Wondering about Williston.... (Fargo, Minot, Stanley: extended stay, to rent, hotel)

[Roloff1976]

yeah, and it's been down to $12 and up to $147 over the years. It has a history of extremes...I don't think too many in the oil industry are worring too much about the current price...they know it will stabilize or go back up a bit....but the traders and speculators are squirming I bet...LOL!

[chris_ut]

Originally Posted by Roloff1976

yeah, and it's been down to $12 and up to $147 over the years. It has a history of extremes...I don't think too many in the oil industry are worring too much about the current price...they know it will stabilize or go back up a bit....but the traders and speculators are squirming I bet...LOL!

On the contrary they have already started to cut back drilling plans and lay off oil field workers starting the last 2 weeks.

[Roloff1976]

Yeah, it is possible that is happening down in Texas, but up here, so far they are doing okay. They are still advertising for oil field workers in the local papers...and are doing a big job fair out in Michigan to recruit oil workers to ND. I just read in the Williston Herald where Halliburton is doing another $2million dollar addition to their campus in Williston. I've not heard any locals talk about lay offs yet, but that could change over time. I know they said most of their work was budgeted prior to the oil prices, but once the money for the current projects are complete, who knows...maybe by then prices will rise again...it all depends on the cost of drilling vs. the price of oil...so far it has remained above what they need to drill. Unless you know something down in Texas that we don't know up here, I guess we are not going to go into the paraniod panic mode.

[chris_ut]

Shale plays are profitable at different levels depending on the cost of extraction. When natural gas fell under $7 a number of plays shut down. When it falls under $6.50 more plays will shut down. I am not sure what the magic number is for the Bakken. The thing about the oil industry is that it doesn't work like say auto companies where they lose money for years and slowly shed jobs. One day everything will be humming along like normal then a phone call will come in and the next day the whole project will be shut down and everyone will be transferred or laid off. Not trying to start a panic, that is just how it is so be aware. We had 10% of our guys cut here last week. Over in Louisiana they laid off 1000 people in one day from the Haynesville play. These are landmen mind you, we are the first to go. The roughnecks and such will be the last to go since they have to finish drilling whats already been unitized.

[Roloff1976]

There was an article in the Bismarck Tribune, Williston Herald, and Minot Daily a couple days ago...basically the same articles. They talked about if the boom was going bust...they said most of the drillers and producers are going ahead with their Bakken plans despite the drop in oil. They said if oil continues to drop, some of the planned drilling on the fringes of the Bakken could be in jeopardy until the prices come back up. But, the majority of the drilling is taking place in Mountrail, Dunn, and McKenzie counties, and even though oil has dropped to $70., the cost of drilling for profit on these wells can go as low as $20-45. The reasoning is many of these wells are pulling in over 1,000 barrels a day. I'm not sure how and why they make decisions...I would think they would want to hold off for ANYTHING until the prices go back up...but they say they are commited to the Bakken in ND even with the downturn in oil prices. I'm guessing since it is considered the largest find in the lower 48 in many many years...probably don't want to take the chance of backing off and losing the leases and then having to fight for the rights to compete for leases they had/have...when the prices go back up. Just guessing.

[GraniteStater]

It may be safe to say that "big" oil boom that we had a few months ago is now over as fears of a global recession are spreading. Oil is now at $67 a barrel and rapidly falling. Natgas prices have stabalized some, but have still rapidly fallen. Heating oil prices (derived from crude) have also rapidly fallen.

[Roloff1976]

Yes, and despite the falling prices, the oil industry has said it is still going to continue with their current plans in the Bakken formation in ND. (especially Mountrail, McKenzie, and Dunn counties). It was just announced in the past couple days (despite the fallingk prices) that more major construction projects in Williston will continue on...more apartments, 2 new hotels...all to service the oil boom STILL occuring in western North Dakota. I do think this will put a damper on towns that were hoping to benefit greatly from this (Minot)...but once again, since Williston is basically the center of the energy industry as far as oil services, offices, shops, etc... the boom continues in that town.

[CA central coast]

Are there plenty of residential and commercial construction jobs available? carpenters, plumbers, electricians,etc..

[GraniteStater]

Originally Posted by Roloff1976

Yes, and despite the falling prices, the oil industry has said it is still going to continue with their current plans in the Bakken formation in ND. (especially Mountrail, McKenzie, and Dunn counties). It was just announced in the past couple days (despite the fallingk prices) that more major construction projects in Williston will continue on...more apartments, 2 new hotels...all to service the oil boom STILL occuring in western North Dakota. I do think this will put a damper on towns that were hoping to benefit greatly from this (Minot)...but once again, since Williston is basically the center of the energy industry as far as oil services, offices, shops, etc... the boom continues in that town.

That sure is good news I am glad ND is continuing to do fairly well in this economy.

[Kraig]

Originally Posted by MikeyToo

Just in case you may not have thought of the idea:

Understand the need for affordable housing. Are there lots available in/near Williston? If so, how about a Modular home like:
Centennial Homes -- The Largest Manufactured Home Dealer in the Midwest
They have a plant in Bismarck(based out of Aberdeen,SD), I believe. You would probably need someone to do the masonary work, the landscaping could be done over time. Not trying to sell you on them, there are others around. Also, not sure if there are any pre-cut home company's still around. My first home was a Capp home out
of Minneapolis. They framed it in, I hired someone to do the masonary work, I did the rest. It was the only way I could afford a home at the time, right after getting married. Doing a pre-cut home the rule of thumb was you saved about 1/3 the cost over outright buying one. You got a construction loan and one year to finish it. After that you have to obtain financing on your own.
Not for everyone, I realize as it takes a lot of work and I didn't have little ones yet.
Good luck in finding a home near Williston.

*******

I have heard bad things about Capp homes, cheap quality, poorly made? I am looking for an affordable home in the Fargo area, any thoughts on Capp? Thanks.