In exploring the hidden sides of the western shale oil and gas boom, the Rural West Initiative has looked at the impact of energy extraction on communities in North Dakota and Wyoming: on housing and infrastructure, strains on health care, disruption of local banks and the importance of refining state fiscal policies.
With our video feature "The New Western Fugitives," we now turn our focus on a side effect of gas extraction that is literally invisible: the build-up of “fugitive” emissions that contribute to high levels of ozone gas.
Last modified Thu, 2 Apr, 2015 at 13:31
The emergency room at Mercy Hospital in Williston, North Dakota
The Bakken oil boom in western North Dakota has put a tremendous strain on the rural region’s small hospitals. A declining, older population and a rapidly expanding younger, uninsured population; a major overload on emergency facilities, accompanied by skyrocketing bad debt; nurse and staff recruitment has become much more difficult due to high housing prices and high competitive wages in the oil patch; and physician recruitment, always a problem for rural areas, has gotten worse as needs soar.
By John McChesney
I met Randall Pederson, right, in his cramped office. As I start my interview, he yawns. He’s sitting behind a desk piled high with papers surrounded by shelves, and also piled high with papers. Pederson is President and CEO of the Tioga Medical Center, a 25-bed hospital in the town of Tioga, population around 2,000, although Pederson says it’s anybody’s guess how many people live here now. Several towns have more than doubled in size in the last couple of years. Pederson not only runs this hospital; he also serves on the town’s volunteer ambulance squad. Thus, the yawn. The squad is now making a lot more runs in the middle of the night. “They say New York City never sleeps,” Pederson says. “Well, I don’t know if western North Dakota ever sleeps.”
Like many small town hospitals around here, the Tioga Medical Center has seen a dramatic leap in ambulance runs and emergency room patients. “In 2007 we would see 600 patients in ER per year,” Pederson says. “In 2012, we anticipate seeing over 2,000. So in a five-year period, we have more than tripled our emergency room visits. We are seeing a lot more industrial accidents, major trauma, many of those involving car accidents, because there’s a lot more vehicles on the roads these days.”Many of those accidents involve a 40-ton tank truck colliding with a 5,000-pound passenger car. Those can bring several patients with horrible injuries into the small ER at the same time. The one doctor on call has to scramble to get some help. Read more »
Last modified Mon, 1 Oct, 2012 at 10:34
By John McChesney
So here's a problem you would think banks would love to have: more deposit money than ever before, coming in from people reaping the rewards of the oil boom in western North Dakota. Lease payments, royalties, and money from property sales are pouring in to the small independent banks of the many small towns in the region. Why is that a problem? Because banks make money from loans, not from deposits.
Gary Peterson, along with his family, owns the Lakeside Bank in New Town. I first interviewed him about a year ago, and didn’t notice the hint of gray showing along his temples. He’s smiling as he tells me, “The amount of liquidity in the system is amazing. We’re growing at 20% a year in deposit growth, which for rural North Dakota is unheard of. Before this happened, I think a lot of bankers would have told you that one their concerns is how we going to sustain the deposit side of our balance sheet. As the elderly would leave or die, those deposits would go to their kids who are usually elsewhere. Totally different story these days, we’re wondering what to do with it, frankly.”
The story of imbalance between money in the vault – so to speak – and money out on loan is common across the region. David Grubb is President of the Bank of Tioga, an unassuming, single story building on the town’s main drag. “We’ve seen a tremendous rise in deposits. The last couple of years we’ve grown at about a 26% clip. The growth rate has been very robust, and it also causes some concern.” Grubb adds that the fed has kept interest rates so low that that treasury yields are practically zero, so there’s no haven for new deposits there.
“Causes some concern” and “we’re wondering what to do with it” seem like odd sentiments in the booming economy of the oil patch. But until a few years ago, these banks were making mostly agricultural loans to farmers and ranchers, people with whom they had a personal relationship (Read More)
Last modified Tue, 23 Apr, 2013 at 19:40
By John McChesney
Note: A radio version of this story ran on NPR's Morning Edition today.
Theodore Roosevelt’s Elkhorn Ranch in North Dakota is often called the “Walden Pond of the West.” But Roosevelt’s ranch today is in the midst of an oil boom that is industrializing the local landscape. Critics say a proposed gravel pit and a bridge could destroy the very thing that made such a lasting impression on Roosevelt: the restorative power of wilderness.
It’s not easy to reach the place that Roosevelt said created the best memories of his life. Over 30 miles of dirt road, then and a mile-and-a-half hike, lie between a visitor and the ranch. Roosevelt National Park Superintendent Valerie Naylor drove me out on a Sunday. We didn’t see another person at the ranch site, which sits on the banks of the Little Missouri River.
Naylor showed me the old hand-dug well and the ranch house’s massive foundation stones, cut from granite. “That’s what’s so special about the Elkhorn ranch,” she told me, “We don’t have anything that’s reconstructed here – we just have a site and it’s the way that it was – for the most part – when Roosevelt first found it in summer of 1884. So it’s very special.”
