- Caterpillar
- Phoenix International, supplier to John Deere
- Monsanto
- Cargill
- Microsoft
...the oil industry is responsible for only 25% of the state's revenue collections.I keep thinking back on the January 21, 2011, post comparing North Dakota and Minnesota.
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The Caterpillar data points- August 1, 20111 press release from Caterpillar
- announced plans to "significantly expand its remanufacturing facility in West Fargo
- drive train components for large off-highway trucks and mining equipment
- final drives, transmissions, torque convertors, steering clutches
- $50 million investment; 225,000-square-foot addition
- construction to begin August, 2011; operations commencing in June, 2012
- will add ~250 new workers over three years; total workforce ~ 550 in West Fargo
- Caterpillar's two other remanufacturing facilities are in Singapore and Shrewsbury, UK
Cargill currently expanding
Reaffirming its commitment to the region, Cargill will rebuild and expand its oilseed processing plant in West Fargo. Completion of the engineering plans will determine the project's final costs, which are expected to total more than $50 million.The stories go on and on and on.
"The existing facility has served us well since we built it 30 years ago, and we are now looking at rebuilding it to meet the needs of our customers for the next 30 years," said Jaysen Schock, facility manager.
Construction is expected to start late fall 2011 with completion slated in time for the 2013 harvest.
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Several things come to mind:
- location, location, location -- intersection of I-94 and I 29
- plenty of land
I think it's the business-friendly state North Dakota advertises.
1 more:
ReplyDelete"A tractor plant in Fargo is requesting a five-year tax break on an addition that owners say will add 48 jobs with an annual payroll of more than $3 million.
KFGO radio reports (http://bit.ly/IOw1Qq ) that Case New Holland has requested a tax break on a 20,000-square-foot manufacturing space for making tractor and combine parts. The parts would be shipped to other plants in North Dakota, Nebraska and Belgium"
http://www.jamestownsun.com/event/article/id/160718/group/News/
anon 1
That's quite a mix: "North Dakota, Nebraska and Belgium."
DeleteOne would think "New Holland" would also be shipping to the Netherlands. Smile.
Seriously, what amazes me is how much growth there is in Fargo. That is an amazing city.
HE is the biggest problem with ND right now. The growth of government is growing twice as fast as the federal government. The Governor (who I am a fan) stands up and states that the ND model is what should be taken nationwide. That model is 10-12 years ago when we had a fiscally conservative governor (Schaefer), if oil revenues dry up, ND is broke in 18 months, they can not afford the growth in government that has occurred in the last 5 years, but its masked by the even faster growth in oil revenues (and related sales and use taxes related to the oil industry). Granted ND has always had a more stable economy due to agriculture, but it is a misnomer that North Dakota has created a new model that should be followed. The Legacy fund is a great concept, but realize ND only started to save money. I can go on and on about this subject. But more people have to take a look at the underlying facts. Fargo on the other hand is a very diversified economy, agriculture, 20,000 college students, high tech with 2,000 Microsoft jobs, major medical facilities, customer service with US Bank and Wells Fargo service centers. That is a model. (aside from their school board and drunken sailor spending, but that is a rant for another day).
DeleteI don't understand the "new" model. All I know is that oil money going into the Legacy fund is not being invested.
DeleteThe other day I repeated the oft-heard joke that with oil revenue, farmers can now afford to farm. That may be more true than we realize. Success begets success.
A good portion of farmers do not own their minerals on their land.
DeleteThat is true; I've heard the stories. But many do.
DeleteEven if they don't own the mineral rights, they are paid for use of their land in other ways, and often quite generous, though I know "generous" is in the eye of the beholder.
Pipelines are another source of income for surface owners.
When I say "new model" that Hoeven and current government talk about in regards to ND, I am saying its not a good model. ND's government has grown twice as fast as the federal government the past ten years. The only reason they have been able to do this is oil revenue, but royalty and sales from oil related activities in Western ND. ND leaders talk about this model and how Washington should be like ND, well its really not a good thing at the ND level. ND has been a big government, but no one has noticed, because the money exists to pay for it. The concern is what happens when oil revenues don't keep up? People in general feel ND has billions in cash reserves, when the reality the only cash ND has is from the last year surplus. All previous surplus's get spent by the next legistative session. The Legacy fund has only just started to save money. If we have 10 more years of strong oil revenues, maybe than ND will be set financially for the next generations.
DeleteAn example on the land I sold: I was the general partner on the 1,000 acres that was sold, so I was contacted by the land man to see if I wanted to lease the mineral acres. The quarter section of land next to my land, I owned 20% of the mineral rights or 32 acres. My aunt who owned 20% as well was not, has not been contacted by a land man about her 20% interest. Why I was contacted I suppose my name was on a larger tract of land, versus her interest being much smaller. I don't know the answer.
DeleteAgain this land was 6 miles northeast of Minot, not the Bakken, but land that has been leased and re leased many times over the past 50 years. Land man told me it was one of the majors that was doing the leasing, for whatever that is worth.
To give an example I sold 1,000 acres of farmland near Minot. The farmer that bought the land received no mineral rights. My family and siblings had 20% of the rights. I would say over half of the rights are held by out of state residents. At one time, the Bank of ND was a large owner of mineral rights. When farmers lost land in the 80's and taken over by banks, the mineral rights got seperated. Another example is mine when land passed from generation to generation. The above mentioned minerals is divided between 17 cousins, two generations removed from the owner that had 100% and farmed the land.
ReplyDeleteSeveral issues brought up by that note including the difficulty the oil companies have locating all the mineral owners.
DeleteFrom DTC Minot: Have you seen the way the oil company's have been treated in the last week like the special use permit that was jerked out from under Baker Hughes last week by the planning committee in Minot.
DeleteYes, I did see that. BHI was there first. The school was moved there after the fact due to flooding last spring. The fire marshall signed off on the safety of BHI. And Minot nixed it.
DeleteI blogged about it here.
I am quite dismayed.