Target Logistics Man Camp May Be Converted To Hotel -- January 12, 2017

From The Dickinson Press:

• Williston, 13 104th Street East
• 40 acres
• 636-bed hotel
• plan presented to county's Planning and Zoning Commission
• would remove cabins from the site; re-purpose buildings to meet zoning and building code standards
• the city rezoned the property from light industrial zoning to general commercial, which allows hospitality operations
• land was originally purchased in Williams County, but annexed by city, 2013

Saudi Arabia, OPEC Announce Cut; Two Hotels In Williston To Close -- September 29, 2016

Minimal blogging through the weekend; traveling. 

Active rigs:

	9/29/2016	09/29/2015	09/29/2014	09/29/2013	09/29/2012
Active Rigs	34	69	186	184	190

RBN Energy: US DUCs.

At long last, the Energy Information Administration (EIA) has reported an “official” estimate of the U.S. drilled-and-uncompleted well (DUC) inventory as part of its monthly Drilling Productivity Report.  DUCs are a critical factor in forecasting production trends, as many of these wells are likely to be some of the first to come online as soon as prices move higher and thus have the potential to boost production quicker and easier than would otherwise be the case. However, the number of DUCs has been a difficult thing to measure, though not for lack of trying. There are, in fact, widely varying counts from many different sources circulating in the industry. Today, we begin a short series on these latest DUC counts and their potential implications.

Drilled-and-uncompleted wells, or DUCs, aren’t a new phenomenon. In fact, producers have always carried an inventory of DUCs. But in the environment of low prices and slashed capital budgets the market has been experiencing for the past 20 months or so, DUCs have taken on new relevance, not only as a tool for producers to manage their lease agreements and rig activity, but also as a control valve for production volumes, whether it is to defer supply to a future date or to quickly and economically turn on new production as prices rebound and/or as pipeline capacity is built. You can imagine, then, how without an accurate estimate of DUCs and the rate of actual completions, the current market is ripe for underestimating future production volumes that solely rely on existing and newly drilled wells.

Saudi Arabia's trillion dollar mistake. CNBC.  From WSJ.

Sources told Reuters that OPEC hammered out a deal on Wednesday to reduce the cartel's production to 32.5 million barrels per day from around 33.24 million, with output levels for each member to be determined in November.

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Hoboken Commuter Train Crash

Updates

October 1, 2016: I remember when this story first broke. Every update in the first 12 hours said that the engineer was cooperating with law enforcement. Now, we learn that as of today, investigators have still not talked with the engineer, and that asbestos concerns in the terminal has slowed down the investigation. The investigation is expected to last a full year. 

Original Post 

At least one dead; 70+ injured; in commuter train accident, Hoboken, NJ. Thank goodness it did not involve Bakken crude oil. I wonder if NY/NJ governors will ban commuter trains which have now killed more Americans than CBR carrying Bakken oil. Or any oil for that matter. All that technology being spent on "driverless cars" seems to be a solution for a problem that doesn't exist. Maybe they should be working on "driveless" technology for killer kommuter trains. Latest: the killer kommuter konductor had "health problems." (TV report, McDonald's, crawler, 12:16 p.m. Central Time.)

By the way, FWIW, another Tesla "on auto-pilot" crashes -- this one on German autobahn. 

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Bakken Economy

Two Williston Hotels Closing

The Dickinson Press:

The Missouri Flats Inn, once featured on a TV reality show “Hotel Impossible,” and the Marquis Plaza and Suites will be closing their doors this week.

In addition, it appears that man-camps in the Williston area, including the large one near Tioga, have closes. I can't say for sure, but I saw no vehicles parked at any man-camps in the Williston area (there may have some minor exceptions). The man-camp on the Alexander bypass appeared closed (hard to say) but "rooms" were advertised at $24.99/ night. My understanding is that man-camps in Williston were to be closed by September 1, 2016, but there was some question regarding compliance. In flux. Perhaps a local newspaper will provide updates.

It appear the El Rancho Motel is closed pending a sale (again, I do not know for sure). The co-located restaurant remains open.

For some notes and photos of the hotel boom in North Dakota at the height of the boom:

• photos of several hotels, motels in Williston

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The Market

Mid-day trading: Dow 30 down 162 points. Oil up the past two days on OPEC's announcement: up to $47.69 (which is no better than $40 for Saudi Arabia).

Agree Completely On Man-Camps -- April 11, 2016; Seeing Things That Aren't There -- Or Making Mountains Out Of Molehills

Updates

April 12, 2016: see stories below regarding ObamaCare. The Boston Globe, today, has an op-ed on this very issue, validating what I said below. 
 

