Observations in the Bakken -- Housing -- Sunday, September 04, 2011 -- Bakken, North Dakota, USA

See first post on my initial observations in the Bakken, summer, 2011. This continues my observations.

First, this is the best time of the year in western North Dakota. The weather is wonderful; if the US Air Force has sprayed the mosquitoes larvae,  it's great to be outside.

Second, the number one story remains affordable housing. After lots of driving around, specifically looking at all the construction that is going on, I am convinced that the housing situation will be resolved by the end of 2013. If the housing situation remains a problem after 2013, folks have seriously underestimated how huge the Bakken is going to be.

Before the boom, there were probably about 3,000 houses in Williston. The Kiewit subdivision alone will add about 2,000 more units, if completed. There are probably another several hundred or so units that have gone up in the last year or so (apartment units, duplexes, single family homes, etc). Again, these are just wild estimations. My hunch is that the vast majority of young men living in the man-camps will elect not to buy homes here in Williston; they will work here, but return to their own home elsewhere outside of North Dakota. I would not be a bit surprised if there is actually a slight excess of single family homes in 2014 based on the pace at which they are building now.

Third, it will be interesting to see if oil companies decide to frack during the winter or postpone until the spring. Even under the best of circumstances, the numbers suggest that fracking cannot keep up with drilling for the next six to twelve months. If oil companies do not frack during the winter, the backlog in the spring will be significant.

NY Times: US Post Office Could Shut Down Later This Year -- Not a Bakken Story

Link here.

According to the New York Times: decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.

But let's just blame it on the Internet revolution, which by the way, was invented by Al Gore, according to Al Gore.

And the US Postal Service needs to be fully funded: certainly one can argue that the US Postal Service is central to America's Homeland Security.

California Employment Hits a Record Low -- Not Likely To Recover For Several Years -- Not a Bakken Story

Link here.

Every paragraph in the linked story is bad, bad news.

The percentage of working-age Californians with jobs has fallen to a record low, and employment may not return to pre-recession levels until the second half of the decade, according to a research group.

Just 55.4 percent of working-age Californians, defined as those 16 or older, had a job in July, down from 56.2 percent a year earlier and the lowest level since 1976.

California’s 12 percent unemployment rate in July, the nation’s second-highest after Nevada, compared with 9.1 percent nationwide.

Women have disproportionately trailed men in regaining jobs.

“Women represent nearly half of the workforce,” Anderson said in a telephone interview. “They gained just one of the 10 jobs added.” 

I won't even begin to comment. 

Oil Well Explosion - Fire Near Sidney, Montana -- No Injuries

Link here.

This is the entire story:

An explosion and fire occurred at an oil site east of Sidney at around 8:30 a.m. Sunday. Unofficial reports say there were no injuries. Sidney firefighters responded to the call and are at the site controlling the fire.

Updates if I get them.

Random Photos of Two BEXP Wells West of Williston -- Just Outside City Limits -- Bakken, North Dakota, USA

 

The top well picture:

NDIC File No: 19584     API No: 33-105-01971-00-00     CTB No: 119584

Well Type: OG     Well Status: A     Status Date: 5/20/2011     Wellbore type: Horizontal
Location: SWSE 8-154-101     Footages: 250 FSL 2395 FEL     Latitude: 48.169396     Longitude: -103.699823
Current Operator: BRIGHAM OIL & GAS, L.P.
Current Well Name: DAVE ARNSON 8-5 1-H
Elevation(s): 2040 KB   2014 GR   2014 GL     Total Depth: 20300     Field: TODD
Spud Date(s):  1/6/2011
Casing String(s): 9.625" 1940'   7" 10972'  
Completion Data
   Pool: BAKKEN     Perfs: 10972-20300     Comp: 5/20/2011     Status: F     Date: 5/24/2011     Spacing: 2SEC
Cumulative Production Data
   Pool: BAKKEN     Cum Oil: 40278     Cum MCF Gas: 20473     Cum Water: 37502
Production Test Data
   IP Test Date: 5/24/2011     Pool: BAKKEN     IP Oil: 2192     IP MCF: 1629     IP Water: 4570

The second well: 

NDIC File No: 19829     API No: 33-105-02016-00-00     CTB No: 119829

Well Type: OG     Well Status: A     Status Date: 5/25/2011     Wellbore type: Horizontal
Location: SWSE 8-154-101     Footages: 250 FSL 2375 FEL     Latitude: 48.169396     Longitude: -103.699741
Current Operator: BRIGHAM OIL & GAS, L.P.
Current Well Name: O'NEILL 17-20 1-H
Elevation(s): 2040 KB   2014 GR   2014 GL     Total Depth: 20855     Field: TODD
Spud Date(s):  2/3/2011
Casing String(s): 9.625" 1997'   7" 10883'  
Completion Data
   Pool: BAKKEN     Perfs: 10883-20855     Comp: 5/26/2011     Status: F     Date: 5/29/2011     Spacing: 2SEC
Cumulative Production Data
   Pool: BAKKEN     Cum Oil: 41988     Cum MCF Gas: 19762     Cum Water: 41396
Production Test Data
   IP Test Date: 5/29/2011     Pool: BAKKEN     IP Oil: 2965     IP MCF: 2303     IP Water: 3732