News / Economy

Oil Wealth Attracts Businesses to North Dakota

Oil Wealth Attracts Businesses to North Dakotai
X
Kane Farabaugh
August 16, 2014 1:53 AM
The state of North Dakota has one of the lowest unemployment rates in the country, thanks to a glut of jobs created by the oil boom in the western part of the state, which rests on one of the largest shale oil deposits in the country. As VOA’s Kane Farabaugh reports from Williston, North Dakota, the job market keeps growing as more businesses relocate to North Dakota, attracted by the promise of profits -- but not without challenges.
Kane Farabaugh

The state of North Dakota has one of the lowest unemployment rates in the country, thanks to a glut of jobs created by the oil boom in the western part of the state, which rests on one of the largest shale oil deposits in the country. The job market keeps growing as more businesses relocate to North Dakota, attracted by the promise of profits -- but not without challenges.

The once-sleepy town of Williston, North Dakota, is now a booming hub of business, thanks to new ways to extract oil from shale deposits in the region. And everyone wants a piece of the action.

“Williston right now is the fastest growing micropolitan in the nation -- that’s cities under 50,000,” said Shawn Wenko, the Assistant Director of the Williston Economic Development Office. He admitted his organization -- and the state of the North Dakota -- are having a hard time keeping up with the number of people and businesses pouring in to the region.

“You just see the construction that is going vertical is phenomenal. We’ve done over $1.2 billion in permit valuations in the last year in the city of Williston,” he said.

Manufacturing muscle

Vactor Manufacturing received one of those permits. The Illinois-based business makes large industrial vacuum systems mounted on trucks.

Typically used by municipalities as way to clear out sewers and storm drains, Vactor’s equipment also can be used at oil rigs and storage tanks -- increasing the demand for its products in North Dakota’s oil fields.

General Manager Sam Miceli said his company recently built a service center in Williston to maintain the trucks and equipment they’ve been selling to companies in the oil fields. “There’s probably 25-plus competitors in the marketplace, and all of them are trying to get into North Dakota.”

“Being able to support that piece of equipment, it’s a harsh environment, it’s a highly demanding market, so when a machine goes down or they need a spare part, they need it now,” said Miceli. “I’ve never been in a place where money is no option. If you have it, I’ll pay for it.  Which is a real interesting prospect for a manufacturer. So our challenge is figuring out how to get more of it out there.”

He said one of the biggest challenges, though, has been recruiting and retaining service center employees.

“You not only have to pay well, but you have to provide housing and you have to provide incentives to keep those guys on your job,” said Miceli.

Challenges appear

Because of higher rates of pay for many jobs, North Dakota leads the nation in net migration. The state’s economy has grown five times faster than the national average over the last several years -- and the western part of North Dakota is expected to see a 50 percent population expansion over the next several decades as more companies try to cash in on the oil boom.

Which is why Shawn Wenko said Williston is planning for the long term. “We’re going to put $258 million into our roads. We’re looking at upgrading our waste-water treatment facility, upgrading our airport, upgrading our landfill, upgrading city government buildings, fire halls, police stations, everything that makes a city go round.”

That should help deal with two other factors that are growing -- the need for social services, and the crime rate.

 

You May Like

Scotland Vote Raises Questions of International Law

Experts say self-determination, as defined and protected by international law, confined narrowly to independence movements in process of de-colonization More

Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

Conservationists hail ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015 More

Annual Military Exercise Takes on New Meaning for Ukraine Troops

Troops from 15 nations participating in annual event, 'Rapid Trident' in western Ukraine More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Russian Economy Reeling After New Western Sanctionsi
X
September 18, 2014 2:28 AM
A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7718
JPY
USD
107.32
GBP
USD
0.6125
CAD
USD
1.0974
INR
USD
60.919

Rates may not be current.