Great summary of news in the last week, “big trigger” oil tax reduction won’t get pulled, and lots of new housing in Williston available in ’15.
If you want a brief, superb summary of news last week on energy, Bakken, North Dakota, and cooking temperature numbers, you gotta’ check out:
6/6 – Million Dollar Way – Weekend update, Part I – June 6, 2015 – Mr. Oksol calls OPEC ‘dead.’ What we refer to as OPEC is now essentially a venue for Saudi Arabia.
6/6 – Million Dollar Way – Weekend update, Part II – June 6, 2015 – Reminder on the huge project to relocate the airport. Good perspective on the cost – $250M. For comparison that beautiful recreational center was around $65M. Good question to ponder s how will the large number of hotels that have built up within walking distance of the airport fare after the relocation.
Mention of the first unmanned airport in the country now in operation west of Grand Forks AFB.
Also, ISIS is a “new nation”.
Check out both articles for news on cooking data that I’ll not cover.
Two other interesting articles:
6/1 – Bismarck Tribune – Oil tax trigger not implemented – As expected, the “big trigger” tax reduction on oil will not go into effect. The tax Commissioner announced the average price was $59.47 in May, well above the threshold of $55.09 needed to trigger the reduction. Prices were below the cut off from January through April but moved above the cutoff in May.
5/28 – Williston Herald carried in the Grand Forks Herald – Housing development to open in booming Williston market – there will be 2,126 housing units coming online this year in Williston.
Keep in mind this is in relation to a city that had around 11,000 residents before the boom and reportedly has around 33,000 people in the immediate area before the slowdown.
Let’s assume there will only be two-person occupancy in those housing units. That would represent an increased housing stock sufficient to provide a roof over the head of 39% of the previous population or 13% of the recent population.
Has the amount of housing in your community grown by somewhere between 10% and 40% in recent years? How about in this year alone?
The Eagle Crest Apartment complex held a grand opening over that weekend. There are 168 units in five buildings, with 10% one-bedroom, 80% two-bedroom, and 10% three-bedroom. Half of the non-low income units are rented. If my math is correct, there are 67 units available.
Other than the humongous increase in housing stock, the big news in this article is that a 168 unit apartment complex has to hold a high publicity grand opening in order to fill out the last 40% of the units. That is a major commentary on the economy backing off from the crazy-wild growth of a year ago.
Check out these quotes from one of the key players developing this project:
“We’ve gone from white to merely red hot,”
If this is a bust, I’m not sure we could survive a boom.
Is that what a slow down looks like in your state?