Another First for North Dakota: Cattle to Kazakhstan

Is it just me or does this strike you as one of the more unusual stories of the day?

Why in the world would they ship cattle all the way from North Dakota to Kazakhstan? There must be at least one country in the world that has cattle that are a bit closer to Kazakhstan than North Dakota.

The first thing I did when I was sent this story, was check the calendar to make sure it wasn't the first of April.

I honestly don't know if this is a "real" first for North Dakota, but it is North Dakota's first shipment.

Now, connecting the dots.

Back in 2006, the governor headed an 18-member team to Kazakhstan to explore additional export opportunities.

This was a big enough deal to be reported at Wikipedia.

See this posting also.

Update at Minot Air Force Base, North Dakota (USA) - Not a Bakken Story

With all the emphasis on the Bakken and oil in North Dakota, it's easy to forget that the state has a few other things going on.

For many decades the United States Air Force has had a big presence in North Dakota: Grand Forks AFB and Minot AFB.

In the past year or so, a second squadron of B-52s were brought to Minot AFB. Although not quite as big a story as the Bakken it does bring additional revenue into North Dakota. In this Minot Press story, it is about a new dormitory for the base.

This is a pretty mundane story in the big scheme of things, but for me it brings back wonderful memories. In another life, I was fortunate enough to have flown in a B-52 out of Grand Forks AFB. It was an eight-hour flight, flying low level over (and through) the Rocky Mountains.

*****

Meanwhile, the lead story, in the Fargo Forum, is .... drum roll.... drum roll .... the interview with Bristol Palin.  The Fargo Forum bills itself as "North Dakota's #1 news website!" Oooo-kay. The reason I bring this up: I, too, was having trouble finding any news in the oil patch this morning. I guess "we" are all taking a collective breath after all the news this past week: a) price of oil well over $80. (Now trending back down.); b) North Dakota sets new record for number of active drilling rigs (153); c) updates on Hess planning to drill Bakken-like wells near Paris, France; and, d) all the new oil drilling permits being issued this past week.

WLL: Current Presentation

Whiting's current presentation is here.

Some data points from others:

• WLL says they will recover eight (8) percent of the original oil in place (OOIP)
• WLL prefers < 30 frac stages
• WLL does not care for Eco-Pad format
• In addition to four to five long middle Bakken laterals in Sanish sections, WLL putting in "wing" wells (short laterals) as well as  long TFS laterals

These are comments sent in by readers commenting on Q & A portion of the presentation.

Recovering eight (8) percent of the OOIP is a huge story; original USGS estimates of recoverable oil in the Bakken was in the range of 1 - 3 percent. (I believe those figures came from USGS but might have come from other analysts after the 2008 USGS report.)

Off-topic but this reminds me of Apple Corporation twenty years ago. Everyone felt Apple Corporation was doomed with only two percent penetration in the PC (personal computer model). No one thought Apple could survive. "Believers" in Apple noted that the corporation would double in size if it only got to four percent penetration. Not an appropriate analogy, but eight percent is four times two percent. That's huge. And that's still only eight percent.

Biennial Budget and Budget Surplus

UPDATE: after posting the "story" below, I had a very nice comment sent in from "Hess342." That comment is posted. I assume there are better sites to see evolving tax situation in North Dakota, but this is probably as good a site as any to start: Tax Foundation.

It appears, at least superficially, the very little time I took to glance at it, the North Dakota legislators are moving at a measured pace in making decisions. I prefer that to making hasty decisions that "we" might regret later.

Everything suggests that the Bakken will continue to do well for quite some time but unforeseen geopolitical events could change things in a hurry.

So, just to make sure everyone understands: I prefer a measured, well-thought-out plan and based on limited information I can support the action of North Dakota legislators.

I still have significant concerns at the federal level.





Original Blog (with one editorial phrase removed) 
It's not easy finding the North Dakota biennial budget numbers. Oh, I suppose it is easy, but every time I go looking for it, it seems I have problems finding it. I wonder why?

Anyway, there was a story back in December/January 2009 that actually put all the necessary information into one sentence, the entire lead paragraph:

Paul Lucy, director of the Division of Economic Development and Finance, North Dakota Department of Commerce, says that after the last biennial budget of approximately $2.5 billion, North Dakota’s projected budget surplus was estimated at $1.2 to $1.3 billion. “That means we don’t need to increase revenues by increasing taxes,” he says.

If I read that correctly, North Dakota's biennial budget is approximately $2.5 billion. Biennial means two. The state will budget approximately about $2.5 billion over two years. 

Current projections are that the state will earn $1 billion / year from oil taxes going forward. Over two years, that would be $2 billion. ($1 billion/year x 2 years = $2 billion). 

Right now the estimated budget surplus is $1.2 to $1.3 billion. 

UPDATES:

October 22, 2010: North Dakota is in the best shape fiscally, as far as I know, and it isn't even in the top five tax-friendly states for retirees, according to Kiplinger. These are the top five tax-friendly states: Alaska, Wyoming, Michigan, Pennsylvania, and Colorado.  

October 11, 2010: State Coffers Swell, Townships Broke -- Headline