Original Post

From The Williston Herald:

Nearly six years ago, as Williston strained to accommodate a flood of workers descending on the area in the hopes of finding work in the oil patch, city officials voted to allow crew camps as a solution to meet immediate needs. But, from the beginning, company-run housing was not meant to be permanent.

“I think that has gotten lost a little bit in the story,” said Ward Koeser, who served as Williston’s mayor for 20 years, and was in office when ordinances allowing man camps, followed by ordinances setting expiration dates for them, were enacted.

“I think we somehow forgot down the line that man camps were always temporary,” he said.

Gasoline demand, from John Kemp: is US gasoline consumption being overstated? Or making a mountain out of a molehill.

The EIA's weekly and monthly surveys both showed domestic gasoline consumption was subdued in January, most likely because of bad weather affecting large parts of the country at the beginning and end of the month.

But consumption reportedly rebounded to record seasonal rates in weekly surveys for February and March leading some analysts to question whether the EIA is under-estimating exports.

This is certainly possible. The EIA's estimating procedure has a backward-looking component so it can miss sudden changes in the rate of exports and only responds with a lag.

The question is how large these errors in estimating exports tend to be and how much of an error they impart to estimates of domestic consumption.

U.S. gasoline exports are very small in relation to domestic consumption so even relatively large errors in estimating exports have only a small impact on consumption estimates. 

In 2015, the country exported an average of 475,000 barrels per day (bpd) of finished gasoline and another 150,000 bpd of blending components compared with domestic consumption of nearly 9.2 million bpd.

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Others Will Follow

The Fiscal Times reports:

The Affordable Care Act suffered another jolt late last week with the news that UnitedHealth Group, the nation’s largest health insurer, was making good on its threat to pull out of Obamacare, beginning with its operations in Georgia and Arkansas.

UnitedHealth roiled the market last November when it revealed that it was considering exiting Obamacare after incurring hundreds of millions of dollars in losses related to ACA business. Then UnitedHealth CEO Stephen Hemsley confessed to investors meeting in New York in December that the company should have stayed out of the program a little longer to better gauge its profitability potential.

The company had cautiously tiptoed into the market in January 2015 after sitting out the first full year of Obamacare operations in 2014. “It was for us a bad decision,” Hemsley admitted to his investors. “In retrospect, we should have stayed out longer.”

So it wasn’t a huge surprise on Friday when UnitedHealth spokesperson Tyler Mason confirmed to The Washington Post that the company, indeed, was pulling out of Georgia and Arkansas, two relatively small states that proved to be highly unprofitable terrain for the company.

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Just How Bad Is The Trainwreck? Pretty Bad

Investor's Business Daily is reporting:

To little fanfare and virtually no media coverage, the Congressional Budget Office sharply downgraded its forecast for ObamaCare in its latest report, issued in late March. By just about every measure, things are looking worse than they did a year ago.

First, the CBO has cut enrollment goals for the ObamaCare exchanges. Its March 2015 report projected that enrollment would top out at 22 million. Now it puts the ceiling at 18 million. And given ObamaCare’s track record so far, even that’s optimistic.

Lower enrollment numbers should mean lower taxpayer costs, since fewer people will be getting taxpayer-subsidized insurance. But higher-than-expected insurance subsidies are soaking up much of those savings.

Last year, CBO projected that the average subsidy would be $4,040. Turns out, it was $4,240. CBO now thinks subsidies will average $4,550 next year instead of $4,250. That is likely a reflection of the fact that premiums leapt upward this year, and are likely to make another big jump for next year.

As a result, even though the CBO expects that 4 million fewer people will be getting insurance subsidies in 2024, the total cost of those subsidies paid out that year will stay exactly the same: $99 billion.

ObamaCare’s Medicaid expansion is also turning out to be far more expensive than planned, forcing the CBO to hike its 10-year Medicaid cost projection by $146 billion. That’s largely the result of far more people signing up for Medicaid — 2 to 4 million more — than the CBO had previously expected.

In addition, far more workers will find themselves without employer-provided benefits than promised. In its initial report on ObamaCare in 2010, CBO said 3 million workers at most would lose their employer health benefits because of the law. Last year it claimed that 7 million will have lost workplace coverage in a decade. Now it says 9 million will likely be forced off employer plans.

And what about the uninsured? When Democrats shoved ObamaCare onto President Obama’s desk in 2010, the public was told that it would cut the number of uninsured by 32 million. That number has since dropped 25%.

