Skip to comments.ND oil output continues rise, 639K barrels in May
Posted on 07/11/2012 4:54:27 AM PDT by thackney
Even though oil prices have been falling, North Dakotas oil production continues to rise.
The state Department of Mineral Resources reports on Tuesday that North Dakota oil producers pumped an average of 639,000 barrels of oil each day in May.
That adds up to almost 20 million barrels of oil for the month.
(Excerpt) Read more at fuelfix.com ...
Manufacturers Directory Reports North Dakota Industrial Jobs Jump 15%
Industrial employment in North Dakota shot up 15.8% over the past twelve months according to the 2013 North Dakota Manufacturers Register, an industrial directory published annually by Manufacturers’ News, Inc. (MNI) Evanston, IL.
MNI reports North Dakota gained 5,899 industrial jobs between May 2011 and May 2012, with employment in the oil and gas extraction sector more than doubling in response to the Bakken Shale oil boom.
Manufacturers’ News reports North Dakota is now home to 1,237 manufacturers employing 43,154 workers.
“For many years North Dakota has maintained a winning combination of abundant natural resources, low business costs, and an educated workforce,” says Tom Dubin, President of the Evanston, IL-based publishing company, which has been surveying industry since 1912. “And now the Bakken Shale boom has boosted North Dakota from the fourth largest oil producing state a year ago to the second largest, and employment has risen accordingly.”
Apart from the oil and gas employment gains, bright spots were also seen in other sectors, with Ultra Green announcing plans to open a wheat straw fiber plant in Devils Lake, and Bobcat announcing an expansion of its Manufacturing Support Center in Bismarck. Advanced Drainage Systems announced an expansion at its newly-opened plant in Buxton; Prinsco Inc. plans a new pipe manufacturing facility in Fargo; and Cargill announced plans to rebuild and expand its West Fargo oilseed processing facility.
MNI reports North Dakota’s largest industrial sectors by employment all posted gains over the past year. Industrial machinery and equipment remains the state’s largest industrial sector by employment, with 8,447 of the state’s jobs, up 21% over the year. Oil and gas extraction now ranks second in the state with 7,011 industrial jobs, an increase of 4,474 jobs over last year. Food products manufacturing ranks third with 5,506 industrial jobs, up 2.4%.
Other sectors that gained jobs included textiles/apparel, up 11.5%; fabricated metals up 8.2%; transportation equipment, up 5.6%; stone/clay/glass, up 4.8%; and petroleum/coal products, up 2.6%. Employment remained steady in lumber/wood and paper products, while losses were seen in rubber/plastics, down 12.9%; printing/publishing, down 3.1%; chemicals, down 3% and electronics, down 1.1%. Industrial locations closing down included a Global Electric Motorcar plant in Fargo; ADM’s ethanol plant in Walhalla; a Cloverdale Foods facility in Minot; and Parker Hannifin’s Valley City plant.
MNI reports the Southeast region of North Dakota accounts for the most industrial employment, with 21,648 industrial jobs, up 4.2% over the year. The Northwest accounts for 9,657, up 76% over the past year. The Southwest is home to 6,264, up 19.7%, while The Northeast region is home to 5,585 industrial workers, down 3.2% over the past twelve months.
MNI reports manufacturing employment in North Dakota’s largest industrial cities either saw increases or remained unchanged over the year. Fargo remains the state’s top city by manufacturing employment, accounting for 9,754 jobs, with no significant change reported over the past twelve months. Williston now ranks second in the state for number of industrial employment, with 6,028 jobs, an increase of 3,446 jobs from a year ago. Third-ranked Grand Forks accounts for 2,709 industrial jobs, virtually unchanged from a year ago. West Fargo accounts for 2,612 jobs, up 32%, while Dickinson accounts for 2,680 industrial jobs, up 43%.
(Kinda like the granting of amnesty for "undocumented democrats")
I beg you to please read the following:
By Alan Caruba
Imagine if more states followed ND. Time to tell the feds that states have rights and drill, baby, drill. There is no reason for our economy to be so depressed other than the federal government making sure it is.
Did you post to the wrong thread? That is completely unrelated to this topic.
WTF? How stupid is this author?
The oil prices are falling BECAUSE oil production is rising
It is simple supply and demand
As oil become more plentiful price drops, and this make you produce more so that you can make the same money and the circle goes round and round until equilibrium is reached...
Market forces drive prices down this way
Don't they teach economics in journalism school? Or do they just learn propoaganda techniques? (no need to know anything about anything, for that)
The MUSLIMS spent a lot of money to get our FIRST MUSLIM PRESIDENT in office.
One of Obama’s biggest goals is to keep American $$ flowing to Arab states. This does two things:
1. Finances these leaches known as Muslims
2. Destroys the United States as our wealth flows out of the country.
This North Dakota thing has to stop. Between it and Natural Gas, this could make America energy independent. Obama and his group of traitors must shut it down.
Industries do NOT produce more because price drops. It cost significant money to drill an well.
Just as the drilling has greatly fallen in Natural Gas due to the price drops, it will eventually happen in oil if the price continues to fall and drops deep enough.
