North Dakota’s Oil is Fracking out of control

North Dakota is experiencing a tremendous boom in their economy and boasts the lowest unemployment in the nation (3.5%). While it is virtually envied by every other American state, it has brought headaches to those outside the benefits of the oil boom and affluence to those benefiting from the growth. The state is now the third largest producer of oil behind Alaska and Texas. This is because of the newly developed “fracking” technology that has recently allowed drillers to access the Bakken oil field, which takes up one-third of the entire state. One of the main issues is the population explosion affecting the states infrastructure, price inflation, and lack of housing.

With town populations literally doubling in a year has left municipalities strained to keep control and build enough housing to support the explosion. Many towns never have had to worry about zoning or city planning because the population/economy was so stagnant. Housing is in such demand that a city administrator who owns a four-bedroom house sleeps in one bedroom and rents out the other three at $800 a month each. With oil rig employees making $90,000 a year it has increased product prices in the area. Local residents in the area not involved with oil have to pay $7 for a gallon of milk, which is proving a burden and making some residents abandon their homes. A radio station in Tioga has recently closed and turned the property into a lucrative opportunity: an RV park. A new two bedroom apartment will go for more than $1,200. The low supply of housing is causing the demand curve to shift right, therefore increasing prices tremendously.

Source: http://www.boston.com/news/education/k_12/articles/2012/01/27/western_nd_officials_detail_oil_boom_problems/

http://www.npr.org/2011/12/02/142695152/oil-boom-puts-strain-on-north-dakota-towns

http://www.governing.com/topics/energy-env/north-dakotas-oil-boom-blessing-curse.html