By any measure ObamaCare is a debacle. Anyone still supporting ObamaCare is a) not paying attention; b) is a bit dull-witted; c) is making money off the scam; d) is a political demagogue; and/or e) is gaming the system. 

Monday's News -- February 8, 2016; Ford To Double Capacity In Mexico -- The 800-Pound Gorilla: ObamaCare; "Massive" Wind Farm Proposed For North Dakota By OOS Company

One can vote on Super Bowl ads here.

The Mideast just keeps getting messier. Turkey's hostility to one of America's most effective allies -- the Kurds -- simply undermines the effort to take out ISIS.

This Indian should have been buying lottery tickets.

Speaking of India, the country's telecom regulator bans Facebook's free basic service. Regulator says everyone needs to pay for internet; can't be given away for free.

Speaking of India, again, the country has surpassed China for bragging rights as the "growth company." India's economy expanded 7.3% last quarter. The country uses a lot of coal. A lot.

Wow, that took awhile: Volkswagen's "quality" - control chief resigns. I guess someone is using the phrase "quality control" loosely.

The Mideast migrants keep flowing into Europe. The Greek government want to build migrant camps on the islands; Greek people say "ouchí."

I disagree completely. The Super Bowl review at TWSJ:

Truth: outside of that Denver defense, it wasn’t an especially well-played game. A lot of it was snoozy. There were punts. And some more punts. And a few more punts (15 in total, tied for second-most in Super Bowl history) There were turnovers consequential and turnovers inconsequential. A Carolina field-goal attempt that thud-DONNKKKED off the upright. There were moments it felt like less like a Super Bowl and more like a Dolphins-Browns game. A Dolphins-Browns preseason game.

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Ford-Mexico

From a couple of days ago: Ford to more than double Mexico production capacity in 2018. Auto maker will build new plant in Mexico, expand existing factory. Better Mexico, than China.

Ford Motor Co. will build a new assembly plant in Mexico and sharply increase factory output from that country, representing the latest shift of investment abroad by a Detroit auto maker following the signing of a costly new labor deal.

The No. 2 light-vehicle seller in the U.S. plans to add 500,000 units of annual Mexican capacity starting in 2018, more than double what it built in 2015, according to people briefed on the plan. The plan mirrors General Motors Co. ’s $5 billion investment to double Mexican capacity by 2018.

Ford will build a new assembly complex in San Luis Potosí, and expand an existing factory near Mexico City. The moves will make room for several models, including a yet-to-be-disclosed hybrid vehicle that is described as a Toyota “Prius fighter,” and will allow Ford to focus its U.S. factories on higher-profit trucks and sport-utility vehicles.
Ford last year built 433,000 vehicles in Mexico, or 14% of its North American production.

Costs for the project likely will exceed $1 billion, people familiar with the details said, with factory construction beginning later this year. It follows a $2.5 billion investment Ford announced last spring to build an engine and a transmission plant in Mexico.

Why the interest in Mexico? Gee, I wonder.

Detroit auto makers have long built cars and trucks in Mexico, but the country is looking more attractive following a new labor deal struck in November with the United Auto Workers that raises wages for U.S. factory workers.

Labor rates in Mexico are roughly one-fifth of those earned by unionized workers in the U.S., a gap that is only expected to widen as UAW wages approach nearly $30 an hour in coming years, representing as much as a $10 increase for some newer hires.

But again, the article does not mention the other much, much bigger expense: ObamaCare.

It looks like this is the business plan: low-margin cars to be built overseas; high-margin SUVs and trucks to be built in existing US factories. 

Energy is inexpensive in the US; will get a bit more expensive as cost of intermittent energy impacts rates. But energy will become less expensive in Mexico with all that natural gas the US is shipping to Mexico. Lower labor costs, lower energy costs.

Speaking of rising costs of electricity due to the cost of intermittent energy: in a state which has some of the lowest utility rates in the nation, there is an opportunity to raise rates. According to the Bowman County Pioneer, a "massive" wind farm is proposed for the county, data points:

• again, an out-of-state developer who can't get wind energy projects in his own backyard
• a Virginia energy company: Apex Clean Energy, Charlottesville, VA
• from south of Rhame to US Highway 85
• "the farm would effectively cover the entire county" -- one resident
• "at least" 100 turbines
•  25,000 to 30,000 acres
• 200 to 300 MW annually
• by comparison: the MDU wind farm in the same area: 13 turbines

As usual, some numbers rounded, and arithmetic errors are common. 

The cost was not in the article, unless I missed it, which is possible. At $1.5 million / MW, it would be a 300 x $1.5 million project -- a half-billion dollar project.

Bowman County: 1,167 square miles x 640 acres = 750,000 acres.

