Western Railroad Discussion > Oil Boom Offers New Housing Opprotunities

Here’s your chance to live near work.

In an example of North Dakota’s booming oil economy, a brand-new housing subdivision — with some homes built and more home sites available — sprouts up kitty-corner from an oil tank-car loading facility with a loop track in Epping, northeast of Williston.

Meantime, Epping’s historic core, upper left, stands as a reminder to the area’s agricultural roots.

---

Going to be a rash of CHEAP properties when the oil boom is over.

Posted from iPhone

Looks like that neighborhood has already experienced a bust. No building activity going on.
Tom

Houses are awfully close together all things considered.

The housing bust in North Dakota is already happening, because the oil drilling has basically stopped. Existing wells are still producing, but that doesn't generate nearly the employment that drilling does.
 



Edited 1 time(s). Last edit at 10/08/15 14:58 by toledopatch.

The price of oil has caused a local charity here in California that hands out millions to cut their giving in half as their royalties have been cut in half from the oil fields that pay for all the grants they hand out.  Can't spend what you don't have coming in and the economy will see the ripple effect. I like low gas prices, but for every action, you have a reaction.

DRGW5502 Wrote:
-------------------------------------------------------
> Houses are awfully close together all things
> considered.

Ever been in North Dakota in January?   A windbreak, even one made by houses,
is a wonderful thing when the temperature is -40 with a 35mph NW wind.​

Yup, seen "boom & bust" in the oil patch in northern BC, Canada. One guy I knew that had the cash bought 10 brand new never lived in houses in a small subdivision for 30K a piece. Was able to rent some out for the duration until the next "boom" ten years later and sold each one for 300K or more. A real gamble but dollar wise it paid off.  Doug

Was a piece of news this week about the underworld at work there in the commuity providing jobs for hookers, drug dealers and a few other jobs. No oil jobs mentioned along with builders needing any help.

Looks like a half-built man-camp to me. Probably a few of those around.....

lowwater Wrote:
-------------------------------------------------------
> Looks like a half-built man-camp to me. Probably a
> few of those around.....

Does look like a man-camp.

Back in the boom days, they were paying $120,000 a year for truck drivers, including a "home every night" guarantee. That's pretty good money.  Burger King was paying an $18 starting salary, too.

Toledopatch said; "The housing bust in North Dakota is already happening, because the oil drilling has basically stopped. Existing wells are still producing, but that doesn't generate nearly the employment that drilling does."

The oil drilling has not stopped in North Dakota. According to the Baker-Hughs rig count, the industry standard, there are 65 rigs drilling in North Dakota. Virtually all of these are drilling horizontal wells.

Dick
Roosevelt, Utah
 



Edited 1 time(s). Last edit at 10/08/15 20:15 by 2ebright.

2ebright Wrote:
-------------------------------------------------------
> The oil drilling has not stopped in North Dakota.
> According to the Baker-Hughs rig count, the
> industry standard, there are 65 rigs drilling in
> North Dakota.

Which is also a far cry from the 180+ active rigs a year ago.

North Dakota's official rig count, monthly production, etc.  The industry position is that many shut-in wells were marginal producers. Taking them off line doesn't affect the overall output by much, but pushing a productive well will more than make up the difference.

There's some evidence that the Samson bankruptcy, and the shoppng of leases by several other over-extended drillers will result in more compact properties as nearby leases are combined under one owner.  Right now, there are many properties where 3-4-5 companies are drilling in relatively  close proximity. The story is that oil is cheaper on Wall Street (buy the whole company, leases and all, in bankruptcy) than in North Dakota. Many late to the game lease holders are looking for hard cash right now, and have leases or shut in production for sale.


Historical Bakken, back to 1972



Edited 1 time(s). Last edit at 10/09/15 18:42 by Lackawanna484.

Josiah Wrote:
-------------------------------------------------------
> The price of oil has caused a local charity here
> in California that hands out millions to cut their
> giving in half as their royalties have been cut in
> half from the oil fields that pay for all the
> grants they hand out.  Can't spend what you don't
> have coming in and the economy will see the ripple
> effect. I like low gas prices, but for every
> action, you have a reaction.

Apparantly, the price of oil as nothing to do with the price of gas at the pump. Here in Southern California, the average currently is 2.75 for regular, yet oil is sub 50 per barrel.

Taxes are the biggest difference maker in gas prices from one state to the next. Seasonal blend requirements is the next factor.

When gas is in the $2.00 to $2.10 range in the Atlanta, GA area, as it is now, the prices in neighboring South Carolina and Tennessee
are $1.75 to $1.85.

Still amazes me how fast oil companies are to raise prices (within minutes) when oil goes up, but how slow they are to lower prices (weeks or months) when oil prices decline.

Jay

jst3751 Wrote:
-------------------------------------------------------
> Josiah Wrote:
> --------------------------------------------------
> -----
> > The price of oil has caused a local charity
> here
> > in California that hands out millions to cut
> their
> > giving in half as their royalties have been cut
> in
> > half from the oil fields that pay for all the
> > grants they hand out.  Can't spend what you
> don't
> > have coming in and the economy will see the
> ripple
> > effect. I like low gas prices, but for every
> > action, you have a reaction.
>
> Apparantly, the price of oil as nothing to do with
> the price of gas at the pump. Here in Southern
> California, the average currently is 2.75 for
> regular, yet oil is sub 50 per barrel.

Posted from Android



Edited 1 time(s). Last edit at 10/09/15 13:52 by garr.

There are two seasons in North Dakota: Winter and the fourth-of-July.  Your in a "traffic jam" in North Dakota on the interstate if you can see a vehicle in front of you and one in your rear view mirror.