Sheridan County Times

Guest Post

by Willard "Woody" Michels

When I hear these statements several things come to mind. The most dominant one is the recent oil boom in NW North Dakota and NE Montana. This so-called oil boom started quite innocently in Richland County near Sidney, Montana adjacent to the North Dakota border. Around 2003 oil was discovered here in abundant supplies quite shallow around 7,000 feet deep, until then most area wells were near the 10,000-foot level. The problem being this shallow oil was in a shale layer of rock and slow to percolate into the casing which enables pumping. Horizontal drilling, which was fairly new, was used to drill into this shale. Even when the hole was cased still not much oil was pump-able even though oil was there. I think it was a couple of brothers in Texas that discovered a technique of punching holes in the horizontal casing and fracking the shale layer under extremely high hydraulic pressure forcing sand and chemicals into the shale causing channels for the oil to flow into the casing for pumping. By 2007 the fracking technique was being perfected and by 2010 the boom was on.

Most residents there were quite optimistic about such a development. It would mean high-paying jobs, a general economic boom, and quick riches. These observations were a reality only for some. At one point a millionaire was being created every day in North Dakota. The problem being, many of these overnight millionaires were oil speculators who had acquired mineral rights and numerous mineral owners were absentee owners living in faraway places who inherited these rights as the land was bought and sold over the years.

The surface or landowner who did not own these rights benefited little if any as they only got an ugly oil well and site to farm around. Anytime there is a well, a road is needed further scaring the landscape and remember roads take gravel which means a gravel pit, another scar.

Many of the high paying jobs were taken by out of state people that came in tidal waves to drive trucks, operate machinery, build roads, and work the oil drilling rigs. Many of the drivers came from southern states and had never driven cars on iced or snow-covered roads much less a large semi-truck. You can imagine the outcome. A case in point is a large memorial of the school mascot in front of our local school dedicated to a young gal from our home town. This young lady was stopped at a stoplight near Minot ND when an out-of-state truck driver literally drove his dump truck over her car. Even though he’s doing time for manslaughter, this is a small price to pay for a beautiful young life. She definitely won’t benefit from the boom.

Numerous workers coming from southern states had no idea how severe winter could be in North Dakota and Montana. Walmart and any store selling winter clothing were soon sold out leaving some workers wanting warm clothes. The most lasting effect was housing for workers all these new jobs created. Man camps sprung up all over the landscape. Everything imaginable resembling housing was brought in. Mobile homes large and small, campers, modular motels, pods for sleeping were hooked together to create camps so numerous local governments had to put limits on how many could be created. They all had to have sewers, electricity, and water. Not to mention feeding these people, convincing stores with sandwich facilities to run at capacity 24-7. Drugs, prostitution, and general lawlessness overwhelmed local law enforcement.

In 2020 the price of oil has fallen from a high of $150 per barrel to $30 per barrel. The landscape is now covered with abandoned camps and oil well sites. Several small oil companies that have gone bankrupt owned these abandoned sites and the state is now responsible for clean up and reclamation of these sites. Numerous small towns that had utilities available now have empty park models and small mobile homes sitting unoccupied. This author has first-hand knowledge of these empty homes as he owns some.

Much was gained from this oil boom. The state treasuries of Montana and North Dakota benefited. Many local people profited and several businesses were built and much of this prosperity is still obvious. But as with any boom, versus a gradual expansion, there are lasting problems and consequences that still have to be dealt with for years to come.

Be careful what you wish for, especially booms, as they may not be what you expected.