30,000 acres = 50 sections; generally 36 sections in most townships in North Dakota.

Well, it would give me something to look at when I drive up from Texas back to the Bakken.

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Man-Camp Focus: Time To Move On

Restaurant and real estate sectors are the ones to watch.

Huge competition among Menards, Home of Economy, Wal-Mart.

Everything else will take care of itself.

The man-camp story is a good-news story -- except for the man-camp operators. Don't feel bad for the man camps. They advertised themselves as "temporary." Oil companies say they need the man-camps because their workers are mobile, back and forth from the south to North Dakota. The roughnecks are flexible, smart, adaptable. They're as good as US Marines and US Army finding places to stay when deployed. Instead of man-camps, they will move into town. Man-cap operators might be smart to invest in really, really cheap motels and apartment complexes, as those owners look to exit. From The StarTribune:

North Dakota’s unemployment rate is still an enviable 2.7 percent, and the jobless rate is even lower here in Williams County — 2.2 percent, up a percentage point from a year ago.

Camps like the Bear Paw Lodge or Black Gold reflected the allure and growing pains of an oil rush that overwhelmed the housing supply and infrastructure to the point that people camped in parking lots and homes rented for big-city prices — $3,000 a month or more. Many camps had their own security and strict rules against alcohol and drugs, as well as maids, fitness centers, high-thread-count sheets and 24-hour meal service.

But now, about 50 miles from here, Capital Lodge in Tioga, built for 2,000 workers, is a fenced-off ghost town. About 130 miles away in Dickinson, a 600-bed camp had dwindled to 30 guests when its owners shut it down for the winter. In Williston, where the population soared from 12,000 to more than 40,000 at the height of the drilling frenzy, local leaders ordered the remaining man camps to close by the summer.

In the half-empty cafeteria of one camp operated by Target Logistics just north of Williston, electrical workers and pipe specialists one recent morning were starting and ending their 12-hour shifts over a breakfast of eggs, sausage and coffee as thick and black as crude oil. They talked about how many drilling rigs were operating (46 across the state, compared with 190 two years ago), their falling overtime pay and friends who had gone elsewhere for work.

The New York Times has pretty much the same story, "built up by oil boom, North Dakota now has an emptier feeling." Again, the writers/editors are fascinated by "man-camps."

The “man camps” sprang up from the prairie, rows of trailers and modular steel boxes that housed thousands of workers chasing their fortunes in North Dakota’s oil fields. But these days, the man camps are missing something: men.

Roughly eight years ago, at the peak of the last recession, oil drilling began to transform these remote corners of the plains into an economic beacon, attracting billions of dollars in new investments and thousands of workers in search of good-paying jobs and an escape from America’s economic pain. But now, as oil prices have skidded to $30 a barrel, new drilling has dried up here, and the flood of wealth and workers is ebbing.

Williams County's Largest Man-Camp Closes -- December 1, 2015

The Dickinson Press is reporting:

While the city of Williston was deciding the fate of its own man camps, market forces were deciding the fate of another. Capital Lodge, between Ray and Tioga, has closed, according to a report in the Tioga Tribune.

A visit to the site Friday afternoon found a ghost town.

Capital Lodge opened in the fall of 2011 with about 130 residents in 13 of the total planned 2,500 beds .At the time of its closing, it was permitted for 2,000-plus beds, but, according to recent figures from the county, it had only 100 residents.

The lodge had built an on-site sewer treatment plant with a capacity for 3,000 residents. The crew camp is across the road from a Target Logistics facility along U.S. Highway 2. 

I remember these two man-camps when they were first going up.

This is just the way it was supposed to work -- temporary facilities. I hope the county has these man-camps bonded for reclamation.

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Compromise

5-year highway bill re-authorizes Export-Import Bank; should pass Senate, House

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A Note For The Granddaughters

Breaking news now: 337 sei whales beached on southern Chilean coast; cause of death unknown. Current population estimated at 80,000, about one-third of pre-whaling days.

Baleen whales (Mysticeti)

• right whales
• rorquals, includes sei whales, minke (less rorqual)
• gray whale
• pygmy right whale
• bowhead
• humpback
• fin
• blue whale

Toothed whales (Odontoceti)

• oceanic dolphins
• narwhal and beluga
• porpoises
• sperm whale
• dwarf and pygmy sperm whales
• beaked whales
• river dolphins (Amazon, Baiji [Yangtze], south Asian [India, Pakistan], La Plata [Argentina, Uruguay)

Excellent Bloomberg Article On Real-Estate Situation In The Bakken -- September 29, 2015

As best I can tell, this is a pretty good description of what I saw in the Bakken just a couple of weeks ago. BloombergBusiness is reporting:

Chain saws and staple guns echo across a $40 million residential complex under construction in Williston, North Dakota, a few miles from almost-empty camps once filled with oil workers.

