Primarily Petroliana Shop Talk Forums Shop Talk Petroliana Forums General Petroliana Discussion N.Dakota Oil BOOM is Over

Well that didn't take long.
Seems like just yesterday,every Tom,Dick & Harry was selling their house,flipping off their village officials and packing up the car for N.Dakota.
http://www.valleynewslive.com/home/headl...-364071411.html

It's not completely over, it is just really slowed down here. There is still activity in the western part of the state. I live in Bismarck and you can tell that there is a difference in the traffic but you still see oilfield trucks around town.

IMO Just the oil industry settling down to a normal production for the barrel price as it has done before. Just new to N. Dakota

all caused by OPEC not reducing production in an attempt to keep oil price low enough, which in turn causes US fracking to be too costly and results in more need for OPEC. it's the shale revolution.

meanwhile, employers such as mine (CAT) feel the heartache of both worlds... a struggling global economy and a reduction in fracking rigs

I think the EPA is trying to stop fracking because it can leak into aquifers. That might be true for the eastern part of the country but not in ND. We are drilling thousands of feet if not miles in certain areas to get to the oil in order to frac.

Easy fix to this problem, ban or tariff the imported oil so we use OURS, not theirs! I had one Canadian collector who was in the oil business tell me that the big American oil companies were joining OPEC in trying to squeeze out the little guys. He said big oil is also taking advantage of cheaper labor and drilling like crazy and capping the wells until oil goes back up....

What people don't understand is that every boom has a bust, I don't care what business sector you have. The luxury of this last boom is that it lasted for over 10 years!! That's a long time in oil industry, and it would still be going if not for the low oil prices. I've been thru many busts in the oilfield of North Dakota. But I can guarantee it will be back!! Oil price and technology drive this industry.

There's very few oil companies that are drilling in ND that can afford to drill and not frac for very long, it's cheaper to drill here now but still 2-3 million per well.

According to most insiders within two years barring any major economic disturbance the price of oil will have rebounded. Also given all of the uncertainty in the Middle East all it will take is one crisis and you will be seeing oil sky rocket. The fact of the matter is until Detroit starts building a mass produced and affordable alternative oil will still be king.

It continues,the Barrel fell to $30 today.
Prices not this low since 2003.
http://money.cnn.com/2016/01/12/investing/oil-prices-below-30/