By Louise Taylor
- North Dakota adds 100,000 workers since 2009 (Pew Research Center)
- Oil production to last until 2100 and beyond (North Dakota Department of Mineral Resources)
- US to remain world’s top oil producer until at least 2030 (IEA)
The US is now officially the world’s biggest producer of oil and natural gas liquids, according to the International Energy Agency’s announcement in June. Francisco Blanch, head of commodities research at Bank of America Corp. comments in relation to the news,
“The US increase in supply is a very meaningful chunk of oil… The shale boom is playing a key role in the US recovery. If the US didn’t have this energy supply, prices at the pump would be completely unaffordable.”
US output is set to continue increasing until 2019, when it should reach some 13.1 million barrels a day, according to the IEA. At that point the prediction is that US production will plateau, eventually losing its top global producer rank in the early 2030s.
In North Dakota, where fracking has dramatically turned around the state’s fortune over the past few years, the North Dakota Industrial Commission is also positive in its long-term projections.
“Your grandchildren’s children will be sitting in these chairs,” claims Lynn Helms, director of the North Dakota Department of Mineral Resources. The situation is a far cry from the North Dakota that was losing its young in a steady stream to the job opportunities of other states at the start of this century. Now, North Dakota’s youngsters have a bright future ahead of them – all thanks to ‘King Oil.’
Already the state’s population has increased by 12% in just five years according to Census data, with the Pew Research Center reporting that the state has added around 100,000 workers since 2009.
Oil production in North Dakota’s Bakken region is predicted to last until 2100 and beyond, according to the latest thinking from the North Dakota Department of Mineral Resources, while advances in extraction technology over the years ahead could make the long-term picture even more positive. An efficiency increase of just 1% in extraction processes, for example, would produce at least another 1 billion barrels of oil, according to oilfield geologist Kathy Neset.
North Dakota has been ruled by its agricultural production throughout the state’s history, but now oil has taken over the top spot, according to figures from the US Bureau of Economic Analysis, which measures gross domestic product and activity by state.
Robert Gavin, Group CEO of the award-winning North Dakota Developments, comments,
“The oil play in North Dakota has generated some amazing opportunities already and it is fantastic to know that it is set to continue so far into the future. North Dakota Developments is already undertaking groundwork on its fantastic new Transhudson Hotel, Parshall, to house oil workers in the area, and it’s wonderful to think that their children and their children’s children are likely to end up staying in the hotel as the oil play continues over the decades ahead.”
Investment in the Transhudson Hotel, Parshall is available from just $84,950, with current discounts of $20,000 included for early purchases (regular suite price: $104,950). The hotel offers assured net yields of 16.5% per year, with compulsory buy back after the third year for the purchase price plus 10%, generating a total net return on investment of 59.5%.
For more information on the award-winning North Dakota Developments and their exciting new Transhudson Hotel Parshall in the Bakken oilfields of North Dakota, call +44 (0) 845 053 7498, email [email protected] or visitwww.northdakotadevelopments.com.