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WSJ: Oil Booms in North Dakota

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I read a similar story in the Williston paper a couple months ago. I don't know how those landlords live with themselves.

Simple. Market value...supply and demand.

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Like Almostheacen2011 says, I know if these oil companies kept hounding me to pay me 4x what I was currently getting for rent. I would probably say ok.

Like star said part of the reason for the high prices is government. Many of those communities outlawed these mancamps. Were they able to predict the unexpected consequences??? NO.

At $2,00+ month rent. How hard can it be to build a bunch of apartment complex's. The place would essentially be paid for in 2-3 years. Pure profit after that. And they can bulldoze it later and the owners wouldn't care.

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Simple. Market value...supply and demand.

I have no issue if somebody builds a new building, or if somebody moves out of an existing building. In that case, go ahead and rent it for whatever amount the market will bear. I'm not even especially bothered if the able-bodied non-oil patch workers are priced out. But to essentially kick out old people? No. That's just wrong IMO. Some form of rent control perhaps could have been enacted in Williston to prevent all the retiree renters from being priced out of town, but it's too late now.

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I have no issue if somebody builds a new building, or if somebody moves out of an existing building. In that case, go ahead and rent it for whatever amount the market will bear. I'm not even especially bothered if the able-bodied non-oil patch workers are priced out. But to essentially kick out old people? No. That's just wrong IMO. Some form of rent control perhaps could have been enacted in Williston to prevent all the retiree renters from being priced out of town, but it's too late now.

Damn capitalism. Damn, damn.

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Damn capitalism. Damn, damn.

You're right. Screw grannie. She should have had the foresight not to sell her house if she wanted to stay in Williston. :silly:

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You're right. Screw grannie. She should have had the foresight not to sell her house if she wanted to stay in Williston.

You mean apartment? If she bought a house she wouldn't have been in the predicament.

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You mean apartment? If she bought a house she wouldn't have been in the predicament.

I'm thinking a lot of the old people probably moved into apartments once taking care of a house became too much work. Big mistake, as it turned out, once rent became cost-prohibitive.

The next issue will be property taxes in Williston. Higher values=much higher property taxes.

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You mean apartment? If she bought a house she wouldn't have been in the predicament.

A lot of older people don't want a house any more, so they sold and move to a rental when rents were cheap.

North Dakota doesn't allow rent control, as rent control in most cases hands "ownership" to the renter - like in NYC.

It is tragic that people have to move, but there are probably many more older people that are leaving Williston because they made a fortune selling their house. That certainly isn't tragic.

It's going to take years for the housing market to catch up in WIlliston. Just today, one of the smaller oil companies in the area, Kodiak, announced next year it will spend $500 mill on drilling (vs. $200 mill now). That one company is spending more than twice all of the construction in Fargo one year. The amount of capital moving into Williston Bakken (including Watford City, Dickinson, Tioga, Stanley, etc) will be in the tens of billions annually.

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The crappiest $3.6 Million house in the country?

http://www.realtor.c...0996?source=web

I do drywall and painting for a living. I know on some of those message boards, many drywallers have pondered the thought of moving out to the area for work, myself included. But the housing situation is definitely a deterrent to many.

I wanna get my slice of the pie.

I have gotten a few calls from construction companies in the oil fields. "You wanna submit a bid for a Hotel we are building in Tioga?"

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Interesting photo from space, showing the lights (rigs and nat gas burning) in the Bakken. It's lit up like Chicagoland.

http://minnesota.publicradio.org/collections/special/columns/news_cut/archive/2011/11/north_dakotas_boom_from_space.shtml

Hopefully, the gas will be put to real use soon. Five natural gas processing plants are being built or expanded (each hundreds of millions of $) near Williston, Watford City, and Tioga. The additional problem is that raw gas lines have to be built to the processing plants, and more pipeline infrastructure has to be built to move the gas and nat gas liguids out of state. Hess is building an ethane pipeline from Tioga to Alberta, and ONEOK is building a nat gas liquids pipeline from Williston to connect with it's processing plant in Kansas. Basin Electric also announced that they will be building a nat gas burning electric plant near Williston. There's also a diesel refinery that's on track to be built near Willston.

