North Dakota oil boom brings jobs boon

October 12, 2011 under Articles
Oil Barrels

Image by blizzy78 via Flickr

Need a job? Moving to the middle of nowhere may actually be your best bet.

In what is being called the largest oil boom in recent North American history, the oil industry in North Dakotais thriving, creating jobs in all sectors of the workforce in the area surrounding the Bakken formation.

The Bakken formation is a massive oil reserve located mostly within northwestern North Dakota and consists of anywhere from 4 billion to 24 billion barrels of oil. Oil companies recently discovered new techniques to tap into the reserves, and they are in need of laborers to work the rigs.

More than 180 oil companies are operating in the Bakken formation in North Dakota, centered on the cities of Williston andWatford. There are currently 100 drilling rigs in operation in the area, and this number is expected to increase to 150 by the end of the year.

While many areas of the country face high unemployment rates and lasting effects of the recession, North Dakota cannot find enough workers to operate the drilling rigs and accommodate the increased population.

Before the oil boom,Watford City,NDhad a population of 3,000 permanent residents. There are currently 6,500 living in the town, many without homes.

Because of the massive influx of people trying to capitalize on the black gold of the Bakken formation, housing in the area has become scarce. Many workers live out of their vehicles, in tents or makeshift dorm-style units known as “man camps.”

Prior to flocking to the burgeoning area surrounding the North Dakotaoil boom, it’s recommended to line up housing in advance. Although salaries for oil workers range from $70K to $100K per year, and wages in other sectors of the workforce have nearly doubled in the area, many who have relocated to reap the benefits are living in conditions of poverty due to the lack of housing.

Entry-level jobs in Williston, such as those in grocery stores, restaurants and other service-oriented industries pay a minimum of $12 per hour. Truck drivers in the area can make around $70K to $80K per year. On average, workers in North Dakotacan make at least $1,000 more a month than in other parts of the country.

Thousands of Americans have uprooted and relocated to the area surrounding the Bakken formation in hopes of getting back on their feet and paying off debt. Williston’s population grew from 12,000 to 15,000 with the oil boom, and new people arrive every day.

Although the promise of earning a decent living and securing gainful employment is strong, many do not factor in the extreme weather of North Dakota, which ranges from harsh icy winters to blistering hot summers. This especially poses a challenge when so many people are without places to live.

To compensate for the population growth, new businesses have popped up in the area, and they are thriving. Housing projects are in the works to provide the new residents with a much-needed alternative to crashing in their cars or living out of tents.

It’s an ironic situation that one of the most prosperous areas in the nation is in the middle of nowhere of North Dakota, but the jobs are there and business is booming. As history has proven over the years, oil is often found in places where people are not.

 

WORKS CITED:

Ellis, Blake. “Double your salary in the middle of nowhere, North Dakota” CNN Money http://money.cnn.com/2011/09/28/pf/north_dakota_jobs/index.htm  Accessed 10/11/11

“Finding a Job in North Dakota: The Bakken Oil Drilling Boom” http://ghost32.hubpages.com/hub/Finding-A-Job-In-North-Dakota-The-Baken-Oil-Drilling-Boom  Accessed 10/11/11

“North Dakota: Many Jobs, No Housing” Classifieds 100 http://job-library.classifieds1000.com/oil_boom/20100718-19379-North-Dakota-Many-Jobs-No-Housing  Accessed 10/11/11

Obama, High Gas Prices and the JobMarket

May 16, 2011 under Articles
united states currency seal - IMG_7366_web

Image by kevindean via Flickr

If you drive a car, you probably cringe every time you pass a gas station. The current national average is at $4.00 per gallon right now. Granted this is down about $0.10 from a couple weeks ago, but it is a hefty price to pay just to get from point A to point B.

Not only do high gas prices affect our personal financial situations, they also discourage the job market. Since we are stuck paying so much at the pump, we have a lot less to spend on extras. These extras usually include things like eating out and entertainment expenses. This means a big decrease in the amount of service jobs out there.

If the people aren’t out there spending money, then there’s no reason for stores to employ workers to stock shelves, sell movie tickets and wait tables. The customer service industry is a huge part of our economy, and they are definitely feeling the effects of high gas prices. With the price of oil deterring our job market, what are we doing to help solve this problem as a nation?

Well there is some good news on that subject. This past week, President Obama announced his plans to speed up domestic oil and gas drilling on public lands and waters. This would include plans for expanded drilling in Alaska and a review of the potential environmental impact of offshore drilling on the Atlantic coast.

Obama’s decision to move ahead with these plans came as a reaction to negative feedback from Republicans and business leaders concerning the current state of our domestic oil production. They complained that Obama’s anti-drilling policies were only helping to raise the gas prices and prevent new job creation.

As of right now, the policy for drilling off the Atlantic coast has it kept off limits until at least 2018. But can we really wait that long? If there are indeed massive reserves of oil below the Atlantic seabed, can we afford to preserve them and pay continually higher gas prices? Because that looks to be our future if we keep counting on other countries to provide the US with oil.

Exploring new options for domestic oil production has two huge benefits when it comes to the job market. The first and probably most obvious advantage is that the new drilling operations will instantly create jobs. If we are to set up offshore oil rigs and operations in Alaska, we will surely need thousands of workers to operate them.

The second positive effect that future domestic oil production will have on the US job market is that it will help drive down gas prices and keep them that way. This will help keep all those customer service workers employed, because Americans will in turn have more money to spend on the extras. If we don’t have to pay $5.00 per gallon, then maybe we will be able to afford dinner and a movie.

This all sounds fine and dandy, but even as I am writing I can only think of the BP disaster and see the future reincarnation of that catastrophe on the Atlantic coast. We still have a whole lot of work in cleaning up BP’s mess in the Gulf, and we should do all we can to prevent that from happening again.

So it’s a good thing that Obama is taking steps to review what kind of environmental impacts the Atlantic offshore drilling operations might have before going ahead with it. My only request to the Commander in Chief is that we maybe, just possibly might want to not let BP anywhere near our new domestic drilling operations.