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Oil Booms in North Dakota


star2city

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I heard the rain is slowing progress so they are behind.

Yeah, if they were planning an August open, I doubt they'll make it. Structure done, plywood sheathing almost done, brick veneer started in back, no windows, interior looks to be only at stud stage. Lots of work left.

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  • 2 weeks later...

It completely went over your head.

Every other Bisonville thread talks about how great Fargo is because it has a Sonic or was the first with a Kohl's, so Fargo obviously is the best ND has to offer according to Bville. Bisonville is also looking for a sugardaddy with a spare $200 m so it can buy itself a domed stadium for FBS.

Those statements were parodies on posters like Bison Dan and most of Bisonville.

Fargo is indeed the best part of ND, at least as places to live go. Still haven't been to all the parks so I can't comment on the overall picture, but turtle river has been calling my name.

It's not a Sonic, but downtown Watford City is getting a rather large development for small town ND.

http://www.watfordci...roperties_2.jpg

07-23-14_coltown_properties_2.jpg

pretty slick looking building, good for watford city.
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Only as long as the Bakken keeps producing profitable oil.

Continental Resources, Harold Hamm's company, is showing possible 2024 production from the Bakken at 3M bpd, in their latest quarterly presentation.  Bentek, a consulting firm in the industry, is conservatively predicted 1.7 M bpd.  Continental has been spot on when they predict production, but government sources have always badly under predicted.  

 

The Bakken is like a multi-tiered wedding cake that has oil instead of frosting in the shale zones.  The four zones of the Three Forks shale are just begining production.  Many of them are almost as good as the Middle Bakken.  The Three Forks extends further south and east than the Bakken, so places further south of Dickinson and east of Killdeer could see a lot of drilling.

 

Towner county, the county east of Minot, is seeing a lot of leasing.  Some speculate that Canadian companies want to drill the Birdbear formation, which is rather shallow and is what allows successful oil well drilling near Bottineau.

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.pretty slick looking building, good for watford city.

Six high rise buildings are part of the development.  OneOK just announced another gas plant around Watford City, it biggest yet and its fifth in the county.  Just in McKenzie County, OneOK will have nearly a billion cfh capacity, which is large for anywhere, never mind Watford City.  Those gas plants total capital costs is around $2 billion, so McKenzie County will have a huge tax base and nearly 1000 jobs with OneOK in the off chance no more oil wells are drilled there.

 

The New York developers understood that Watford City will be economically viable for their lifetimes.

 

Right now, those gas plants don't recover ethane, but send it down the pipelines with methane to be burned.  Ethane is a big part of Bakken natural gas, one of the richer streams of ethane around.  That is an incredible waste of resources, burning ethane with methane.  One day, European or Asian chemical companies will want that ethane to be converted in polyethylene, probably near the Missouri River.  When that day comes, Watford City and Williston will add a secondary boom almost as big as the first one.

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Has there been any estimates about how long the oil will be pumping out west? 20 years 50 years 100 years?

The amount of gas actually increases for a time as the oil flow rates goes down.  With the rate at which technology is increasing, at least 2050, and probably beyond.  Even now, only about 8% of the oil comes out of the ground.  With CO2 injection, that number could be as high as 20%.  

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Only as long as the Bakken keeps producing profitable oil.

The multi pad drilling is reducing the cost of operations. It will be profitable. At a minimum 40,000 more wells to be drilled and many more gas plants. For each new well 1 and 1/2 permanent jobs. So another 60,000 workers in the next 20 years just to service the wells. 3 new refineries will be added. One this year and the other in a couple years. The liquid gas is plentiful and top grade. In the future manufacturing will be added. Williston will be come a major retail shopping center as it is 2 hours to Minot. Over 2 billion in retail development is coming to Williston in the next few years. In August direct flights to Houston will be starting. UND will have a nice connection to the oilfields with the new petrol degrees.

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The amount of gas actually increases for a time as the oil flow rates goes down. With the rate at which technology is increasing, at least 2050, and probably beyond. Even now, only about 8% of the oil comes out of the ground. With CO2 injection, that number could be as high as 20%.

That's good to hear.

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Epping Lives ...  and will grow into a small city

 

But Epping is about to change.

The tens of thousands of workers who have flocked to high-paying jobs have driven huge demand for housing in oil patch towns. Now, a half-mile from town, developers are building Epping Ranch, a subdivision that will have 400 cookie-cutter homes, a contrast to the western facades of Main Street.

“There will probably be a few thousand people there — that’s a small city,” said Lee Luscht, a listing agent for the agency handling Epping Ranch. “I think the little post office there is about to get pretty crowded.”

 

http://bismarcktribune.com/bakken/little-epping-braces-for-its-share-of-oil-boom/article_5e036fc8-257e-11e4-b4b9-0019bb2963f4.html

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Looks like Williston could get a 16 story hotel and convention center mostly funded by private sources.

 

 

 http://www.reuters.com/article/2014/08/18/us-williston-conventioncenter-idUSKBN0GI1V220140818

A subsidiary of real estate developer The Prime Group Inc said on Monday it plans to build a $150 million convention center in Williston, North Dakota, aiming to supply a world-class meeting space for the fast-growing oil boom community.

The 16-story complex, which wouldn't open until 2016 at the earliest and still needs funding and approval from city officials, would have more than 600,000 square feet of space, including indoor and outdoor exhibition areas, a Ruth's Chris Steak House, retail shops, office space, underground parking and a 300-room hotel.

 

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