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What's happening with the oil boom coming....

By
Real Estate Agent with Preferred Minot Real Estate
I don't know! Do YOU know? We hear things.... this person knows one thing, someone else knows something else or they think they know. Then there are the people who really do know something and they aren't doing much talking. (funny how that works, isn't it?) What we expect is that housing prices will edge up over the coming months as more people are finding their way to North Dakota to work in the Oil industry. Oil leases are big business now. Every register of deeds in the vicinity of where the Bakken is located have increased activity and that has been occurring for some time. Who all will be here? I'm hearing some names, picking up some website comments, various remarks concerning relocation of rigs, etc. My son who attended a meeting of the mining industry in Alaska, (which includes oil) spoke directly with an owner of numerous rigs that had been hoping that Anwar would open up, but now is pulling every rig and heading for North Dakota. We are starting to see "info" coming through our local newspaper and I will share a portion of that. In order to read the whole article you will have to go to their website. The following is a section from an article in the Minot Daily News: MAGIC Fund asked to help position Minot for oil development By JILL SCHRAMM, Staff Writer "An oil-field service company is requesting $600,000 in start-up help from the Minot MAGIC Fund to establish an operation in Minot that could employ at least 80 people. The company is looking to locate in an energy park that the Minot Area Development Corp. hopes to develop east of the agricultural park, also with help from the MAGIC Fund. The MAGIC Fund Committee meets Friday to take up MADC’s request for a $1.1 million grant to build out water, sewer, curb and gutter, pavement and lighting for the new Minot Energy Park. It also will consider the $600,000 request from Pure Energy Services of Calgary, Alberta, Canada. Pure Energy hopes to expand into Minot’s proposed energy park this year. The company already has operations in the United States. It entered the U.S. market in 2004 with facilities in Colorado and Wyoming." If you are thinking of selling and buying in this market, there is no better time than now. True, the price you receive for your house will be less, but the price you pay for another will be less also. In actuality, if you are selling and buying in the same market, it all balances out. If you wait and the prices leap, then you receive more for your house, but when you buy, you are going to be spending more. If you are planning to move out of the area, You may be able to time your move to when the market is rising. It is important to remember not to be "greedy" because it usually ends up with a house overpriced and not moving. A market Analysis will tell you "about" what your property is worth. There is NO CHARGE for a Market Analysis. All I ask is that when you are ready to sell you call me first to discuss the marketing and sale of it.
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
This is the first we have heard about oil and North Dakota. All the best as your market evolves and changes.
Mar 26, 2008 04:40 AM
Lloyd Ann Caston
Preferred Minot Real Estate - Minot, ND

Hi Bob and Carolin...Thanks for the response.  We are hearing that is Bakken Formation as it is referred to is larger than Anwar (Wildlife preserve in Alaska, where all the oil is).    This oil is in Shale and they are trying to find ways to "shake" it out, supposedly.  From what I hear they are currently drilling 2 miles down, and then go horizontal from there.  The technique is so fine tuned that they could put this drill bit in a 5 gallon pail 3 or more miles away.  It is truly intriguing. 

Our Area has a number of "snowbirds" that head for Phoenix and the surrounding area every winter.  Then when spring comes they arrive home.  It's too cold here in the winter, and too hot there, in the summer.  They get the best of all possible worlds!  I seem to work in the Winter, and I can tell you there is nothing as cold as a lockbox when it's 20 below zero and the wind is blowing.  LOL

Thanks for posting to my blog.  This is beginning to look like a lot of fun.....hopefully it won't be so much fun that I don't get my work done!  LOL

Mar 26, 2008 05:34 AM
Debbie Durkee
National Land Realty - Tulsa, OK
ALC, CRS -- Land & Country Estates near Tulsa

There is a nice article about the Bakken and its impact on North Dakota in the most recent issue of the Midwest edition of Farm & Ranch Magazine.  You can see it online by going to http://FarmandRanch.com ad then clicking on the Midwest edition of the magazine.

Prices for oil leases in Oklahoma have leveled off this summer according to a recent  article in Landman 2.  It is still pretty exciting here.  Our economy in Tulsa is so tied to oil even though the oil capital of the world is now Houston..... People here don't realize how much work there is around here tied to the oil industry.  There are lots of little manufacturing outfits all over town.  Plus, there are a lot of young men finding jobs in the oil patch.  I feel a blog coming on....

Sep 07, 2008 02:36 PM