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Risks and rewards revealed for all involved in oil boom

By Ken Hartman, Herald Editor
Published/Last Modified on Saturday, December 15, 2007 4:48 PM CST



þPre-framed wall sections go into place as the new apartment buildings start to shape up in the Pheasant Run area in the northwest corner of town. When completed, 72 apartment units will be available to help alleviate Williston's current housing shortage. Earle Dodd | Williston herald
There is little question that the latest oil boom will have a tremendous effect on Williston and the entire state of North Dakota.

However, there is also little doubt that the same boom will cause problems for those same locales, especially in the areas of housing, roads and water.

"Mayor Ward Koeser has done a beautiful job of putting together a task force and taking a lead on developing housing here in Williston," North Dakota Governor John Hoeven said at Wednesday's Building the Basin Summit at the Airport International Inn. "It is particularly challenging because the energy industry has gone through boom busts and people remember that. That makes it a little tougher for private industry to come in and build that infrastructure as fast as we have a need."

Mike Anderson of the North Dakota State Housing Finance Agency said the housing situation is "really a struggle to figure out."

"We've got to find a balance in there some way," Anderson said. "We see this as an opportunity for communities to take a look at their housing situations and to tie it in with what they're going to do not only for expansion but also to look at their existing housing. I think it's very important to take a look at the whole picture." Anderson admits communities are facing tough challenges on housing because "they don't know where to start and they don't know where to stop with what they're doing."

Officials have said that an influx of oil workers has caused a housing shortage in the region as workers are living in motels and face a waiting list for apartments in Williston.

Fargo developer Mike Marcil is investing $12 million to build 72 rental units in Williston. He said the furnished apartments, with a garage and paid utilities, should bring $1,200 a month.

Another issue, especially in regional areas, is dwindling water supplies.

Parshall Mayor Richard Bolkan said during the conference that his community has already extended its water intake pipe farther into Lake Sakakawea to avoid running dry.

"We're running out of water," Bolkan said. "We need help with getting quality water."

Dunn County Commissioner Robert Kleeman said 16 oil rigs are active in his county, and its network of roads is being severely damaged by the heavy truck traffic. He said his repair budget would need to be doubled just to keep up.

Gov. Hoeven agreed about the impact on the roads.

"I really think the challenge we have here is timing and location," he said. "From drilling to receiving royalty checks is about an eight month stretch. But during that eight months, think of the impact on your roads while they're drilling that well and getting it into production."

The Governor went on to say that for the fiscal year that ended on June 30, the state provided $36 million to the oil and gas producing counties. For the upcoming fiscal year (July 1 to June 30, 2008), over $40 million will be going to those same counties.

"We need to do better for western North Dakota," Tioga Mayor Jay Skarpohl said.

North Dakota Department of Commerce Commissioner Shane Goettle said all the growth is increasing demands on the state's workforce. He said the industry will need nearly 12,000 new employees by 2010, including 3,300 new workers in 2007 alone to keep up with growth, attrition and retirements.

"There are incredible career opportunities for people in North Dakota's oil and gas industry," North Dakota Petroleum Council President Ron Ness said.

A study done by the North Dakota Department of Commerce, Job Service North Dakota, Career and Technical Education, Williston State College and the Petroleum Council indicated industry positions require workers who possess basic industry knowledge of mechanical, pneumatic and hydraulic systems, basic electricity concepts and general computer operations. Professionals such as engineers, geologists and landmen are also in high demand. Wages for these positions range from $15 to $26 an hour for drilling rig hands and laborers, $16 to $22 an hour for truck drivers, and more than $31 an hour for equipment operators.

Goettle added that workforce attraction, retention and expansion are major priorities for the state commerce department.
 

Comments

    Hockeymom wrote on Dec 16, 2007 2:12 AM:

    " After all the water is gone it is not going to matter how much oil there is or how many jobs there are out there. Mayor Bolken should have thought about the intake before they started selling water to the oil companies. "

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