The oil boom and bring good things to an area experiencing this type of economic growth. However, with every good thing, comes some negatives. What are they and how are the effecting the oil industry? Brian Shactman explains how North Dakota has seen negative effects of the oil boom.
Since the story began with the oil business and jobs, let’s start there. North Dakota still has the lowest unemployment rate of any state in the Union, but with a national media onslaught in the last six months, it’s no longer a secret.
The supply-demand jobs equation has changed. No longer can someone simply get off a bus and get a job. In addition, even with a job, there’s probably nowhere to sleep one night, let alone live.
Builders are feverishly trying to increase capacity, but right now, there is almost no vacancy. And prices reflect this.
In 2005, the average rent for a one-bedroom apartment in Willison, North Dakota?
Less than $500. Today? More than $2,000 … if you can even find one.
People have seen the news stories of North Dakota as a job-seeker’s oasis, and are so desperate for work, they pack up and come to N. Dakota — sometimes with a suitcase, a jacket … and no plan.
If no job or place to live materializes, the N. Dakota winter becomes a major problem — a major health problem.
There’s been a growing fear of people literally dying in their cars.
“Not only in their cars, just from freezing, but there are also a lot of campers,” Koeser pointed out. “People are living in anything they can live in, and they’re not designed for wintertime living.”
Right now, places like Williston don’t even have shelters.
This is something to keep in mind when thinking about the economy and the oil business in general. Everything has its pros and cons, and the oil industry is no different.
Quotes taken from report by Brian Shactman, Read the entire article here.
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