Wednesday, March 21, 2012

I Blew It -- My Bias Got The Better Of Me -- Readers Correct; I'm Wrong -- The Bakken, North Dakota, USA

This morning I posted the story regarding the new CARBO proppant distribution center slated to be built near Dickinson.

I opined that this was not the best place for such a distribution center.

I was wrong.

Some random thoughts explaining why I was wrong. I'm too far behind in blogging to put the data points in a coherent narrative.
  • rail is all important; both Williston and Dickinson have rail; Watford City area does not
  • price of land around Williston has priced itself out of the market
  • Williston is way too overbuilt; time for new operations to move elsewhere
  • once proppants brought to North Dakota, distance not that big a deal (+/-; debatable)
So, I apologize for letting my bias get the best of me. 

This morning I also posted a rambling piece on state and county officials behind the proverbial "8 ball" in planning for infrastructure needs for the Bakken boom once the USGS study came out, and again when Harold Hamm suggested much higher potential production. And that's what made me realize that my post about the CARBO proppant distribution center was wrong -- and the fact that several readers pointed out the error(s) of my ways.

Back in 2008 or 2010, if state and county leaders had had a crystal ball, one of their options would have been to advise spreading the oil service companies around the state rather than let Williston grow like it did. Williston took on too much; Dickinson was too conservative; Watford City not enough infrastructure in place; Minot underutilized (no one could have predicted the flood).  I suppose, in hindsight that even Mandan/Bismarck could have been better utilized supporting the Bakken, but that might be a stretch.

So, a "tip of the hat" to the CARBO folks for looking at Dickinson and not the Williston area. 

4 comments:

  1. Last week North Dakota adopted new oil regulations that will go into effect April 1. I expect that one of the many effects is to almost insure that the EPA will not get involved in the regulatation of fracturing in North Dakota. I continue to be impressed by the ND Department of Mineral Resources and their ability to promote industry and serve the public regulatory needs.

    Hess684

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    1. Overall, I am very, very impressed with the NDIC.

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  2. I do give Williston credit for embracing and taking advantage of these incredible economic opportunities. I can understand that change can be overwhelming at times and leads to several uncomfortable circumstances but rather than fear change they work hard to take advantage of it. The state plays a critical support roll but it is the local leaders who really make it happen.

    Williston should take pride in the fact so many companies have located in their community. Sure it is at the center of the basin but the companies also see the city as welcoming and not afraid of growth and will work hard to overcome problems in a positive way.

    Five years from now it will be a major center of commerce and a place anyone would love to call home.

    Not everything has to locate in Williston for sure but being the center for commerce is something to strive for.

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    1. I agree; much could be written on why "everyone" located in Williston.

      But, I have to admit, it is absolutely amazing how much is located there.

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