Dukart, a Dunn County commissioner, said in an interview. “It will take many years to balance out.”

Dunn County is far from alone. Analysis from researchers at Duke University found that “most local governments in North Dakota and Montana’s Bakken region have experienced net negative fiscal effects” from the shale drilling boom.

“Because of the very rural nature of North Dakota and Eastern Montana, and the very large scale of the activity that’s been taking place, population growth has essentially outstripped local government’s ability to provide services,” said Daniel Raimi, research associate for Duke University’s Energy Initiative.

It is a different story elsewhere in the nation, where local governments have benefited from the drilling surge. In Texas, which led the drilling boom along with North Dakota, “the net financial effects of recent oil and gas development have ranged from roughly neutral to a large net positive,” according to the Duke University research published this week by the National Bureau of Economic Research.





The oil industry relies on a large fleet of heavy

Read more here: http://www.mcclatchydc.com/news/nation-world/national/economy/article34552824.html#storylink=cpy
 

Steve

Well-known member
every-time a politician says,.. this will be good for growth.. and wants the planning board to approve the project....

no matter what the project was,.. Only one fact has seldom changed,.... they are almost always WRONG.

as for the oil boom/bust... could have been capitalized on by funding new natural gas, and other pipeline projects
to move the energy to where it is needed most .

but we know that if he won't approve the XL pipeline project, that obama's team would never "invest" in any truly worthwhile infrastructure projects that would actually cut our green house gas emissions..
 

mrj

Well-known member
Which 'boom' situations have been different as they developed?

Are we supposed to refuse to develop new source of fuel, or any other resource because it might be difficult to control people who do no want to be law abiding, unless we put enough into law enforcement?

mrj
 

Steve

Well-known member
mrj said:
Which 'boom' situations have been different as they developed?

Are we supposed to refuse to develop new source of fuel, or any other resource because it might be difficult to control people who do no want to be law abiding, unless we put enough into law enforcement?

mrj
I am all for growth,.. growth driven by demand,.. driven by entrepreneurship.. but I just find that when politicians and politics get involved it seldom works out for the better of the folk who lived there to start with...

the Bakken oil is out of the can... it may slow to a stall,.. but as soon as it is needed and it will suddenly recover..

the politicians should never spend based on the best month ever... and continue to spend like that month will go on forever..
 

Steve

Well-known member
latest_numbers_LNS11300000_2005_2015_all_period_M08_data.gif


sometimes a picture is easier then a thousand words.. in this case a graph,...




http://data.bls.gov/timeseries/LNS11300000
 

Steve

Well-known member
There are more job openings available in America today than at any point since the Bureau of Labor Statistics first started tracking vacancy data back in December 2000. Yet the percentage of adult Americans working or actively looking for a job stands at 62.6 percent, the lowest level in nearly four decades.

America's labor force participation storm has been brewing for years and reflects changing demographics as well as the results of policies that may have yielded unintended results.


http://www.usnews.com/news/the-report/articles/2015/07/16/unemployment-is-low-but-more-workers-are-leaving-the-workforce

if you really feel like you want to ruin a day.. just go read that article... it is a very "liberal article" and his solution is to throw more gas on the fire... (let more immigrants in) , instead of focusing on training our own workforce...

with policy like that.. we are doomed...
 

TexasBred

Well-known member
Steve said:
mrj said:
Which 'boom' situations have been different as they developed?

Are we supposed to refuse to develop new source of fuel, or any other resource because it might be difficult to control people who do no want to be law abiding, unless we put enough into law enforcement?

mrj
I am all for growth,.. growth driven by demand,.. driven by entrepreneurship.. but I just find that when politicians and politics get involved it seldom works out for the better of the folk who lived there to start with...

the Bakken oil is out of the can... it may slow to a stall,.. but as soon as it is needed and it will suddenly recover..

the politicians should never spend based on the best month ever... and continue to spend like that month will go on forever..

If and when oil prices come back up drilling will resume and capped or choked wells will begin producing again at capacity. We have one gas field in particular down here producing very little but waiting on for prices to improve. Oil will be done the same way. No need to give it away.
 

Brad S

Well-known member
I heard there may be a trillion in bad debt in the Bakken. It's a ghost town up here - for sale signs all over. But right nothing is forcing market clearing prices yet.

Think about the psychological dynamics the Bakken and eagle ford have exerted on the world oil market. Without these plays, the saudies would be able to push oil where they wanted. Imagine this Economy with that reality?
 
Top