After struggling to house thousands of migrant roughnecks during the boom, the state faces a new real-estate crisis: The frenzied drilling that made it No. 1 in personal-income growth and job creation for five consecutive years hasn’t lasted long enough to support the oil-fueled building explosion.

“We are overbuilt,” said Dan Kalil, a commissioner in Williams County in the heart of the Bakken, a 360-million-year-old shale bed, during a break from cutting flax on his farm. “I am concerned about having hundreds of $200-a-month apartments in the future.”

Laborers descended on the state, many landing in temporary settlements of recreational vehicles, shacks and even chicken coops. Energy companies put up some workers in so-called man camps. In 2011, Williams County commissioners approved 12,000 beds, says Michael Sizemore, the county building official.

The camps were supposed to be an interim solution until subdivision and apartment complexes could be built. Civic leaders across the Bakken charged into overdrive, processing hundreds of permits and borrowing tens of millions of dollars to pay for new water and sewer systems.

Williston has issued $226 million of debt since January 2011; about $144 million is outstanding. Watford City issued $2.34 million of debt; about $2.1 million is outstanding.

Construction companies and investors went along for the ride.

And this is the nut:

"We didn’t build temporary housing on purpose because we viewed North Dakota as a long-term play," said Israel Weinberger, a principal at Coltown Properties, which invests in multi-family real-estate developments. "We think the local production of oil is here to stay. Yes, prices have dropped, but it’s a commodity and commodities fluctuate. There is always a risk."

We talked about this very issue in the blog early on (generally in the "comments" section, not in the bodies of the blog). I remember the arguments very, very well. I was quite clear in my mind; I don't recall how I posted at that time; I did not want to step on toes. Even so, I remember folks writing me, upset with what I was saying.

More:

The New York City-based company plans to complete 35 units in Watford City this winter and break ground on another residential project in March, he says.

That's exactly what I saw when I was back in the Bakken just a few weeks ago; they were still building permanent structures. And lots of them. But the man-camps were coming down; and hotels on the prairie were being boarded up or standing empty.

Much more at the link. Much, much more.

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But Will It Have Solar Electricity?

Ground broken for Black Hills Corporation's new headquarters building in Rapid City. Rapid City Journal is reporting:

Over the next two years, a $70 million corporate headquarters will rise at a site on the southwest corner of U.S. Highway 16 and Catron Boulevard in south Rapid City that some predict could the forerunner of a new corporate corridor in the Black Hills.

On a rainy Monday afternoon, corporate leaders from Black Hills Corp. invited about 60 local economic boosters and public officials for a formal groundbreaking at the 31-acre site where the company will further solidify its 130-year relationship with Rapid City, its local employees and their electric customers.

Black Hills Corp. is the parent of Black Hills Power, which serves about 65,000 customers in 23 area communities. Overall Black Hills Corp. has about 800,000 customers in seven states, though that number will rise to roughly 1.2 million customers in eight states due to the $1.9 billion acquisition of Source Gas. Buying the natural gas provider will add Arkansas to the company's reach when the deal closes next year.

The campus plan calls for a Y-shaped structure with three wings, two of which will be built during the initial phase of construction. The $70 million price tag will cover the 200,000-square-foot west and south wings, access road work, 1,030 parking spots and a plaza for employees. 

But will it run on solar electricity with Elon Musk back-up battery packs? If not, why not? Enquiring minds want to know.

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The Gift That Keeps On Giving

This is an "old" item but I don't recall posting earlier, though I posted similar articles from other states with same theme.

StarTribune is reporting:

Health insurers are seeking large premium increases for 2016 in Minnesota, with average jumps of more than 50 percent proposed by one of the state’s largest health plans.

The proposed rates were released by the federal government Wednesday, a few days after similar data for most other states prompted widespread talk about how medical costs are running higher than expected for many insurers.

For now, the increases are just proposals. Final numbers in Minnesota won’t come until October, and only after a regulatory review process that could knock them down.

Even so, the filings touched off a political skirmish, in part because they apply to the portion of the market that includes the state’s MNsure health exchange. Plus, the proposals suggest premium hikes could be on the horizon for more than 225,000 Minnesotans.

“The proposed rate increases from Minnesota’s health insurers are outrageous, given that our state’s health care costs have been increasing by only 3 percent,” Gov. Mark Dayton said in a statement.

