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

Turkey: No Ransom Paid for Release of Hostages Held by IS Militants

President Erdogan hails release of hostages as diplomatic success but declines to be drawn on whether their release freed Ankara's hand to take more active stance against insurgents More

Audio Sierra Leone Ends Ebola Lockdown

Health ministry says it has reached 75 percent of its target of visiting 1.5 million homes to locate infected, educate population about virus More

US Pivot to Asia Demands Delicate Balancing Act

As tumult in Middle East distracts Obama administration, efforts to shift American focus eastward appear threatened 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.
Saving Global Fish Stocks Starts in the Kitcheni
X
September 22, 2014 11:42 AM
With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Alibaba Shares Soar in First Day of Trading

China's biggest online retailer hit the market Friday -- with its share price soaring on the New York Stock Exchange. The shares were priced at $68, but trading stalled at the opening, as sellers held onto their shares, waiting for buyers to bid up the price. More on the world's biggest initial public offering from VOA’s Bernard Shusman in New York.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
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.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.