The long drive out here takes you across the North Dakota Badlands, which are in fact beautiful, not bad. Because they made for hard travelling, early French trappers called them so. The area is crisscrossed with ravines (called coulees), meadows at bottom, tree-lined on the sides, and bordered by gray and red walls. Their fantastical formations fracture the horizon. Naylor said the site’s isolation is its charm. “You can see and hear things that many people have never seen or heard,” she explained, “That is, a landscape without any development, or minimal and all natural sounds, birds, wind in the cottonwood trees, and that’s exactly what Roosevelt heard and wrote about while he was here at the Elkhorn ranch.” (Read More)
Last modified Tue, 23 Apr, 2013 at 19:40
Report: Energy Development in the Rural West
A research report commissioned from Headwaters Economics by the Bill Lane Center for the American West, "Benefiting from Unconventional Oil" assesses how states like North Dakota are dealing with the rush to extract valuable energy resources. Some of the report's key findings:
"North Dakota appears to be learning on the job," says the report, "But a more consistent approach in all states that are facing future unconventional plays will need to replace the current, often ad-hoc assistance to impacted communities.".
The report, compiled by the Montana-based research institute Headwaters Economics -- is available for download here:
The report comprises part of a larger study of energy development in the rural west, including an interactive documentary video produced by the Bill Lane Center for the American West.
Last modified Tue, 24 Apr, 2012 at 17:03
(Photo: John Amos via Flickr)
True to the frontier attitude still prevalent here, oil and gas officials say there’s a treasure of fossil fuels in the West that will take America closer to energy independence than any plan conceived in Washington D.C.
While speaking to a group of energy industry leaders in Wyoming recently, Chesapeake Energy’s John Dill said his company — and other oil and gas developers — fully intends to implement their own American energy plan.
“The country has waited long enough for a national energy policy,” Dill told attendees of the Wyoming Infrastructure Authority’s October meeting in Laramie. “So we’re going to take the bull by the horn and do it ourselves.”
Chesapeake Energy’s plan, “A Declaration of Energy Independence,” proclaims America’s “$400 billion a year” in foreign oil imports is “fiscally insane.” Toward American energy independence, Chesapeake created a $1 billion venture fund to convert transportation fleets from gasoline to compressed natural gas (CNG), aiming at the No. 1 driver for oil imports. The company invested another $150 million in Sundrop Fuels, which is developing what it calls a non-food biomass “green gasoline.”
“We believe American energy needs to be supplied 100 percent by domestic resources,” said Dill, director of Chesapeake’s corporate development and government relations.
With a huge presence in America’s current onshore drilling boom, Chesapeake Energy is the second largest natural gas producer in the nation. It’s recent acquisitions in the Denver-Julesburg Basin and Powder River Basin are part of an industry-wide shift toward developing shale oil.
Last modified Tue, 6 Dec, 2011 at 12:16
By John McChesney
NPR carried my story on North Dakota's oil boom on Morning Edition today. Some of the characters will be familiar from my reporter's notebook from earlier this Fall. But you can hear emotion and connotation better in audio, so it's better to listen, rather than read in this case.
But North Dakota has a low 3.5 percent unemployment rate and a state budget with a billion dollar surplus. That's because of a major oil boom in the western part of the state, a discovery of at least 2 billion barrels to be gained by fracking — the controversial process of injecting fluid deep into underground rock formations to force the oil out.
The find could be the largest ever in the lower 48 states. It's expected to make North Dakota the third largest producer of oil after Alaska and Texas. But many residents of the oil boom region are not singing "Happy Days Are Here Again" — they're saying "enough."
Last modified Tue, 6 Dec, 2011 at 11:31
Ag and Oil: Can They Coexist?
By John McChesney
I should have known what it would be like here when I could not find a motel or hotel room within a hundred-mile radius of Williston, North Dakota.
Even after a year of reading about the oil rush on the Bakken field in western North Dakota, nothing had prepared me for what I found when I drove in. It seems that nearly every 18-wheeler tank truck in America is on the road here, making tens of thousands of trips , hauling water, fracking fluid, waste water, oil, and oil well condensate. Then there are the semis hauling fracking sand, gravel for drilling pads, gravel for roads, drill casings, pipeline sections, drilling rigs, huge oil tanks, and more. Dozens of small – we’re talking really small – rural towns with one main street dot the area, and those trucks rumble through the towns at all hours, creating monumental traffic jams and deep potholes.
Tankers by the hundreds blanket huge lots on the edges of towns. On the two-lane roads linking towns, you stare up the tail end of the tanker ahead, and flinch as the massive grills of Kenworths, Peterbilts, and Macks whoosh past on your left. It’s brutal out there. Last October through June of this year saw 1,142 crashes involving trucks, with 16 fatalities and 242 injuries. One official told me that some workers come here, take a two-week course in big rig driving, and hit the road as amateurs.
Last modified Wed, 2 Nov, 2011 at 15:01
Photo: Oil refinery in Billings, Montana, by Jon Martin via Flickr
By Reese Rogers
“We are of the firm belief we will become more sovereign by the barrel.”
–Chairman Tex Hall. January 2011.
Construction began recently on the first oil refineries to be built in the United States in decades. The refinery is situated on the Fort Berthold Reservation in North Dakota, home to the Mandan, Hidatsa, and Arikara Nation. The construction is the culmination of a development process that began back in 2003 when tribal leaders of the Three Affiliated Tribes first proposed the refinery project as a way of bringing economic development and jobs to the reservation community. Fort Berthold now encompasses much of the booming Bakken oil field.
This recent energy boom on the reservation and now the permission to build the refinery are long-awaited bright spots in the economic development of a people who have seen more than their fair share of hardship. Beyond the history of decimation through disease and violent conflict, many tribe members today still remember the tribe’s 1951 relocation to make way for the Garrison Dam on the Missouri River. Their original settlements and childhood homes are now buried under the waters of Lake Sakakawea.
Last modified Wed, 28 Sep, 2011 at 10:58