Keeping the "Boom" in Boom - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

The "Boom" in Boomtown: Impact and Staying Power

Posted: Updated:

  Is the "boom" in Boom Town here to stay this time?  Industry experts think so.


Spend a dollar here, create a buck-fifty there -- so says the North Dakota Petroleum Council.  According to their new study, each dollar spent in-State by the oil and gas industry generates $1.59 in additional business activity.  This translates to 30.4 billion dollars in economic impact resulting in 60,000 jobs statewide -- and that's just for 2011.

"I sit in my office in Watford City, North Dakota.  I meet multi, multi-million dollar investors on a weekly basis.  And they're trying to find out how real this is," says Gene Veeder, Director of McKenzie County Economic Development.  North Dakota Petroleum Council President Ron Ness says, "the revenue is there.  We're not just starting this Bakken play.  We're six years into the Bakken in North Dakota.  They can make long term investments."

When it comes to public infrastructure, investment is full steam ahead in the oil region.  "As of right now, either completed since the oil boom or in activity, these few communities have completed $500 million worth of infrastructure work to accommodate the population growth," says Steve Burian, CEO of Advanced Engineering and Environmental Services, Inc.

Though growth is not without challenges, the Petroleum Council says their findings present a unique opportunity for North Dakota.  "Having challenges and issues associated with growth and development are far better than trying to manage challenges associated with a contracting or stagnating economy," says Nancy Hodur, Assistant Research Professor at NDSU, Department of Agribusiness and Applied Economics.  

One of the lingering challenges is housing.  Projections show Watford City population will go from 1,500 to at least 8,000 people over the next several years.  "We have not found a state solution for that.  The solution is the jobs that are out there.  Those people have jobs to fill those apartments and houses.  That creates the economic model that creates the investment and gets those sticks going up," says Veeder.

The overall sentiment among these experts is that with proper management, this boom is going to last.  Says Hodur, "it's here.  It's real and it's going to stay."

The Petroleum Council study says the oil and gas industry generated $2.6 billion in State and local government revenue in 2011 alone.  So they say the money is there to make the necessary investments to ensure North Dakota diversifies it's economy into the future.

 

  • Bismarck/Mandan NewsMore>>

  • Boy Scouts Clean Construction Sites for Community Service

    Boy Scouts Clean Construction Sites for Community Service

    Friday, April 18 2014 8:21 PM EDT2014-04-19 00:21:26 GMT
    Boy Scouts know when they sign up they'll be doing some community service. So, when a couple of crews signed up to collect trash at some local construction sites, it was expected. What they didn't expect,
    Ethan Porter and Scout crews 123 from Bismarck and 54 from Mandan brought about 30 people to clean up garbage near some construction sites.
  • Killdeer Residents Speak About Oil Boom Effects

    Killdeer Residents Speak About Oil Boom Effects

    Friday, April 18 2014 7:08 PM EDT2014-04-18 23:08:27 GMT
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
  • Dyad Environmental Statement on Health Dept. Order

    Dyad Environmental Statement on Health Dept. Order

    Friday, April 18 2014 6:44 PM EDT2014-04-18 22:44:51 GMT
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
Quick Clicks
Closings/Delays
View list
Calendar
What's happening?
Lottery Results
Feeling lucky?
Viewer Photos
Submit yours!
Road Report
Current conditions
TV Listings
See what's on
Gas Prices
Check near you
E-Mail Newsletter
Signup now

Most Popular

Stories
Videos
loading...
Powered by WorldNow
General information or questions:
kxinfo@kxnet.com

News:
Bismarck:
Phone: 701-223-9197
News Fax: 701-223-1985

News:
Minot:
Phone: 701-852-2104
News Fax: 701-838-1050
All content © Copyright 2000 - 2014 WorldNow and KXNET. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.