Everyone I know who works around oil from here in Alaska are grabbing their motorhomes or travel trailers and are heading to ND, and are making obscene wages.
Literally working just a month or two and having a years income. I would do it myself possibly. seriously I might, I have a travel trailer, the tow vehicle.
No doubt I did. I’m sorry.
I was at my computer this a.m. waiting for the veterinarian to get to my home at 5:30 a.m. Time was closing in and found myself in a panic to try and hurry up to get the article out before his arrival.
Thank you for calling my attention to it.
I hope you read it anyway.
Well, can someone explain to me why the price of gas around here just went UP today.
Sure they do. You make less per unit so you try to sell more units. But that is not the only way they react to the market changes.
You try to decrease your costs when price you can sell for goes down, by many possible ways, and/or you increase sales volume.
ONE of these ways is increasing volume output.
I am not saying it is the only way, only one of the possible ways of a continuing effort to maximize profits, which is a good thing in Capitalism.
You have the supply and demand curve backwards. If my business starts producing less return on the dollars invested, I don't invest more in the situation. I either try to change something or look for another way to make money. I don't try to follow a loosing game.
How do equate your statement with Natural Gas drilling falling greatly with the falling gas prices?
I've worked the oil/gas industry for decades. When prices drop, we slow down drilling and have less jobs. You are claiming the opposite of reality.
What are you unable to understand here?
If I sell 10 units and make a buck apiece, then the price drops and I only make a half a buck apiece I can shut down... or try to sell 20 units.
Or I lower my costs of prodiuction, so I make a buck apiece again.
I think you are the one who has it backwards.
The natural gas prices are dropping dramatically BECAUSE of all the new drilling. The cost to build more wells is already in there, you might not want to build more NOW, there is already a good supply being produced. Unless you can sell more and make up the profit.
There is greater supply, so the price goes down, and then there is no need to OVERSupply a market, that would be stupid.
They ARE selling more of it because of the lower prices, and an equilibrium will be reached. Notice there are more talks about natural gas vehicles and power plants now (since prices are so low), and that would then increase demand.
Your thinking is too linear- it is not a zero-sum game.
You have to think of the economy as something with it’s own feedback loops- a ‘governor’ of sorts (like on an engine, not like a politician)
If you make less on a unit you CAN stop production because it is not worth it, but that is only one option, and by no means the ONLY option.
You can try to become more efficiernt. This is how competition feedback improves products, always.
You can sell more volume. This also improves production techniques. Mass producing introduces lower cost- until you reach an equilibrium.
Read up on “Economies of scale” it explains exactly this phenomenon. It explains why steel plants are so massive and why mom-and-pop stores are so small.
I hope you can see there is more than just shutting down as an option, that is my only disagreement with what you are saying
If those units cost $9 to make, instead of spending 9 to make 1 profit, now you want to spend 18 to make 1?
The natural gas prices are dropping dramatically BECAUSE of all the new drilling.
Yes, because of the vast amount of drilling THAT ALREADY TOOK PLACE.
Now drill rigs that were drilling for gas 2~4 years ago are chasing oil. The number of drill rigs pursuing Natural Gas has falling since late 2008.
I try not to insult people but you really need a better understanding of Supply and Demand curves. When price goes down, less is supplied, more is in demand. When the price goes up, more is produced, less is in demand.
Or I lower my costs of prodiuction, so I make a buck apiece again.
If you could lower your cost of production, why not do that before when you had a greater cash flow to fund the improvements? Now that you have less money coming in, you think business owners have MORE money to invest in improvements?
Economics Basics: Demand and Supply
I hope this doesn’t seem like badgering, I don’t mean to do that.
May I suggest you may also be confusing the capabilities which may exist within a single company, versus the total output of the entire industry.
I see your point, and that is also part of the evolution- companies get put out of business even in a healthy competitive environment
you commit to one manner of production, and invest a lot of time and moeny, and another process comes along that is better and cheaper- well you can either fold or (if you are a democrat) ask for a government bailout
Sometimes the government is the SOURCE of this competition.
In NY the state offerred a company a tax break on his hius land and business to build a factory. Then the politicians announce how wonderful they were to ‘create’ 300 new jobs in the area this way. Well an existing company in the same area withouth these government tax breaks could no longer competer becuase the other company had only 85% of his costs... so he went out of business and 500 jobs were lost.
Net result: net loss of 150 jobs, but a new company donor for the politicians who organized this scheme
It is easy for a politician to raise money like this- fins a local business that makes a sucessful product, offer a competitor tax breask to come into town, drive the first company out of business and then collect campaign donations.
Son in ND says work has been VERY slow lately. Some crews are leaving, some companies shutting offices. It doesn’t mean the oil is going, just that the demand has dropped, possibly because of recession. People just aren’t driving as much as before. Thanks, BO.
Keystone XL pipeline would have helped move oil from ND to refineries as well as oil from Canada.
People just arent driving as much as before.
While total demand is down, we still import more oil from other nations than we produce ourselves. We have demand for more domestic oil, but our infrastructure is still lagging behind.