Air Travel In The Bakken Gets Boost From ND Land Board

Minot Airport
Minot Airport

The North Dakota Land Board has awarded more than $27 million in grants to airports throughout western North Dakota. The grants add to the $11 million awarded by the FAA. In total, more than $38 million has been awarded airports in the state.

The bulk of the funding will be allocated in areas impacted by Bakken oil and gas development. The largest grants include:

  • Minot - $22.2 million from the state
  • Bowman County - $4.6 million from the FAA and $1.9 million from the state
  • Bismark Airport - $2.3 million from the FAA
  • Dickinson Airport is getting $1.9 million from the FAA and $1.2 million from the state
  • Crosby - $1 million from the state
“Airports in western North Dakota are experiencing record increases in boardings and activity, requiring additional investment in new and expanded terminals, runways and other maintenance needs,” said Gov. Jack Dalrymple. “These state grants will help airports in our oil and gas counties address the impacts of rapid growth and enhance air travel opportunities for our citizens.”

No other airport is getting more than $500,000 in grant funding. The state set aside $60 million in Energy Impact Grants to fund airport projects. The $27 million awarded is the first round of distributions.

Read the full press release from the Governor's office at governor.nd.gov

Bakken Banks See "Exceptional" Performance Compared To Other Shale Areas

Bank Deposits Rising
Bank Deposits Rising

Banks in Western North Dakota are doing better than their counterparts in other shale plays. That's the primary discovery in a report released by the Minneapolis Federal Reserve Bank.

Bakken institutions have seen growth in deposits, construction, land development loans, and commercial & industrial loans. The same can be said for banks in Arkansas, Oklahoma, Pennsylvania, and Texas, but the increases are not as large as those experienced in the Bakken.

A few takeaways from the report include:

  • Deposits at banks in the Bakken region grew 49% from 2010 to 2012. That compares growth in Louisiana of 39% from 2008-2010
  • Construction & land development loans secured by real estate have doubled in the past year compared to areas in Oklahoma and Pennsylvania that have seen 29% and 20% growth, respectively
  • Profitability has also been impacted. The return on average assets has increased to 1.46% compared to just 0.92% in the rest of the state

The only real problem with all the growth might be finding qualified employees. There such a high demand in the oilfield that banks have a hard time finding qualified people.

Read the full report at minneapolisfed.org

No Need For Keystone XL - Continental's CEO Harold Hamm

Keystone XL Map
Keystone XL Map

Keystone XL might not be needed now that other alternatives are being used to move Bakken oil. That's the story from Amy Harder at the National Journal. She interviewed Continental Resources' CEO Harold Hamm and he says "It's not critical any longer."

Keystone XL has been delayed due to "environmental" concerns since 2008 when TransCanada first applied for the proper permits. It's really anyone's guess as to what will happen now.

Continental has committed to move 35,000 b/d on Keystone XL if the pipe is built, but Hamm isn't confident the pipeline will ever move Bakken oil. For one, the environmental lobby is against it and other companies are expanding in the region. Hamm's Hiland Partners is one of the companies with a proposed pipeline.

A few of the major projects of note include:

Read the full article at nationaljournal.com

Bakken Oil Revenue Could Push North Dakota's Legacy Fund to $3 Billion

Bag of Cash
Bag of Cash

North Dakota first proposed the Legacy Fund in 2008 and legislators approved its creation in 2010. The legislature expected deposits might reach $600 million dollars by the summer of 2013. Instead, the fund is sitting on $1.3 billion and could very well surpass $3 billion by the time lawmakers determine the best use of the funds.

30% of annual oil extraction and production taxes are directed to the fund and spending is restricted through 2017. Even then, spending has to be approved by a two-thirds vote and no more than 15% of the fund can be spent in any two year budget cycle.

“It is growing very fast. It’s going to become much bigger.”
— Republican Gov. Jack Dalrymple

Add the $583 million rainy day fund and the $342 million property tax relief fund and it becomes very clear the North Dakota oil boom is setting the state up for a long and prosperous future.

Read the full article at thefiscaltimes.com