Our inventory is filling up quickly. We added another 10 houses and 6 are already gone. We have 4 bedrooms and 5 Bedrooms Houses available now. If you are a company or a group needing housing for 20 or more, we can accommodate you by special request.
One of the more common comments one receives when talking to others about the Bakken is that it is the new “Gold Rush” and that one must “get out” before it goes down. This attitude and comment shows that that commenter might not be familiar with the Bakken and the oil business.
Gold is not oil.
- Gold is metal that is used for fashion, some technology (recently-not in 1848) and a dubious form of value. Oil is used for energy to power the world. If the world never mined another ounce of gold, very little would change. If the world never got another barrel of oil, we would go backwards hundreds of years.
- Once unearthed, Gold is in the hands of humans forever. It is not consumed. The amount of gold will never ever go down. Oil, once used, is gone forever.
- Gold is not as profitable as oil. Exxon-Mobil is one of the largest companies in the world. The middle east is the richest place on Earth. The average Abu Dhabi citizen has a net worth of $17 Million.
There is no gold in the Bay Area of California. How many gold mines are operating there? None. The Bakken has oil. That has been proven over 10,000 times.
Did one have to “get out” of Saudi Arabia during any of the previous fluctuations in the price of oil or would that have been short sighted?
We remain cautious but optimistic about the Bakken, which is the same as we were when prices were $100 BBL. We are not concerned about short term price fluctuations. We do not see it as a an opportunity one must exit.
We continue to purchase new real estate and housing.
We are often asked whether the drop in oil prices has had an effect on the demand for housing. I can say, that in our observation and business, there has been no effect. Our rental housing in Watford City and Williston are fully booked, with a waiting list as of January 2, 2015. We have not dropped our rents or offered any incentives.
Will this change in the future? We don’t know. Here is a short synopsis of our opinions and outlook.
Oil prices fluctuate. This should not come as a surprise to people. Oil companies are enormous businesses with multi-year plans and multi-billion dollar budgets. They can not start and stop projects with monthly price fluctuations.
We are of the opinion that the current pricing is high enough to support and to continue to grow our real estate business. We believe, however, that the margin for prices to decline and business to continue as usual is much tighter. At some point, it will effect demand for housing in the Bakken.
A significant positive of the decline is that, in our observation, supply growth of competitive housing units has slowed very significantly.
Demand is still much greater than supply.
It is our opinion that oil will rebound. It always has.