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.