For more on MNure, see this 2013 post. No doubt things have improved 110%.

I'm glad to see that Mark Dayton has weighed in. That was probably the last we will hear from him on this subject, at least until next year.

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North Dakota #1 In Honey; Minnesota #1 In Potential ISIS Recruits

I can't make this stuff up. StarTrib is reporting:

Minnesota recruits lead the nation in the number of people who have left the country to fight with terrorists aligned with the Islamic State of Iraq and the Levant in Syria, according to a scathing congressional report that details failures by the U.S. and western countries to stem the flow of combatants to the Middle East.

The report, released Tuesday by the U.S. House Committee on Homeland Security, specifically cites several Minnesotans from the Somali-American community who sought to join ISIL, highlighting its online recruiting success through peer-to-peer recruiting by using social media and sophisticated online messaging techniques.

Young fighters from at least 19 states have tried to join terrorists in Syria and Iraq.

Minnesota recruits comprise 26 percent of the sample of persons reviewed by the committee’s bipartisan task force. California and New York had the second most recruits, with each state comprising 12 percent, according to findings. At least 250 Americans, mostly young men, have attempted or made it to Syria and Iraq, compared to about 100 one year ago, according to law enforcement.

No quote from the governor. At least these Somalis have left the US to fight Russia, Syria, and Iran. A win-win for all, I would say. 

Target Logistics Completes Judson Lodge West Of Williston, US Highway 2

The Minot Daily News is reporting:

Williston Target Logistics, a workforce housing provider, has completed the development of its Judson Lodge along U.S. Highway 2 west of Williston.

The first phase opened in October 2012, and the second phase has just been completed - bringing the total number of available rooms to 100. Liberty Oilfield Services will be contracting all 100 rooms.

The factbox at the link reports that Target Logistics has 12 facilities in North Dakota:

• Tioga Lodge, 1,038 beds with 100 RV spots
• Bear Paw Lodge, 496 beds
• Williston North Lodge, 415 beds
• Williston Cabins, 124 beds
• Muddy River Lodge, 158 beds
• Williams County Lodge, 300 beds
• Judson Executive Lodge, 100 beds
• Dunn County Lodge, 596 beds
• Watford City Lodge, 334 beds
• Stanley Hotel, 338 beds
• Stanley Cabins, 96 beds
• Company #9 Mobile Crew Camp, 80 beds

Of the 16 Target Logistics properties in North America, 12 are in North Dakota.

This actually caught me by surprise; I was pretty much sure that new man-camps were a thing of the past in the Bakken, now that the boom is over (according to The Atlantic Monthly, in a story a year or so ago. I guess you can't believe everything you read).

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130 Million YouTube Views

I forget how I stumbled across this video for the first time some days ago.  Was it through Dragon Tattoo? I forget.

Summertime Sadness, Lana Del Rey

Reuters' Scheyder's Video Diary: North Dakota Man-Camp

Traveling; short layover in Dallas.

Notes will be brief.

A reader sent this video; huge thanks.

Reuters' Scheyder's North Dakota "man camp" video 03-20-13

Welcome to the “man camp” (2:44) - Rules at a North Dakota “man camp.” No alcohol. Leave your muddy boots at the door. Cost: $120 a night. Food served 24 hours a day. “Man camps” are the temporary housing solution for the energy boom’s workers.

http://www.reuters.com/video/2013/03/20/reuters-tv-welcome-to-the-man-camp?videoId=241763226&videoChannel=117849

Huge Story: Target Logistics Selling Bakken Crew Camps to Algeco Scotsman

The Bismarck Tribune is reporting that all those Target Logistics Bakken crew camps we've read so much about over the past three or four years are being sold to Algeco Scotsman for $625 million.

Crew camps: good, bad, or indifferent, it has always been my impression that Target Logistics was a good neighbor, a great member of the community. My few dealings with representatives of the company were always good.

On another note, any company willing to spend $625 million in the Bakken suggests to me that "someone" thinks the Bakken is going to be around for awhile. I can't even begin to do the math, but it seems like a big deal.

Algeco Scotsman, from their website:

Algeco Scotsman is the leading global business services provider focused on modular space and secure storage solutions. We have strong capabilities in safety, design, engineering and construction that allow us to provide a comprehensive range of portable temporary and permanent buildings available in a range of layouts and finishes. We can customize buildings to specifically meet our customer’s needs.