Just to deal with the natural gas, there will be over $2 billion in projects in the Williston area.

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The crappiest $3.6 Million house in the country?

http://www.realtor.c...0996?source=web

I do drywall and painting for a living. I know on some of those message boards, many drywallers have pondered the thought of moving out to the area for work, myself included. But the housing situation is definitely a deterrent to many.

I wanna get my slice of the pie.

I have gotten a few calls from construction companies in the oil fields. "You wanna submit a bid for a Hotel we are building in Tioga?"

That's got to be a misprint by a factor of "10" ?

Is construction strong in Grand Forks, just from the spillover effect?

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That's got to be a misprint by a factor of "10" ?

Is construction strong in Grand Forks, just from the spillover effect?

It seems the largest thing going for Grand Forks is the strong Canadian dollar, there are many new restaurants that have been built/open in GF: Old Leevers getting a Japanese steak and seafood, Ruby Tuesdays, Pizza Ranch, Olive Garden, Five Guys, JL Beers. I am sure I am missing some. Only restaurants I can think to close down were Whiteys and Applebees (EGF). With Whiteys already reopen and Applebees becoming a Drunken Noodle soon (Fargo company).

GF just had its largest ever sales tax collection (month or quarter).

With such low unemployment (some going to the oil fields) you are seeing some wages increase: Radio ad for cooks at the new Ruby Tuesdays start at $14. Riddles Jewelry also opened next door. Remodeled half the Cirrus plant to turn it into the new expanded Amazon. I think they were looking to hire 200 or so when the project was completed in the summer.

All the drywall companies seem to stay busy, which is a rare other places in the country (so I hear). I know some Fargo companies were coming to GF bidding on the new house construction (http://www.jmhomesinc.com/). The hotel next to the Alerus is about to open. There is another one planned across the street for next year. Two 36 plex apartments going up by the Columbia Mall, 9 plex being built by clear channel downtown, another apartment is going up next to the newly constructed one that was just finished where the old civic was.

The bad part is new homes are really only being built in one area of town; area just North of South Middle school, as all the land in South GF is mainly monopolized by the Useldinger Family.

Short answer yes its strong. ;)

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Lets not forget the new Wellness Center, an Altru building going by it.

The Aurora hospital being bought by Indianans and suppose to open soon. Its been finished inside for awhile, but many change orders.

Fellow told me Hugos paid a hefty sum to buy land next to the Wellness.

It's crazy with all the construction but GFs growth still seems to be last (among the big four).

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I could on and on. While doing the Country Inn and Suites few years back, they were talking about building another hotel next door.

The Kings Walk Condos, opened last winter, and if a few more units get sold are suppose to build another.

Whether or not these come to fruition might be a different story.

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heard from a realtorat crary that the expensive king walk condos are a bust.... no one wants to pay that much for condo. even if it is on a golf course

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The next issue will be property taxes in Williston. Higher values=much higher property taxes.

Property taxes need to be abolished. It is not right that anyone should be at risk to losing their house/land because they are unable to pay property taxes. Property taxes are essentially like paying the government for your land. Even if a person has nothing, they should be able to keep their home and property.

http://www.empowerthetaxpayer.blogspot.com/

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heard from a realtorat crary that the expensive king walk condos are a bust.... no one wants to pay that much for condo. even if it is on a golf course

Its like anything you build. The condos next to the Memory Care center (old batting cages).

Menards strip mall. The Strip Mall across from Golden Corral. Been built for years and still not full.

Yes they had high asking prices in the beginning. But it is starting to fill in now.

I was there not long ago painting. The secret is they aren't finished. They have show units, and then finish your unit to your specs as you buy it.

Third floor: golf side: probably the nicest view in GF. Grand Forks only "lake" view. :lol:

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Interesting photo from space, showing the lights (rigs and nat gas burning) in the Bakken. It's lit up like Chicagoland.

http://minnesota.pub...rom_space.shtml

Hopefully, the gas will be put to real use soon. Five natural gas processing plants are being built or expanded (each hundreds of millions of $) near Williston, Watford City, and Tioga. The additional problem is that raw gas lines have to be built to the processing plants, and more pipeline infrastructure has to be built to move the gas and nat gas liguids out of state. Hess is building an ethane pipeline from Tioga to Alberta, and ONEOK is building a nat gas liquids pipeline from Williston to connect with it's processing plant in Kansas. Basin Electric also announced that they will be building a nat gas burning electric plant near Williston. There's also a diesel refinery that's on track to be built near Willston.

