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The same thing that happens to every town when the price of oil drops, it slows down. Then the price of oil will go back up and it will be busy again. It's how the the industry works. At this point oil would have to drop to $60/barrel in order for drilling in the Bakken to not be profitable. This means global demand would have to drop significantly. It could happen, but do you think we will see $2.50/gallon gas prices anytime in the near future? Personally, I don't see it happening soon. It could happen, but it would take some serious economic global slowdowns in order for it to reach that point. Not impossible, but unlikely right now. (Can't really speak for the future.)
Oil and natural gas have always been cyclical industries, this is why the city of Williston and the state of North Dakota have been hesitant to pick up and do many projects. No doubt they are building and doing as much as they can, but when I moved up here a few years ago they were really hesitant to move on a lot of things. While that attitude has changed as they have realized this boom isn't quite like the one in the 80's, they still don't just approve everything that comes their way and you can't blame them.
If they have the time to build up Williston and bring in jobs, education, etc. they will survive after oil companies move on, although the money will be scaled back. I personally think the only surviving chance that town has is to bring in a University, and have that drive the small market it will have once everything else is gone.
If they have the time to build up Williston and bring in jobs, education, etc. they will survive after oil companies move on, although the money will be scaled back. I personally think the only surviving chance that town has is to bring in a University, and have that drive the small market it will have once everything else is gone.
That's a great idea and you are right, it would help greatly. Remember though, Williston has had boom and bust cycles several times. This is not their first rodeo so the long time residents are pretty guarded in what they do. It is outside organization and companies that have bought up motels, and apartments and have even built new apartments. Outside investers, or the oil companies themselves. So a bust is not going to hurt the long time residents, as long as they didn't get out of hand during the boom cycle. I really don't think they have.
Williston has built a lot of infrastructure for it's people. North Dakota has taken the gas and oil tax money and plowed it right back into local economys. At this point, I think they will fair very well, even if it did go bust.
I live in Wyoming and have watched it boom and bust. 40 years ago, when it would bust, it was devastating. Today, when it busts, it only means a few extra houses available. It no longer devastates the community. We learned from experience to let the big oil companies come in and spend their money and we just stand pat until they leave. I think Williston is very much in the same position.
Houston also serves as HQ to almost every single Oil and Gas company.
Houston reinvented itself, by making itself the ideal downstream location for the resulting petrochemical industry by remaking itself into a petrochemical port via the Houston Ship Canal. Most nat gas and oil pipelines lead to or from Houston.
There will be five to ten iterations of the Bakken, before the oil is exhausted. (this is the third) Only now is Williston building up the people and financial infrastructure where a small Williston firm can rise to the big time, as has happened over and over in Tulsa and Calgary.
Houston reinvented itself, by making itself the ideal downstream location for the resulting petrochemical industry by remaking itself into a petrochemical port via the Houston Ship Canal. Most nat gas and oil pipelines lead to or from Houston.
There will be five to ten iterations of the Bakken, before the oil is exhausted. (this is the third) Only now is Williston building up the people and financial infrastructure where a small Williston firm can rise to the big time, as has happened over and over in Tulsa and Calgary.
Tell that to companies like Apache...there will be players after the super majors move along...it's all part of the cycle.
The oil isn't going to be drying up soon. There is still a couple decades left of drilling, and once the 50,000 + planned wells have been drilled out (in a couple decades) there will be another couple decades of servicing the producing wells. You and myself will probably be dead before the oil dries up, so guess it isn't much of an issue for you or myself to worry about. Williston is and has been the oil service town for the Williston Basin since the 50's. After the last 2 booms and busts, oil service companies continued to operate "scaled back" oil companies in Williston. This boom will eventually slow down, but all indications are pointing that won't be for decades. Even during the bust cycles, Williston still survived.
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