The company operates as Williams Scotsman in North America, Algeco in Continental Europe, Elliott in the United Kingdom, Eurobras in Latin America, Ausco Modular in Australia and Portacom Building Solutions in New Zealand. The company and its affiliates manage a fleet of more than 340,000 units, with operations or affiliates in 37 countries including Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Finland, France, Germany, Hungary, Italy, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Ukraine, United Arab Emirates, United Kingdom, and United States. The company has a reputation for exceptional customer service, flexibility in meeting customer needs, innovative products and services, and efficient business operations. Algeco Scotsman's global scale and local market expertise enable us to provide exceptional value to our customers.

The site has some great photos, as would be expected. 

And, so, I guess, another Bakken chapter begins. This is really quite exciting.

Target Logistics Adding More Units -- The Bakken, North Dakota, USA

Target Logistics soon to have more units available (electronic, paid subscription; no link yet)

Data points:

• Target Logistics currently has 3,700 beds in North Dakota; most of them in Williams County
• the company is close to adding two new crew camps
• Judson Executive Lodge opens in mid-June; US Highway 2 west of Williston; 100 beds;
• the expansion to Stanley Hotel (in Stanley) opens in mid-July; 335 beds
• both will feature "Executive" rooms with private baths; daily housekeeping; satellite television, etc
• brings Target Logistics total to 3,719 (sic) beds; nine crew camps
• largest is the Tioga Lodge: 1,205 bed
• 2nd: Bear Paw Lodge, north of Williston: 686
• 3rd: Dunn County Lodge: 600
• 4th: Williston North Lodge: 415 
• the company has an additional 1,000 bed in Texas, Mexico, and Arizona
• will soon begin construction for 2,000 new rooms in North Dakota and Texas

Target Logistics Ad-Documentary

Bakken Housing Crunch Spreading East Across the State -- North Dakota, USA

Link to Bismarck Tribune here.

Outside of Grand Forks, vacant apartments [in the state of North Dakota] are almost nonexistent. He said the vacancy rate in Williston and Minot is zero. In Dickinson it’s half a percent and in Bismarck it’s 1 percent. Even in Fargo the rate is low, at less than 4 percent. Between 5 and 8 percent is considered healthy.

Carbone said people are coming to North Dakota thinking it’s a land of opportunity but many of them are unprepared for the housing crunch.

Lots of comments could be made, starting with temporary housing.

I remember about nine months ago one of the oil companies, it might have been BEXP, asked the county for permission to simply add a few more temporary units to the land it already had set aside for such units. The county said no. Williams County has put a moratorium on new temporary housing.

Modular Builders -- The Bakken, North Dakota, USA

Updates

July 8, 2012: Oil patch driving Montevideo builder in Willmer, MN: Friendship Homes. 

Original Post 

In case some folks didn't see this -- it was sent in as a comment:

Palomar Modular Buildings is a direct manufacturer that can turnkey an oilfield man camp on a prepared site in a matter of weeks.

As a commercial builder of prefabricated modular buildings, Palomar has experience constructing dormitories, laundry facilities, recreation halls, commercial kitchens, dining facilities and much more. These complexes can vary from smaller 20-50 person man camps to 500-1,000 person man camps. Palomar has experience working with oil field producers to customize facilities to meet their needs.

Burke Lodge -- New Man-Camp -- 110-Units -- Opens Today -- The Bakken, North Dakota, USA

About 2.5 miles north of Williston, at intersection of US Highway 2 and 56th Street Northwest.

Dickinson't Press Has A Great Editorial Regarding Recent Man-Camp Debacle -- Bakken, North Dakota, USA

A big "thank you" to CRC for alerting me to this story. I would have missed it.

Link here.

The loss of a 600-person man camp is millions of dollars in the past for the Dickinson area. This includes hundreds of dollars daily from nearly 600 men who would make many purchases of food, gas and any other personal needs, locally. The city also takes a hit on taxes.

Dickinson Planning and Zoning Commission members deserve credit for listening to those who came to a public hearing and voiced their dissatisfaction in the original plan for a location. However, residents need to keep in mind that many people contributing heavily to the number one economy in the nation (North Dakota) need somewhere to go after working long shifts on rigs and doing all that’s necessary to keep the oil flowing.

One commission member was right on when he said, no matter where a man camp is proposed, someone is going to be unhappy.

Dickinson has also turned away people that could become friends and neighbors and take part in this community.

Some of those friends and neighbors would have been the managers of the man-camp. A city does well to create a good feeling between the city residents and the managers of the city. Again, it's easier to police a man-camp inside one's jurisdiction than outside it.

The Dickinson't Press hit every high point; I'm impressed. I especially like the one about increased traffic on the road. All those folks in the Dunn man-camp are going to be driving eight miles down to Dickinson anyway.

