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Monday, August 13, 2012

More Housing -- The Bakken, North Dakota, USA

I've been getting e-mails from readers about all the oil-related activity in the Minot area. It's an interesting phenomenon to watch. Minot is just under the radar in terms of the Bakken. I think there's a lot more going on there than folks are aware; certainly more than I am aware.

Folks have been writing me with anecdotal examples of Minot's growth over the past couple of years; some requested the information not be posted and in other cases, I couldn't post more than what might be a rumor.

The first story of the Baker Hughes complex in Minto; then the recent story of the Berthold grain elevator; then a note about activity between Lansford and Maxbass; then the Port of North Dakota story; and now this story: a flurry of activity in Burlington could see 1,500 housing units in this small town west of Minot, link to The Bismarck Tribune.

I know Burlington very, very well -- at least to the extent that one knows a town by driving through it a thousand times in one's life. When we got to Berthold, coming from Williston, we knew we were just minutes away from McDonald's in Minot. I think there must have been 33 houses in Burlington when I drove through it during my college years. I remember having a crush on a senior who hailed from Burlington attending Augustana College when I was a freshman. It was but a 20-hour crush -- the car ride one Thanksgiving from Augustana to Williston. And maybe the return trip. Or something like that; I've forgotten the drive; I've not forgotten the beautiful woman. She had a distinctive nickname; I'm sure folks would recognize it and she may not appreciate it. Smile.

But I digress. Here's the lede from The Bismarck Tribune story (sent to me by Don):
Hundreds of additional houses could be dotting the landscape of an expanded Burlington city limits in a few years.

The sight of heavy equipment forging a road up the terrain behind what is known as Speedway corner, west of Minot, is just the beginning of construction yet to occur this year and next.

Developers of Highlands Ranch Subdivision are preparing infrastructure to accommodate around 1,500 housing units, which could be built over the next five to seven years.

The master-planned community will include single-family and multi-family homes. Property closest to U.S. Highway 2 & 52 is set aside for commercial uses such as retail and professional offices.
The population of Burlington in the 2010 census was 1,060.

5 comments:

  1. My land is 6 miles ne of Minot and I just turned down a lease opportunity for my land. I was advised by legal and other's with oil wells the offer was to low. Over 25,000 acres were leased in this track. The seismographer's are doing their thing on the land adjacent to this property. So low activity is getting closer to Minot to the west, the Spearfish formation is creating activity to the north and obviously some interest exists directly to the east.

    As for housing, its difficult to get housing built in Minot for a variety of reasons. 1) last years flood. 2) the town was examining needs at the time of flood for upgrades and potential growth. 3) the town is now growing faster than they had projected (five years ago 30 new homes- singly family), my development will have 200 new homes this year.
    Halliburton and Baker Hughes have large facilities built in last two years, BN intermodal site, Enbridge expanding, Hess has been there awhile, Pumpco (whatever they do, but they have a big site), this list can go on and on, but for the most part this is all new to Minot in last few years. I place Minot today where Williston was 3 or 4 years ago, just getting busy, getting full, before the boom.

    Kent

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    1. Hi, Kent,

      Yes, it's everything you mention and (probably) more. Someone wrote to tell me the Port of North Dakota was no big deal, and maybe it isn't, but it caught my attention, especially when looking at the location on Google maps, and recalling the BNSF expansion plans for Minot. That was probably the tipping point, those two stories, to convince me that Minot is the under-reported story in the Bakken. And now the Burlington story just west of Minot. Huge story.

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  2. The port of ND is hard to get my hands around. I don't see how it can create 2,000 jobs, but here is what I know. They have acquired 3,200 acres for trains and cargo loading facilities. Word is 40+ miles of tracks. What it is going to do is create activity in Minot. Trucks picking up and dropping off everything. So does the supplies stay in Minot short term or promptly moved out? I don't know. But its a multiple of uses. Grain, oil, going out, materials coming in. There are too many items involving oil being discussed in and around Minot to discount. Time will tell.

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    1. Yes, I agree. The 2,000 jobs figure seems a stretch, especially with automation these days. But 3,200 acres, 40+ miles of track, etc., that is not trivial. It will be an interesting story to follow. I will also place this comment at the original post regarding the Port of North Dakota. Thank you for taking time to comment.

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  3. Burlington is going to grow with new housing, not so much that the area is booming. It is growing because the price for land development in Burlington is cheaper than Minot. Minot has nearly 1,500 families still displaced because of the flooding. Burlington is where many of these families will end up living because they can't afford to live in Minot anymore. As far as the Port of ND, I agree as well. 2,000 employees? Just curious where they got those numbers. But it will be interesting to see if it really happens. Baker Hughes did lay off a bunch of people in Minot. There really isn't anything happening right now in Minot as far as needing these large facilities. Most of the drilling is still in the west and the demand is still on the Williston area service companies. Why move trucks and equipment from Minot to Williams county, McKenzie county or Divide county when they can service all of these new wells out of the Williston office? But eventually the oil could move east, but it hasn't yet.

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