E M C D e v e l o p m e n t G r o u p, L L C
Tapping Into Today's Energy Markets And Building For Tomorrow's Future
Although the energy states in USA are spread out in several states including California, Texas, Montana etc., the most exciting areas for real estate development today, had to be in western North Dakota. Known commonly as the Bakken Formation which essentially is a shale rock formation occupying about 200,000 square miles (520,000 km2) of an area also known as the Williston Basin and underlying parts of Montana, Saskatchewan and Manitoba.
Oil in this Formation, which covers an area about 400 times the size of Los Angeles, was first discovered in 1951 but because the technology during those days, and even in the last boom in 2000, this black treasure remain mostly buried under 10,000 ft of dirt. Estimated to contain about 3.6billion barrels of oil in 2007, the estimated recoverable oil has been estimated to be 2.1 billion barrels by the State of North Dakota in 2008.
Location
THE BAKKENS, NORTH DAKOTA
Various estimates place the total reserves, recoverable and irrecoverable with current day’s technology at up to 24 billion barrels. A recent estimate in 2013 then placed the figure at 18 billion barrels and then in April 2013, the US Geological Survey released a report that the expected ultimate recovery is about 7.4 billion barrels of oil. The recent advancement in the use of fracking technology in 2000 saw an increase in the daily oil production to almost half a million barrels by 2010. The oil boom is officially here!
In 2012, Harold Hamm, president of energy company Continental Resources, said that North Dakota could be producing a million barrels a day by 2020. Although this would still be a only a fraction of the 9.8 million barrels the country was producing then, it was a significant number. And then in April 2014, Harold’s prediction was proven wrong as North Dakota joined the few oil producing areas in the world when it hit 1 million barrels a day! This is really significant not just because it joined the ranks of the million barrels a day producers, but the speed with which it hit the million barrels mark.
With this boom comes many opportunities as we see the unemployment rate plummet to about 3% in North Dakota and in certain cities like Williston, Watford City and Killdeer, that percentage plunged to an unheard of number of sub 1%! Wages are among one of the highest in the country and that saw people from as far away as Slovakia coming to North Dakota seeking for jobs, high paying ones as well!
And with that comes one of the most acute housing shortages where many states were still reeling from foreclosures. Homes were simply not being built fast enough to meet overwhelming demands. It has come to the point where workers seeking jobs have first to show proof that they have a place to live first! And that is not always possible!
Exciting news links on North Dakota...
North Dakota oil boomtown of Williston approves $250 million budget - Sep 11, 2014 - Associated Press
WILLISTON, N.D. — The budget for the oil boomtown of Williston has increased nearly fivefold in just three years.
The city commission passed a record $250 million budget for 2015 on Tuesday. Read full article
The Bakken long-term horizon - June 19, 2014 • By Patricia Stockdill for the Tribune
...the Bakken is different. This roller-coaster ride has an entirely different appearance, beginning in approximately 2006.
Since then, the Bakken isn't a roller coaster. It's a rocket. Read full article.