Saturday, August 27, 2011

North Dakota Boom

We crossed the state line into North Dakota, reset our clocks to central time and noticed a complete change in the landscape.  Eastern Montana had a good bit of reservation land on our route and there was little evidence of prosperity.  Williston, ND on the other hand was booming.  Highway 2 was clogged with hundreds of big rigs, cement trucks, "belly dumps." and tankers.  Buildings were under construction and 5th wheels were parked all over for housing.  Portable buildings were lined up in long rows, used as worker dorms.  The signs on the vehicles provided the clue that the activity was related to gas and oil and Google answered the question.

The Bakken shale rock formation stretches from ND, through eastern Montana and Saskatchewan.   Production is already at 1/4 of a million barrels a day and the estimate is that by 2020, they will be taking 1 million barrels a day.  That is about 10% of current U.S. oil production and 5% of current consumption.  Employment in the sector has increased 6x and will be 20x by 2020.

Fracking is controversial, with the material disposal and potential ground water pollution being significant concerns, but clearly SD is full steam ahead.  The boom continued to be in evidence as we traveled to Minot, ND, but now the spring storms and flooding added further complication.  There were 11,000 people who lost their homes.  This housing problem was aggravated by the employment boom and the local Walmart looked like a hobo camp.  RV's were all over and many were in substantial disrepair.  Some were unhooked from their tow vehicle and had generators chained to them.  Obviously these were not transient RV'ers stopping for the night.

The next contrast was entry into Minnesota.  The rowdy west was left in favor of those tidy Swedes and Norwegians.  The rest stop was well appointed and order was seen in the traffic and public facilities.  Landscaping was groomed and the grass was much enjoyed by the canines in the party.  Boogs even went for a run.

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