Just to deal with the natural gas, there will be over $2 billion in projects in the Williston area.

With the nitrogen shortages that are plaguing U.S. agriculture right now I've always thought it was a shame that natural gas wasn't being converted to anhydrous ammonia and urea. I think there would be some real opportunity there.

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and Minot has another company moving in

http://minotdailynews.com/page/content.detail/id/560392/Pulse-company-buys-Minot-processing-facility-with-plans-to-expand.html?nav=5010

"The facility is expected to create 40 jobs when it opens next summer."

"Our vision for Minot is to make this our North America processing center in the U.S...."

More jobs coming in like crazy. That city is going to explode with residents. I wouldn't be totally surprised if it becomes the second biggest city in the state behind Fargo.

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Property taxes need to be abolished. It is not right that anyone should be at risk to losing their house/land because they are unable to pay property taxes. Property taxes are essentially like paying the government for your land. Even if a person has nothing, they should be able to keep their home and property.

http://www.empowerth...r.blogspot.com/

I completely agree. While taxes are an essential part of a modern society, it never made sense to me to have to "rent" your house from the government.

There ain't one place you can live "free" in America. Closest thing I could think of is living on a frozen lake, but you have to pay the government for an ice shelter tag.

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With the nitrogen shortages that are plaguing U.S. agriculture right now I've always thought it was a shame that natural gas wasn't being converted to anhydrous ammonia and urea. I think there would be some real opportunity there.

The gasification plant at Beulah produces ammonia, not sure about urea though. It would seemingly be an opportunity for some company to step up.

If nothing else, portable gas turbines that can provide local electricity needs or plug into the grid would seem possible. The Bakken region has to import massive amounts of electricity as it is now.

This London newspaper had a more in-depth story:

London Mail: Mystery American 'city' caught on stunning time-lapse video from space revealed to be massive Midwest oil field

http://www.dailymail...ideo-space.html

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The gasification plant at Beulah produces ammonia, not sure about urea though. It would seemingly be an opportunity for some company to step up.

If nothing else, portable gas turbines that can provide local electricity needs or plug into the grid would seem possible. The Bakken region has to import massive amounts of electricity as it is now.

This London newspaper had a more in-depth story:

London Mail: Mystery American 'city' caught on stunning time-lapse video from space revealed to be massive Midwest oil field

http://www.dailymail...ideo-space.html

No urea at Beulah, just anhydrous and ammonium sulfate. The negative about Beulah is that the fertilizers they produce are byproducts, so they don't/won't ramp up production. A dedicated facility just to produce nitrogen fertilizer in the Northern Great Plains would be a great opportunity for somebody, IMO.

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Three days later it seems the Herald did an article on my post:

Confident retailers, eateries flock to Grand Forks

Business owners said they were motivated by the Grand Forks area’s position as the population anchor of the upper Red River Valley and its ability to attract Canadian shoppers.

Growth in the restaurant segment of the retail market has been particularly strong. Eateries that have recently opened or announced plans for new stores include chains such as Ruby Tuesday, the Olive Garden, and Noodles & Co.; and regional groups such as JL Beers, Drunken Noodle, and Fuji’s Japanese Steakhouse and Seafood.

While Grand Forks’ economy is not hurting, it has not had the strong growth that other North Dakota town such as Fargo or Bismarck have posted in the past decade. However, new construction along 42nd Street and 32nd Avenue shows life in the economy, as do sales tax collections running 8 percent higher than the same period last year.

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Today's Herald mentioned that Watford City may grow to 30,000 people. McKenzie County is gaining a huge amount of activity (including building of nat gas processing plants), so that type growth for Watford City may be possible.

But if the EPA halting fracking for 15 months or more, as the Bismarck Tribune is reporting, much of western ND could be abandoned again.

http://bismarcktribu...1cc4c03286.html

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