I remember a couple of years ago Williston bent over backwards to help out all the workers coming to Williston, including letting them camp out in small one-man tents in local parks. The park board was very forgiving, and looked the other way. Local residents even brougth them homemade dinners.

Now, a completely different story.

Tonight I drove past a number of semis parked side-by-side just a few feet from a local restaurant. It appeared that the men were living in their trucks. Pretty sad. When you see a Weber grill behind a semi, it gives a whole new meaning to tailgate parties.

Belfield Approves Temporary Housing -- Bakken, North Dakota, USA

Link here.

The zoning board unanimously supported a two-year conditional use permit to allow up to 26 Nabors employees to stay in facilities that will be built as part of a company expansion project. The site is adjacent to Nabors existing yard located east of Belfield on Highway 10.
Employees would be permitted to stay at the facility for up to 90 days.

Watch for more and more such alternatives to the large man-camps. It's a win-win for everyone (except for more trucks on the road,): the guys have a place to stay, and the price is a lot better than they might pay to stay at a man-camp.

Good, Bad, or Indifferent: Dickinson Says "NO" to 600-Bed Man-Camp

Link here.

Dickinson Planning and Zoning Commission members unanimously opposed a request by Target Logistics for a man camp near State Avenue and 21st West this morning.

About 50 people attended the early-morning meeting at City Hall and about half a dozen residents spoke against the proposed 600-person man camp’s location. No one spoke in favor.

Another Man-Camp Approved -- Williams County -- Bakken, North Dakota, USA

Link here.

Approved: a 224-bed facility on acreage in the Bakken Industrial Park, to be built by Burke Remote Site LLC, based in Las Vegas.

First phase: two 56-bed units. Price / night -- $100/night (rounded).

ATCO Lodge -- Man-Camp -- Williston, North Dakota -- BEXP Wells -- North of Williston, North Dakota -- Bakken, North Dakota, USA

This is the ATCO man-camp just north of Wililston, North Dakota, on US Highway 2 & 85.  Just across the road, about two miles to the west are two very nice wells. I believe they are the BEXP wells:

• 19002, 2,130, BEXP, Smith Farm 23-14 1-H, spud 6/10; tested 10/10; 86K as of 6/11
• 19119, 3,425, BEXP, Heen 26-35 1-H, spud 7/10, tested 11/10; 106K as of 6/11

"God's country," as we like to say up there.

Big sky country, too.

2,500 Man-Camp Approved -- Near Tioga, Along Highway 2 -- Bakken, North Dakota, USA

This proposal was reported earlier; now it has been approved. This is simply huge: 2,500 man-camp.

Think about that for a moment: two thousand five hundred new men (mostly men, I assume) descending on a small village.

To put this in perspective, Minot Air Force Base has 4,536 active duty personnel with full support services to include commissary (grocery store), base exchange (department store), hospital, recreation centers (including an indoor swimming pool), etc.

Something tells me roads are going to be the least of the county's problems going forward. Hospitals, restaurants, night clubs, etc. will be severely impacted.

2,500 man camp on US Highway 2 between Tioga and Ray. This is in addition to all that is already there. Incredible. Maybe I'm being a bit overly concerned, but I truly can't get my mind around that many men moving into a man-camp. Just think of the traffic -- actually they will be moved from man-camp to work areas by bus, as much as possible.

Halliburton's Housing -- Photographs

Back on April 14, 2010, I posted a story about Halliburton moving some portable housing that was used at the Vancouver 2010 Winter Olympics down to their industrial park east of Williston.

I was finally able to take some photographs of the complex.

From the press release:

"...the complex will be placed at an industrial park in Williston, on about six acres of land that the company bought from the city for about $160,000.

The company said in a statement that the 158-bedroom camp would include kitchen, dining, recreation and office areas.

"The camp was used at this year's Winter Olympics in Vancouver, Canada, and will be demobilized and transported to Williston,'' the company's statement said."

If you click on the top picture and zoom in on the sign you will see that the name of this "lodge" is the Halliburton Muddy River Lodge.

If you zoom in on the bottom picture, you will see that these are "container modules" used to transport cargo on dry goods container ships, which can be transferred directly to tractor-trailers and hauled cross-country.

To put this in perspective, this lodge is apparently 158-beds, according to the press release.

In a story published yesterday, a developer will bring in 2,500 beds for a man-camp near Tioga. The project will be accomplished in four phases, each phase with 67 buildings. Each building will hold about 10 beds, if I did the math right. (4 x 67 = 268 buildings; 2,500/268 --> 9 beds, to be exact).