By Russell Gold
The Wall Street Journal
DICKINSON, N.D.—North Dakota officials have a challenge many states would love to face: figuring out how to manage big permanent investments such as roads and bridges for an energy boom that is drawing hordes of newcomers.
Millions of barrels of oil are rolling out of North Dakota each year and thousands of job-hungry Americans are rolling in, drawn to lucrative oil jobs. But the state faces a challenge: How much do you build when an oil boom may one day bust?
Already home to some of the fastest-growing towns in the country, according to Census Bureau estimates, the oil-rich western half of North Dakota is likely to experience a population jump of more than 50% over the next two decades, a state
study predicts. That works out to a rise of about 110,000 in a state that as of last year had just 684,000 residents.
The draw is high-paying jobs, and lots of them—last year, workers in the state’s energy industry made $91,400 on average, more than double the state average of $41,800. And with a state unemployment rate of just 3.1% there is much demand for more workers.
Behind the boom is the extraction of vast amounts of oil from the rock formation called the Bakken Shale, made possible by the drilling technique known as hydraulic fracturing, or fracking.
The drilling has created tremendous demand for new roads and housing, law enforcement and sewer lines as oil workers have flooded into North Dakota. The state expects demand for electricity to double by 2017.
but energy booms seldom proceed on a smooth path; they tend to wax and wane as crude prices rise and fall.
Also: Energy Journal: U.S. May Already Be World’s Top Oil Producer
