5 ms·

I'm concerned what will happen when they run out of wells to drill. The area has seen an oil boom before, but nothing like this. 5 years ago the town of Stanl

by LargeWu 15y ago

I'm concerned what will happen when they run out of wells to drill. The area has seen an oil boom before, but nothing like this. 5 years ago the town of Stanley had about 1,500 residents. Today it has over 10,000, many of those in temporary housing. Williston has put a moratorium on any further expansion because they simply can't handle any more people. There's a lot of jobs and money around, but it's a mixed blessing for sure. When the oil dries up, and it will someday, a lot of these towns are going to get hit really hard.

protomyth 15y ago
People will move on and hopefully the cities will bank the money. Farming will go back to its #1 position. If they conserve their cash, the towns will be fine. If they spend like a drunken sailor, or worse, borrow heavy, then there will be problems.
- _delirium 15y ago
  I'm not sure the towns will be fine even if they conserve their cash. When the oil jobs decline, there will be no reason for that many people to live there, so the population will likely decline precipitously (as with any boom town), which tends to produce social problems and a general feeling of malaise (not to mention abandoned buildings).
  - protomyth 15y ago
    It's the second time around for most of these towns and there is another industry. A lot of the people will move on, but I think the folks in that area are pretty resilient. That all said, it will probably be a number of years before it goes away.
- stinkytaco 15y ago
  Except as they add infrastructure and upgrade existing roads, utilities, etc, they also add long term upkeep costs. When the oil goes away and people leave you're left with roads and sewers to maintain, people to lay off at Wal-Mart and McDonalds and lots of empty housing to depress real estate prices. That's why boom cycles seem so often to be followed by serious bust, because boom creates long term costs.

by LargeWu 15y ago

protomyth 15y ago

People will move on and hopefully the cities will bank the money. Farming will go back to its #1 position. If they conserve their cash, the towns will be fine. If they spend like a drunken sailor, or worse, borrow heavy, then there will be problems.

_delirium 15y ago
I'm not sure the towns will be fine even if they conserve their cash. When the oil jobs decline, there will be no reason for that many people to live there, so the population will likely decline precipitously (as with any boom town), which tends to produce social problems and a general feeling of malaise (not to mention abandoned buildings).
- protomyth 15y ago
  It's the second time around for most of these towns and there is another industry. A lot of the people will move on, but I think the folks in that area are pretty resilient. That all said, it will probably be a number of years before it goes away.
stinkytaco 15y ago
Except as they add infrastructure and upgrade existing roads, utilities, etc, they also add long term upkeep costs. When the oil goes away and people leave you're left with roads and sewers to maintain, people to lay off at Wal-Mart and McDonalds and lots of empty housing to depress real estate prices. That's why boom cycles seem so often to be followed by serious bust, because boom creates long term costs.